Aline and John’s story is one of hard work and dedication. Moving to Australia as teens, they took on every challenge—working tirelessly, building their home, and ensuring their kids had the best opportunities. Now in their 70s, they deserve to enjoy retirement but could use a little help at home.
When they first heard about Home Care Packages, their reaction was, “It’s not for us” or “It’s too expensive since we don’t get the pension.” Sound familiar? Many self-funded retirees feel the same—balancing assets and super, often without access to the aged pension.
Home Care Packages offer flexible support to help you “Age in Place,” but they take time to arrange. Planning early means you get the care you need—over 279,000 Australians already benefit from Home Care Packages as of 2023 [3]
If you’re a self-funded retiree, planning for care at home is a smart move. With 2 million Australians aged 65+ partially or fully self-funded, [1] this trend is only growing. By 2050, half of Australians at retirement age are expected to be self-funded, [2]
Understanding the Home Care Package: what it offers
Aline and John, like many self-funded retirees, went through the process of being assessed for a Home Care Package, they initially thought they just needed help with things like gardening and housework. However, due to their income, they were faced with paying an income-tested fee, which made these services feel less affordable compared to paying privately.
What they didn’t realise—just like many others—is that a Home Care Package can cover a wide range of services beyond the basics. These can include:
- Mobility aids
- Nursing care and allied health services (like physiotherapy and occupational therapy)
- Social support groups
- Health and wellness programs, such as yoga or fitness classes.
Since their initial assessment, Aline and John’s needs have changed. They now require more support, but because they didn’t fully understand what’s included in a Home Care Package, they’re missing out on the opportunity to immediately access a broader range of care right away.
Getting started with a Home Care Package
The Australian Government offers two main aged care programs: Home Care Packages (HCP) and the Commonwealth Home Support Programme (CHSP), accessed via My Aged Care. Simplified by the new Single Assessment System, these programs aim to keep older Australians independent at home.
Both HCP and CHSP are great options, but for self-funded retirees, HCPs tend to be the better choice. They provide more comprehensive care and can be tailored to fit your changing health and wellness needs. On the other hand, the CHSP is more suited to those who only need a lower level of support.
If you’re like Aline and John, to access a Home Care Package, you’ll need a free Single Assessment System. This is typically done at your home, where you can have a friend or family member present. Interpreters are also available if needed. Eligibility is based solely on care needs, with no age or financial restrictions.
Key tips:
- Don’t delay—assessment wait times can range from days to months.
- Be honest about your needs to get the right support.
- Use the waiting period to research home care providers
How Catholic Healthcare can help
Whether it’s your first assessment or you’re reassessing your needs, our experienced team is here to make sure you feel informed and prepared. Here are a few tips for self-funded retirees like Aline and John who already have an approved Home Care Package:
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Keep your Home Care Package approval active
If you’ve been approved for a Home Care Package but aren’t using it just yet, don’t let it lapse. Get in touch with your aged care assessment organisation and ask to pause it while keeping your approval active. If you give it up, you might have to go through a lengthy reassessment.
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Reach out to a provider for advice
Even if you’re not using your package yet, it’s a good idea to talk to a home care provider like Catholic Healthcare. We can help you understand what services you may be eligible for now and what changes are coming with the Support at Home program.
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Stay informed about changes
With the introduction of the Support at Home program*, the way services are delivered will shift. One of the major benefits for self-funded retirees is that you won’t need to pay a contribution for clinical services, like nursing and allied health, under the new system. Stay updated on these changes to make sure you’re ready.
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Compare costs and services
Look at the services you might need now and compare the costs of accessing them through your Home Care Package versus paying privately. Many services, like personal care, allied health, and social outings, can be accessed through Catholic Healthcare at competitive rates. Plus, as your needs change, the funding for your Home Care Package will increase, giving you more flexibility.
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Make the most of tailored services
With a Home Care Package, you can adjust your care to suit your needs—whether it’s help with daily tasks, clinical care, or social support. Plus, Catholic Healthcare offers an easy-to-use app that lets you manage your services and track your funding in real time.
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Income-tested care fee (ITCF)
If you’re fully or partially self-funded, you’ll need to apply for the income-tested care fee (ITCF) through Services Australia. Once you submit your application, it’ll be assessed based on your income, and you’ll find out how much you’ll need to contribute. Keep in mind that wait times can vary, so it’s best to apply ahead of when you expect to need the services.
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ITCF limits and the lifetime cap
The good news is, while Home Care Packages are income-tested, there’s a cap on what you’ll need to contribute. Once you reach the annual limit, you won’t have to pay more for that year. Even better, there’s a lifetime cap on the total amount you’ll need to contribute across all aged care services. This is especially helpful if you ever need residential aged care, as your previous home care fees will count towards this cap, potentially reducing your out-of-pocket costs later. This lifetime cap helps protect your assets and makes future aged care costs more manageable. It’s designed to keep you from being financially overwhelmed as your care needs increase over time, giving you peace of mind for the long run.
*Support at Home [4] is being implemented using a staged approach. From 1 July 2025, Support at Home will replace the Home Care Packages Program and the Short-Term Restorative Care Programme. Home care recipients transitioning to the new program from July 2025 will be allocated Support at Home funding that is equivalent to their existing Home Care Package level and aligned to the new legislated program rules. The Commonwealth Home Support Programme (CHSP) will transition to Support at Home no earlier than 1 July 2027. However, CHSP providers will be covered by the new Aged Care Act from 1 July 2025. Providers will need to adhere to the new regulatory framework (registration model) from this date. Further information about deeming providers into the new registration categories will be provided to all CHSP providers shortly.
Wrapping it up
Navigating the aged care system can feel overwhelming, especially if you’re a self-funded retiree who doesn’t qualify for the full pension. But Home Care Packages offer flexible, government-supported options to help you stay independent and get the care you need.
At Catholic Healthcare, we’re here to guide you every step of the way. Whether you need help with assessments, funding applications, or just understanding your options, we’re happy to assist.
References
[1] https://treasury.gov.au/sites/default/files/2019-03/association_of_independent_retirees.pdf
[3] https://www.gen-agedcaredata.gov.au/getmedia/9f69f40e-8a35-46b0-83e6-a6bba8144b12/Home-care-packages-program-data-report-1-October-31-December-2023
[4] https://www.health.gov.au/sites/default/files/2024-12/support-at-home-program-handbook_0.pdf
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