The Federal Government has moved ahead with its plan to cap administration and management fees for Home Care Packages (HCPs), as well as banning home care exit fees.

From 1 January 2023, fees for care management will be capped at 20% of the package level, while package management fees will be capped at 15%; maximum fees have been set out on the table above.

Providers will be prohibited from charging exit fees, as well as charging separately for third-party services and charging fees for any calendar month after the first in which no care services are delivered; this delivers on a promise made by Labor ahead of the May 2022 Federal Election.

Aged Care Minister Anika Wells (pictured) has encouraged home care providers to start planning for the changes now, as well as talk to their clients.

“A reduction in administration and management charges means more money in your package to pay for help around the house, personal and clinical care, assistive equipment, and other supports to stay safe and independent at home.

“We are acting quickly to remove the most excessive charges and putting downward pressure on prices. We will support providers to adjust their pricing and set reasonable and competitive charges,” she said.

Council on the Ageing (COTA) Australia has welcomed the changes, with CEO Ian Yates AM (pictured) calling it an “important step” to improving home care quality, accountability and transparency, and urging the Government to keep monitoring the system to weed out “inefficient operators who refuse to move with the times”.

“Older Australians deserve to have their home care package funds going directly to the care they need and deserve – not being used up on things like higher-than-average profits or inefficient management and administration.

“This reform won’t solve all the problems overnight, but it will go a significant way to ensuring older Australians get more hours of the quality care they deserve,” he said.

The Weekly SOURCE has contacted several home care providers for comment.