Contributing financially to your Home Care Package – Is it Compulsory?

There are two types of fees which may be compulsory; the Daily Contribution Fee (also known as the Basic Daily Fee) depends on your choice of Provider to manage your Home Care Package.  The Income Tested Fee depends on your unique financial situation and is independent of your choice of Provider.

Daily Contribution Fee (Basic Daily Fee)

Your obligation to pay a Daily Contribution Fee is fully dependent on which Provider you choose.  Many Providers make it compulsory. The good news is that if you choose Better Living Homecare you’ll avoid the Daily Contribution Fee altogether.  Although every Provider can ask their client to pay this fee, we choose not to.  Instead of asking our clients for more money we focus on maximising the value of the existing package to their benefit.

Our clients save up to $141.10 per fortnight by not having to pay this fee, which is the maximum Providers can charge (correct for the period of 20 March 2017 to 19 September 2017).  This rate increases each year in turn with changes to the Age Pension and is applicable to each person even if you are part of a couple.  It’s important to consider this fee when choosing a Provider as it can have a significant impact on your financial situation.

Income Tested Fee

The Income Tested Fee is based on your income and not your choice of Provider.  Depending on your income and assets, you may be asked to contribute more to the cost of your Home Care Package. This fee is calculated by the Department of Human Services following an assessment of your financial situation. Approved Providers are not able to waive this fee, it is compulsory.

You can only be asked to pay an income-tested care fee if you have a yearly income above the following approximate thresholds:

  • Individual person – $25,711.40
  • Member of a couple but now separated due to illness (individual income) – $25,243.40
  • Member of a couple living together (combined income) – $39,925.60.

There are annual and lifetime caps that apply to the income-tested care fee. Once these caps are reached, you cannot be asked to pay any more income-tested care fees.

If you would like further information on the possible fees payable with a Home Care Package please contact us on 1300 307 344.

Better Living Home Care