Understanding aged care government funding in Australia
Many Australians are unaware of the support the government offers through aged care funding programs that enable older individuals to continue living safely and independently in their homes and communities. This article provides an overview of the main types of government funding for aged care services, how they work, and how to access them. This includes the Commonwealth Home Support Program (CHSP) and Home Care Packages (HCP).
Key takeways
- The Australian Government funds aged care services through the CHSP and HCP programs.
- CHSP funding is entry-level and suitable for minimal daily assistance.
- HCP funding supports more complex care needs across four funding levels.
Government funding for aged care services
The Australian Government offers two primary forms of aged care government funding: Commonwealth Home Support Program (CHSP) and Home Care Packages (HCP). Read on to gain a detailed understanding of these two services.
What is CHSP funding?
CHSP funding allows for an entry-level form of assistance, designed for older people who need help living independently at home and in their community. If someone is generally able to manage but just needs a little assistance with daily tasks to continue living at home, CHSP services may be right for them. These services might also be suitable if you’ve had a setback and need support for just a short period of time to help get back on your feet
Key features of CHSP funding:
- Not means tested – all older Australians can apply.
- Funded by the government and delivered by approved providers.
- Services are subsidised; individuals pay a small contribution per service hour.
- Care plans are tailored but typically limited to a few hours per week.
Types of services offered under CHSP:
- Transport to appointments and activities
- Domestic help (e.g. house cleaning, washing clothes)
- Personal care (e.g. help with showering or dressing)
- Home maintenance and modifications (e.g. changing light bulbs, getting a grab rail installed)
- Aids and equipment (e.g. bath seat, raised toilet seat, mobility aids)
- Meals and food preparation
- Managing medication
- Some allied health (e.g. podiatry, physiotherapy, occupational therapy)
- Social support (e.g. accompanied activities, group excursions)
- Respite (care for you while your carer takes a break).
CHSP funding is often the first step in the aged care journey and is suitable for short-term or minimal assistance. As needs increase, individuals often transition to a more comprehensive program.
Learn more: What is the difference between CHSP and HCP?
What is HCP funding?
HCP funding provides structured support for older Australians with more complex or ongoing care needs who still wish to live independently. There are four levels of HCP funding to help meet different levels of care needs.
Levels of HCP funding:
- Level 1 – Basic care needs – $10,698.15 funding per year
- Level 2 – Low level care needs – $18,812.10 funding per year
- Level 3 – Intermediate care needs – $40,945.70 funding per year
- Level 4 – High level care needs – $62,075.55 funding per year
How HCP funding works
- Funding is allocated by the government and paid directly to your chosen provider.
- You select an approved government provider, like Five Good Friends.
- A tailored care plan is developed based on your individual needs and goals.
- Monthly statements show exactly how funds are used.
- Some providers may charge a basic daily fee - Five Good Friends does not.
HCP funding enables access to a broad range of services similar to CHSP but with ongoing case management and flexibility to change services as needs evolve.
The bottom line on aged care government funding
Understanding aged care government funding options like CHSP and HCP is crucial for older Australians and their families. These programs provide vital support to help people live independently at home with dignity and confidence. With the right guidance and a trusted provider, accessing this support is straightforward.
If you’d like to know more about accessing help at home, we'd be honoured to help. Contact our care advice team 1300 787 581.