In our previous blog, Understanding the Costs of Home Care Packages in Australia: A Simple Guide, we broke down the financial side of Home Care Packages (HCPs), covering everything from eligibility and government subsidies to management fees and personal contributions.
Now that you understand how the funding works, let’s take the next step: learning how to get the most value out of your Home Care Package. Whether you’re receiving care yourself, supporting a loved one, or advising clients, knowing how to stretch your budget can result in more services, better outcomes, and less financial stress.
This guide will help you use your HCP funds wisely to maintain independence and quality of life at home.
1. Understand Your Home Care Package Budget
Before making any decisions, it's essential to understand exactly how your Home Care Package funds are allocated. The package budget typically includes:
- Government subsidy – Varies based on your assigned home care package level from Level 1 to Level 4, ranging from basic support needs to high-level care.
- Your contribution, which may include:
- A basic daily fee (many providers waive this).
- An income-tested care fee, calculated by Services Australia based on your financial situation.
Your provider manages this pool of funds, and all services, products, and administration must be covered within it. This includes:
- Care management
- Package management
- Direct care services (like nursing, personal care, cleaning)
- Consumables (like continence aids)
- Equipment (mobility aids, shower chairs, etc.)
It is recommended to review your monthly statements carefully. They break down where every dollar is going. If something seems unclear or unnecessary, ask questions. This transparency is your tool for accountability.
2. Choose the Right Provider
Not all HCP providers charge the same fees. Some charge significantly higher management fees, which can dramatically reduce the portion of your package that goes toward actual care.
So, while choosing the provider, it is recommended to consider the following fees charged by them:
- Package management fees: Cover administration (e.g., compliance, accounting).
- Care management fees: Charged for coordinating and reviewing your care. Ensure you’re getting value.
Strategies to compare providers:
- Use My Aged Care’s provider comparison tool.
- Request a Fee Schedule or Service Agreement upfront.
- Ask: “How much of my package will be left for services after fees?”
The price charged by providers is a vital aspect to consider while selecting the service provider, but not at the cost of poor service. We also recommend you look for:
- Prompt communication
- A dedicated care manager
- Flexibility in service delivery
- Positive client reviews
3. Consider Self-Management
Self-management gives you more control over your Home Care Package, allowing you to reduce overhead fees and increase flexibility. You’ll still have provider support but handle more of the organisation yourself.
Under this approach, instead of a provider fully managing your package, you (or a trusted person) take over some administrative tasks, such as:
- Sourcing and booking care workers
- Tracking spending
- Managing invoices
Some of the major benefits of the sales management approach are:
- Cost savings: More funds for care hours and equipment
- Freedom of choice: Hire trusted carers, even contractors
- Customised services: Tailor support to your need
4. Review and Adjust Your Care Plan Regularly
Your care needs can change overtime, so your Home Care Package (HCP) care plan should change with them. Regular reviews help ensure you’re still getting the right support and using your budget in the most effective way.
It is necessary to review and adjust your care plan regularly because:
- Health conditions may improve or decline.
- You might need more help with one task and less with another.
- Your priorities might shift (e.g., wanting more cleaning support and less transport).
- Needs and priorities may shift
- Avoids waste and ensures effective use of funds
5. Use Approved Providers for Services
Using approved providers for services is essential to make sure your Home Care Package (HCP) remains compliant with government rules and to avoid unexpected out-of-pocket costs. Services such as physiotherapy, personal care, domestic help, and home modifications must be delivered by providers that meet government quality and safety standards. This ensures you're protected and your funding is used appropriately. Before booking any service or purchasing equipment, it's important to check with your care provider to confirm if the item or service is covered under your HCP guidelines. Spending on non-approved services or items can lead to delays in reimbursement or worse, the expense being declined entirely. By sticking with approved providers and staying within the HCP framework, you protect your budget and ensure you’re receiving high-quality, safe, and eligible care.
6. Be Smart About Extra Services
When it comes to home care or aged care services, it’s easy for optional extras like hairdressing, massage, or alternative therapies to quietly inflate your overall costs. While these services can boost comfort and well-being, they’re usually not essential and are not covered by government subsidies, meaning you’ll pay for them out-of-pocket.
6.1 How to Save on Extra Services
- Ask About Bundled Services
Combine multiple services into one visit to save time and travel costs. - Reduce the Frequency
Consider switching to fortnightly rather than weekly services to lower annual costs. - Prioritise Health and Safety
Ensure essential services (e.g., nursing, mobility, medication) are fully covered before lifestyle extras.
In a nutshell, extra services can be enjoyable and add a sense of normalcy and pleasure to daily life, but they should be treated as optional. By being strategic about what you include and how often, you can maintain a balanced care plan that supports both your well-being and your budget.
7. Monitor Your Monthly Statements
Your monthly care statement is more than just a routine document. It’s a vital tool for managing your care budget effectively. Each statement provides a detailed breakdown of how your Home Care Package (HCP) funds are being used. Regularly reviewing this information can help you spot potential issues early and ensure you're getting full value from your plan.
7.1 What to Expect in Your Statement?
Every month, your provider should send you a statement that outlines:
- Starting balance
- Government contributions
- Your contributions
- Provider charges
- Service costs
- Current balance
7.2 Why is it important?
These statements are crucial for transparency and accountability. They allow you to:
- Track spending
- Identify unusual charges
- Spot unused funds
- Understand fund usage over time
8. Switch Providers if Needed
If you're not satisfied with your current home care provider, whether due to high fees, poor service quality, or lack of communication, you have the right to make a change. Switching providers can feel daunting, but it’s an important step in ensuring you get the care and value you deserve.
8.1 What You Should Know Before Switching
- Unspent Funds Move With You: One of the biggest concerns about changing providers is money; but don’t worry. Any unspent funds in your Home Care Package will transfer to your new provider, so you won’t lose access to your funding.
- Compare Providers Carefully: Before making the switch, take the time to research other providers. Look at their service offerings, fee structures, customer reviews, and how well they communicate. Choose one that aligns with both your budget and care needs to avoid repeating the same issues.
- Plan for a Smooth Transition
Give notice as per your agreement and coordinate the handover to avoid service gaps.
You are in control of your care. If your current provider isn’t meeting your expectations, it’s absolutely okay to look elsewhere. A good provider will support your independence, offer clear communication, and make your wellbeing their top priority.
9. Conclusion
Getting the most out of your Home Care Package doesn’t require a finance degree. It just requires the right information, a proactive mindset, and a provider who works in your best interest.
Key takeaways:
- Choose providers wisely and consider self-management
- Regularly review care plans and statements
- Don’t hesitate to switch providers
- Seek expert advice if needed
At ACC, we support older Australians in understanding and managing their HCP budgets more effectively. From reducing provider fees to developing a tailored care plan, we’re here to ensure your funding stretches further so you can live the life you choose with dignity and support.
Aged Care Reform Update
The Australian Government is set to launch the new Support at Home Program (SAH), which will replace both HCP and CHSP.
For a deeper look at how the Support at Home Program (SHP) will reshape aged care funding and services, check out our previous blog: Support at Home vs Home Care Packages.
