Level 2 Home Care Package: $18,814 Annual Funding for Low Care Needs

Quick Facts - 2025 Rates:

  • Annual Government Funding: $18,814 (based on $51.49 daily subsidy)
  • Your Daily Fee: $12.40 basic daily fee
  • Income-Tested Fee: $0-$37.55/day (based on income assessment)
  • Typical Support Hours: ~7 hours per fortnight
  • Eligibility: 65+ years (50+ for Aboriginal/Torres Strait Islander)
  • Assessment Required: Free ACAT evaluation

⚠️ Program Change: Support at Home program replaces Home Care Packages from July 1, 2025.

What is Home Care Package Level 2?

Home care package level 2 is designed for older Australians with low-level care needs, helping them stay independent at home. It covers daily tasks like cleaning, personal care, and transport, funded by the government to delay moving to residential care.

A Level 2 package is a step up from basic support and sits below the more intensive Level 3 and Level 4 packages. To understand where it fits in the broader system, see our complete guide to Home Care Packages in Australia.

Eligibility and Application

To qualify, you generally need to be 65 or older (50 for Indigenous Australians), an Australian resident, and require support. The process involves contacting My Aged Care for an ACAT assessment to determine your needs and package level.

Funding and Costs

The government provides a daily subsidy of $51.49 for level 2, equating to about $18,814 yearly. You may pay a basic daily fee of $12.40 and, depending on income, an income-tested fee up to $37.55/day, assessed by Services Australia. For tips on managing these funds, see our home care package spending guide.

Services Included

Services typically include assistance with showering, dressing, cleaning, meal prep, transport, shopping, and gardening, all tailored to your needs by your chosen provider.

Comprehensive Overview of Home Care Package Level 2 in Australia

This detailed report provides an in-depth look at home care package level 2, ensuring all aspects are covered for a thorough understanding. As of March 9, 2025, the information reflects the current system, with upcoming changes noted for future consideration.

Introduction to Home Care Package Level 2

Home care packages are government-subsidized services aimed at supporting older Australians to live independently at home, particularly those with more complex care needs than basic support. Level 2 specifically targets individuals with low-level care needs, offering assistance with daily tasks to maintain independence and delay entry into residential aged care. This level is crucial for those who need more support than level 1 but less than the intermediate needs of level 3, making it a common choice for many seniors.

Eligibility Criteria

Eligibility for a home care package level 2 requires meeting specific criteria, as outlined by various sources including My Aged Care and Home Caring. Generally, you must:

  • Be 65 years of age or older, or 50 years or older if you are Aboriginal or Torres Strait Islander.
  • Be an Australian citizen, permanent resident, or hold a special category visa.
  • Need coordinated care and support to remain living independently at home, not covered by other government-funded services.

The level of care needed is determined through an assessment, ensuring the package aligns with your specific needs. This assessment is conducted by an Aged Care Assessment Team (ACAT) or Aged Care Assessment Service (ACAS), ensuring a personalized approach.

Application Process and Assessment

Applying for a home care package involves several steps, starting with contacting My Aged Care. You can apply online or call 1800 200 422 to express interest. An assessor will then visit your home to evaluate your care needs, using tools like the Integrated Assessment Tool as of July 1, 2024, to recommend the appropriate package level. The assessment is free and considers your daily challenges, health conditions, and support requirements. If eligible, you are placed in a national queue for package allocation, with potential waiting times due to high demand.

Services Included in Level 2

Level 2 home care packages are designed to support low-level care needs, offering a range of services tailored to individual preferences. According to Your Side Australia and Home Caring, typical services include:

  • Personal care assistance, such as help with showering, dressing, and continence management.
  • Household tasks like cleaning, laundry, and meal preparation.
  • Support with transport, shopping, and gardening.
  • Social support and companionship to maintain community connections.

These services are delivered on a consumer-directed care basis, meaning you can choose how to allocate the funding to meet your specific needs, with providers like CareAbout offering approximately 7 hours of support every fortnight, depending on fees.

Funding and Costs

The funding for home care package level 2 is subsidized by the Australian Government, with specific rates as of January 1, 2025, detailed in My Aged Care:

  • Daily government subsidy rate: $51.49
  • Fortnightly government contribution: $720.86
  • Annual funding (calculated): Approximately $18,814.85 ($51.49 * 365)

However, care recipients may have out-of-pocket costs:

  • Basic Daily Fee: A set fee of $12.40 per day as of September 20, 2024, which everyone must pay, subject to changes in March and September.
  • Income-Tested Care Fee: Based on income, with no fee for full pensioners or those earning up to $33,735 annually. For higher incomes, fees can range from $18.77 to $37.55 per day, with annual caps at $6,834.77 and $13,669.63, and a lifetime cap of $82,018.15.

You can estimate fees using the My Aged Care fee estimator and complete an income assessment via Services Australia for a fee advice letter, contactable at 1800 227 475. Financial hardship assistance is available if needed, detailed at My Aged Care financial hardship assistance.

Role of the Provider

Providers play a critical role in delivering home care package services, as outlined by Australian Government Department of Health and Aged Care. They are responsible for:

  • Coordinating and delivering care services based on your assessed needs and preferences.
  • Managing the government subsidy, claiming it monthly after service delivery.
  • Ensuring high-quality care, complying with legislation, and protecting your rights and privacy.
  • Providing transparency in pricing, with fees for additional services agreed upon with you.

You have the choice to either use a provider to manage your funds or to self-manage your home care package, which can offer greater flexibility. You can choose your provider using the My Aged Care Find a provider tool, ensuring they meet your needs and offer competitive pricing. Providers must also support consumer-directed care, allowing you to switch providers if unsatisfied, as noted by ACCC.

Upcoming Changes: Support at Home Program

Significant changes are on the horizon with the introduction of the “Support at Home” program, set to replace the current Home Care Packages Program and Short-Term Restorative Care Programme from July 1, 2025, as per Australian Government Department of Health and Aged Care. The Commonwealth Home Support Programme will transition no earlier than July 1, 2027. This new program aims to:

  • Better support independence at home with upfront services like allied health and home modifications.
  • Introduce new classification and budget levels to meet individual needs more effectively.
  • Implement equitable pricing, with price caps delayed to July 1, 2026, as noted by Feros Care.

These changes will bring a more efficient, responsive, and sustainable system, focusing on early interventions and higher care levels for complex needs, as detailed in Features of the new Support at Home program.

Conclusion

Home care package level 2 is a vital resource for older Australians needing low-level support to live independently at home, with funding, services, and provider roles clearly defined. As of March 9, 2025, the current system is in place, but the upcoming Support at Home program from July 1, 2025, will bring significant changes. For more information, visit My Aged Care or contact your local aged care assessment team to ensure you receive the support you need.

Key Citations

Frequently Asked Questions

What is a Level 2 Home Care Package?

A Level 2 Home Care Package is a government-subsidized program designed for older Australians with low-level care needs. It provides funding to support services that help you remain living independently at home, including personal care, household assistance, and social support.

How much funding do I get with a Level 2 Home Care Package?

As of 2025, a Level 2 package provides approximately $18,814 annually ($51.49 daily). This government subsidy goes to your chosen service provider who then delivers services according to your care plan.

How do I qualify for a Level 2 Home Care Package?

To qualify, you generally need to be 65 years or older (50+ for Aboriginal or Torres Strait Islander people), be an Australian resident, and require low-level support to stay at home. You’ll need an assessment by an Aged Care Assessment Team (ACAT) to determine your eligibility and package level.

What services can I get with a Level 2 Home Care Package?

Services typically include personal care (help with showering, dressing), household tasks (cleaning, laundry, meal preparation), transport assistance, social support, and minor home maintenance. The exact services depend on your individual needs and care plan.

How much will I have to pay out of pocket?

You may need to pay a basic daily fee of $12.40 and potentially an income-tested care fee up to $37.55 per day depending on your income. Full pensioners generally don’t pay an income-tested fee. Your provider should clearly explain all fees before services begin.

When will Home Care Packages change to the Support at Home program?

The Australian Government plans to replace the current Home Care Packages program with the new Support at Home program from July 1, 2025. This change aims to provide more flexible and responsive care to meet individual needs.