Navigating the aged care system in Australia can feel overwhelming, particularly when it comes to understanding government funding options. This guide provides a clear overview of the key government subsidies and programs available to support older Australians in accessing quality care services.
Please note: This information is provided for general reference only. For current and specific information about funding amounts and eligibility, please refer to the official My Aged Care website or contact them directly on 1800 200 422.
Understanding Aged Care Subsidies in Australia
The Australian Government provides various forms of financial assistance to help make aged care services more affordable and accessible. These subsidies are designed to support older Australians whether they need care in their own home or in a residential aged care facility.
Home Care vs. Residential Care Support
Government funding for aged care in Australia is broadly categorised into two main streams:
- Home-based care support – Helping older Australians continue living independently in their own homes
- Residential care support – Financial assistance for those living in aged care homes
Home Care Packages Program
The Home Care Packages Program is a government initiative designed to help older Australians live independently in their own homes for as long as possible.
What are Home Care Packages?
Home Care Packages provide a coordinated package of care services tailored to meet the complex care needs of older people living at home. These packages offer a more structured and comprehensive approach than basic support services.
Home Care Package Levels
Home Care Packages are offered across four levels to support people with different care needs:
| Level | Care Needs | Funding Level |
| Level 1 | Basic care needs | Lowest funding level |
| Level 2 | Low-level care needs | Low-moderate funding level |
| Level 3 | Intermediate care needs | Moderate-high funding level |
| Level 4 | High-level care needs | Highest funding level |
For current subsidy amounts, please refer to the My Aged Care website (myagedcare.gov.au) or contact them directly as funding levels are adjusted by the government periodically.
What Home Care Packages Can Fund
Home Care Packages can help fund various services including:
- Personal care assistance (bathing, dressing)
- Nursing care
- Allied health support
- Meal preparation and nutrition
- Transport to appointments
- Home maintenance and modifications
- Equipment and aids
- Social support activities
Basic Daily Fee and Income-Tested Care Fee
Recipients of Home Care Packages may be asked to contribute to the cost of their care through:
- Basic Daily Fee: A contribution that everyone can be asked to pay, which is up to 17.5% of the single basic Age Pension
- Income-Tested Care Fee: An additional contribution that some people may need to pay based on their income assessment
How to Access Home Care Packages
- Contact My Aged Care by phone or online
- Undergo an assessment with an Aged Care Assessment Team (ACAT)
- Receive approval for a specific package level
- Be placed in the national priority queue
- Select a service provider once a package becomes available
Waiting Periods for Home Care Packages
It’s important to be aware that there are often waiting periods for Home Care Packages, particularly for higher-level packages. The waiting time depends on:
- The package level you’re approved for
- Your priority level based on needs assessment
- Your location
The national queue is managed by My Aged Care, and package assignment is based on when you were approved and your assessed priority.
Commonwealth Home Support Programme (CHSP)
For those with lower-level care needs, the Commonwealth Home Support Programme provides entry-level support services to help older Australians remain independent at home and in their community.
CHSP Services Include:
- Domestic assistance (cleaning, laundry)
- Personal care
- Home maintenance
- Home modifications
- Meals and food services
- Transport
- Social support
- Allied health and therapy services
- Nursing care
- Respite care
CHSP services typically involve a small contribution from the care recipient, with the government subsidising the majority of the cost.
Residential Aged Care Subsidies
For older Australians who can no longer live at home, the government provides financial assistance for residential aged care.
Basic Subsidy Through the Aged Care Funding Instrument (ACFI)
The Aged Care Funding Instrument (ACFI) determines the basic subsidy for each resident in an aged care home. The ACFI assesses a person’s care needs across three domains:
- Activities of Daily Living: Assistance needed with personal care, mobility, and nutrition
- Behaviour Supplement: Support needed for cognitive impairment or challenging behaviours
- Complex Health Care: Specialised nursing procedures and activities required
The higher the assessed care needs, the higher the subsidy paid to the aged care provider.
Additional Supplements for Residential Care
Beyond the basic subsidy, additional supplements may be available for:
- Dementia and behaviours supplement: For residents with cognitive impairment due to dementia or other conditions
- Veterans’ supplement: Additional support for eligible veterans
- Oxygen supplement: For those requiring ongoing oxygen treatment
- Enteral feeding supplement: For residents requiring enteral feeding assistance
- Viability supplement: For aged care homes in rural and remote areas
- Homeless supplement: For providers that specialise in caring for people who are experiencing homelessness
- Hardship supplement: For residents experiencing financial hardship
Residential Care Fees
Residents in aged care facilities may need to contribute to their care costs through:
- Basic Daily Fee: Payable by all residents, set at 85% of the single basic Age Pension
- Means-Tested Care Fee: An additional contribution based on income and assets assessment
- Accommodation Payment: Covers the cost of accommodation in the facility
- Additional Service Fees: For extra services or amenities (optional)
Financial Hardship Assistance
Financial assistance is available for both home care and residential care recipients who are experiencing financial hardship and cannot afford their care contributions.
Accessing Aged Care Subsidies
My Aged Care
My Aged Care is the starting point for accessing Australian Government-funded aged care services. Through My Aged Care, older Australians can:
- Get information about different types of aged care services
- Have their needs assessed for eligibility
- Find out about costs they may need to pay
- Find specific care providers in their local area
Assessment Process
Before accessing subsidised aged care services, an assessment is required:
- Regional Assessment Service (RAS) conducts assessments for entry-level support through the Commonwealth Home Support Programme
- Aged Care Assessment Team (ACAT) or Aged Care Assessment Service (ACAS) in Victoria assesses eligibility for Home Care Packages, transition care, and residential aged care
Income and Assets Assessment
For Home Care Packages and residential aged care, an income and assets assessment determines what fees you may need to pay:
- This assessment is conducted by Services Australia (formerly the Department of Human Services) or the Department of Veterans’ Affairs for veterans
- It’s important to complete this assessment early in the process, as it can take several weeks to process
Planning Ahead for Aged Care
Understanding and accessing aged care subsidies often requires forward planning. Here are some important considerations:
- Early assessment: Even if you don’t need services immediately, getting assessed can help you understand what support is available
- Waiting periods: Be aware that there may be waiting periods, particularly for Home Care Packages
- Financial planning: Consider consulting with a financial advisor who specialises in aged care
- Regular reviews: As your needs change, your care arrangements and subsidies may need to be reviewed and adjusted
Recent Changes and Reforms to Aged Care Subsidies
The aged care sector in Australia has undergone significant reforms in recent years, with further changes planned following the Royal Commission into Aged Care Quality and Safety.
Key changes have included:
- Increased transparency in aged care pricing
- Changes to home care package allocation and management
- Additional funding for residential care and workforce development
- Greater emphasis on quality standards and regulation
Please note: Aged care policies and funding arrangements are subject to change as reforms are implemented.
Comparing Aged Care Subsidies
| Subsidy Type | Eligibility | Assessment Required | Purpose |
| Home Care Packages | Older Australians needing coordinated services to remain at home | ACAT/ACAS assessment | Tailored care services in the home |
| Commonwealth Home Support Programme | Older Australians needing basic support services | RAS assessment | Entry-level support services |
| Residential Care Subsidy | Older Australians unable to continue living at home | ACAT/ACAS assessment | Care in an aged care facility |
| Dementia and Behaviour Supplement | Residents with dementia or behavioural issues | ACFI assessment | Additional support for higher care needs |
| Viability Supplement | Facilities in rural/remote areas | Location-based | Support for higher costs in remote areas |
Additional Support for Carers
Carers of older Australians may also be eligible for support through:
- Carer Payment: Income support for carers who provide substantial care
- Carer Allowance: Supplementary payment for carers providing daily care
- Carer Supplement: Annual lump-sum payment to eligible carers
- Respite care: Services that provide temporary relief for carers
Important Resources
For accurate and up-to-date information about aged care subsidies, funding amounts, and available support, we strongly recommend consulting these official resources:
- My Aged Care: 1800 200 422 or www.myagedcare.gov.au – The official government gateway to aged care services in Australia
- Services Australia: www.servicesaustralia.gov.au – For information about payments, income and assets assessments
- Carer Gateway: 1800 422 737 or www.carergateway.gov.au – Support services for carers
- Department of Health and Aged Care: www.health.gov.au/topics/aged-care – Policy information and updates on aged care reforms
Disclaimer
The information provided on this page is general in nature and does not constitute legal, financial, or professional advice. Legasy is not a government authority or financial advisor, and this content should be used for informational purposes only.
All specific funding amounts, eligibility criteria, and fee structures mentioned on this page are subject to change by government authorities. We have deliberately avoided quoting specific dollar figures as these are regularly updated by the relevant government departments.
For the most current and accurate information regarding aged care subsidies and costs, please consult My Aged Care, Services Australia, or the Department of Health and Aged Care directly. We recommend consulting with a financial advisor specialising in aged care for advice tailored to your specific circumstances.
Legasy takes reasonable care to ensure the accuracy of information provided, however, we cannot guarantee its currency or completeness. Users should independently verify all information before making decisions based on it.
This page was last updated: May 2025