Level 3 Home Care Package: $40,529 Annual Funding for Intermediate Care Needs

Quick Facts:

Annual Government Funding: $40,529 (2025 rates)
Daily Funding: $111.04 per day
Your Contribution: Basic daily fee $12.75/day (may apply)
Typical Support Hours: ~16 hours per fortnight
Eligibility: 65+ years (50+ for Aboriginal/Torres Strait Islander)

A Level 3 Home Care Package provides government-subsidized funding to help older Australians with intermediate care needs remain living independently at home. This package level bridges the gap between basic Level 2 support and intensive Level 4 care.

Need to compare all package levels? Visit our complete guide to home care packages in Australia for detailed comparisons of funding, eligibility, and services across all four levels.

Home Care Package Levels Explained

Home Care Packages are funded by the Australian Government to provide coordinated care services, allowing individuals to live independently. The Home Care Packages Program uses a consumer-directed care approach, ensuring services align with individual needs and goals.

There are four levels of Home Care Packages, each with increasing funding and support:

Level 1 Home Care Package: Basic care needs, with an annual subsidy of $10,588.
Level 2 Home Care Package: Low-level care needs, with an annual subsidy of $17,346.
Level 3 Home Care Package: Intermediate care needs, with an annual subsidy of $40,529 as of January 1, 2025.
Level 4 Home Care Package: High-level care needs, with an annual subsidy of $79,473.

Level 3 is designed for those requiring more frequent and comprehensive support, such as assistance with daily tasks and some nursing care.

Home Care Package Level 3 Funding and Costs

The funding for Level 3 Home Care Packages is primarily through a government subsidy, with additional contributions possible from the care recipient. As of January 1, 2025, the annual government subsidy is $40,529, translating to approximately $111.04 per day. However, the total package budget can include:

Government Subsidy: $40,529 annually for Level 3.
Care Recipient Contributions: These may include:
- Basic Daily Fee: Up to $12.75 per day as of September 20, 2024, for Level 3.
- Income-Tested Care Fee: Based on income and assets, determined by Services Australia. For a detailed explanation, see our income-tested care fee guide.
- Additional Service Fees: For extra services beyond the package, agreed upon with the provider.

For tips on how to best use your funds, read our home care package spending guide.

For instance, in a case study from My Aged Care, a full pensioner with a Level 3 package paid only the basic daily fee, resulting in a total daily budget of $123.79 ($111.04 government subsidy + $12.75 basic fee).

This structure ensures affordability, with financial hardship assistance available for those unable to afford fees due to circumstances beyond their control.

How to Apply for a Home Care Package

The application process is structured to ensure accessibility and fairness:

Registration: Start by registering with My Aged Care, either online or by calling 1800 200 422. This involves answering questions to assess initial eligibility.
Assessment: If eligible, an in-person assessment is conducted by the Aged Care Assessment Team (ACAT). This assessment, typically at home, evaluates specific care needs and recommends the appropriate package level.
Assignment: Upon approval, you receive a letter with your referral code and must enter into a Home Care Agreement within the specified timeframe. You can then choose a provider from approved options.
Waiting Lists: Note that there may be waiting lists, especially for higher levels like 3 and 4, due to high demand.

This process ensures that care is tailored to individual needs, with assessments using tools like the Integrated Assessment Tool, updated as of July 1, 2024.

Eligibility for Home Care Packages Australia

Eligibility for a Home Care Package, including Level 3, requires meeting specific criteria:

Age: Generally, individuals must be 65 years or older, or 50 years or older for Aboriginal or Torres Strait Islander people. Younger individuals with disabilities or special needs may also qualify if other specialist services cannot meet their needs.
Residency: Applicants must be Australian citizens or permanent residents, residing in Australia.
Care Needs: An assessment determines if the individual has intermediate care needs, typically involving difficulties with personal care, household tasks, and mobility, but not requiring 24/7 support.

This information is supported by official guidelines from My Aged Care and the Australian Government Department of Health and Aged Care.

What’s Included in a Level 3 Home Care Package?

Level 3 Home Care Packages provide a range of services to support intermediate care needs, which can include:

Personal Care: Assistance with showering, dressing, toileting, and continence management.
Domestic Assistance: Help with cleaning, laundry, shopping, and meal preparation.
Nursing Services: Medication management, wound care, and monitoring of medical conditions.
Allied Health Services: Physiotherapy, podiatry, speech therapy, and other therapies to maintain mobility and health.
Social and Recreational Activities: Support for staying active and connected, including transport to appointments or social events.
Home Modifications: Safety enhancements like installing rails or ramps, ensuring the home is suitable for independent living.

The exact services are determined through a care plan developed with the chosen provider, ensuring flexibility and personalization. For example, a provider like CareAbout notes that Level 3 packages typically offer around 16 hours of support every fortnight, depending on fees.

Choosing a Home Care Package Provider

Selecting a provider is a critical step, as it affects the quality and type of care received. Considerations include:

Reviews and Ratings: Check feedback on platforms like Your Side Australia for provider reputation.
Service Offerings: Ensure the provider offers the specific services needed, such as nursing or home modifications.
Pricing Transparency: Understand all fees, including basic daily fees and additional service charges, to avoid surprises.
Care Worker Qualifications: Verify the experience and training of care workers, especially for specialized services.

It’s also important to decide if you want to use a traditional provider or explore self-managing your home care package for greater flexibility.

Providers must meet quality standards and provide consumer-directed care, ensuring transparency in pricing, as outlined by the Australian Government Department of Health and Aged Care.

Support at Home Program 2025: Changes to Home Care Packages

A significant development is the transition to the Support at Home program, set to replace the Home Care Packages Program and Short-Term Restorative Care Programme from July 1, 2025. This reform, in response to the Royal Commission into Aged Care Quality and Safety, aims to create a simpler, more equitable system. Key points include:

Delayed price caps on services until July 1, 2026, allowing providers to set prices currently.
Transition support for providers, including IT upgrade grants of $10,000, as noted by Feros Care.
The Commonwealth Home Support Programme will transition no earlier than July 1, 2027, ensuring continuity.

This change is crucial for future applicants, as it may alter funding models and service delivery, and should be monitored closely.

Package Level	Annual Government Subsidy (as of Jan 1, 2025)	Basic Daily Fee (as of Sep 20, 2024)
Level 1	$10,588	$11.72
Level 2	$17,346	$12.40
Level 3	$40,529	$12.75
Level 4	$79,473	$13.08

Conclusion

Level 3 Home Care Packages are a vital resource for Australians with intermediate care needs, offering tailored support to maintain independence. By understanding eligibility, services, and funding, and staying informed about upcoming changes like the Support at Home program, individuals can make informed decisions. For personalized advice, contact My Aged Care or consult trusted providers like CareAbout.

Frequently Asked Questions About Home Care Packages

What exactly is a Level 3 Home Care Package?

A Level 3 Home Care Package is a government-subsidized program designed for older Australians with intermediate care needs. It provides approximately $40,529 annually (as of 2025) to fund customized services that help you remain living independently at home. This level offers more support than Level 1 or 2 packages but less intensive assistance than a Level 4 package.

How do I apply for a Home Care Package?

To apply for a Home Care Package, you need to:

Contact My Aged Care on 1800 200 422 or visit their website to register
Complete an initial screening assessment over the phone
Schedule an in-home assessment with the Aged Care Assessment Team (ACAT)
Receive your approval letter with package level recommendation
Be assigned a package when one becomes available
Choose a provider and sign a Home Care Agreement

The entire process from initial contact to receiving a package can take several months, particularly for higher-level packages.

How much is a Level 3 Home Care Package?

As of January 2025, a Level 3 Home Care Package provides $40,529 in annual government funding (approximately $111.04 per day). In addition to this government subsidy, you may need to pay:

A basic daily fee of up to $12.75 per day
An income-tested care fee if your income exceeds certain thresholds
Additional fees for services outside your care plan

Full pensioners typically only pay the basic daily fee, while self-funded retirees may contribute more based on their income assessment.

What is included in a Level 2 Home Care Package?

A Level 2 Home Care Package provides $17,346 annually (as of 2025) for low-level care needs. Services typically include:

Basic personal care assistance
Domestic help with cleaning and laundry
Meal preparation
Social support and companionship
Transport to appointments and community activities
Light gardening and home maintenance
Basic nursing care

A Level 2 package generally provides around 7-10 hours of support per fortnight, though this varies based on the specific services chosen and provider fees.

How many hours in a Level 3 Home Care Package?

A Level 3 Home Care Package typically provides around 16 hours of support every fortnight, though this can vary significantly based on:

The types of services you choose (some services cost more than others)
Your provider’s hourly rates and administration fees
Whether you’re paying the basic daily fee and/or income-tested care fee
If you receive any hardship supplements

For example, if you choose more expensive services like nursing care, you may receive fewer total hours than if you primarily use domestic assistance services.

Who is eligible for a Home Care Package in Australia?

To be eligible for a Home Care Package in Australia, you must:

Be 65 years or older (50+ for Aboriginal and Torres Strait Islander people)
Be an Australian citizen, permanent resident, or hold a specific visa type
Live at home (not in residential aged care)
Need support to remain living independently
Be assessed and approved by an Aged Care Assessment Team (ACAT)

Your care needs will determine which package level you’re eligible for, from Level 1 (basic care) to Level 4 (high-level care).

What can Home Care Package funds be used for?

Home Care Package funds can be used for a wide range of services and items that directly relate to your care needs, including:

Personal care (bathing, dressing, grooming, toileting)
Nursing services and medication management
Allied health services like physiotherapy and podiatry
Cleaning, laundry, and meal preparation
Transport to appointments and social activities
Social support and companionship
Home maintenance and minor modifications
Mobility equipment and assistive technology
Respite care

Funds cannot be used for entertainment, food, rent/mortgage, vacation costs, gambling, or items covered by other government programs like Medicare.

What is the difference between Home Care Package levels 1, 2, 3, and 4?

The four Home Care Package levels differ in the amount of funding provided and the level of care needs they address:

Level 1 ($10,588/year): Basic care needs - occasional assistance with things like shopping, household tasks, and appointments
Level 2 ($17,346/year): Low-level care needs - regular assistance with personal care, household tasks, and some allied health support
Level 3 ($40,529/year): Intermediate care needs - more comprehensive and frequent support including some nursing care and therapeutic services
Level 4 ($79,473/year): High-level care needs - similar to Level 3 but with more intensive and frequent assistance, approaching the level of care you might receive in a nursing home

Each level provides progressively more funding and support hours, with different fee structures.

What is the Level 4 Home Care Package subsidy amount?

As of January 1, 2025, the Level 4 Home Care Package government subsidy is $79,473 annually, which equals approximately $217.73 per day. This is the highest level of home care funding available and is designed for people with high-level care needs who might otherwise require residential aged care.

How do Government Funded Home Care Services work?

Government Funded Home Care Services in Australia work through:

Assessment: The government assesses your needs through My Aged Care and the ACAT team
Funding allocation: Based on your assessment, you’re assigned a package level (1-4)
Provider selection: You choose an approved provider to manage your package
Care planning: You work with your provider to create a personalized care plan
Service delivery: The provider arranges services based on your care plan
Funding management: The government pays your subsidy directly to your chosen provider, who manages it on your behalf
Reporting: Your provider must provide regular statements showing how your funds are being used
Reviews: Your needs and services are reviewed regularly to ensure they remain appropriate

The system is designed to give you choice and control over your care while ensuring accountability for the use of government funds.

How do Aged Care Packages NSW differ from other states?

Home Care Packages in NSW operate under the same federal guidelines as other states and territories, with identical funding amounts, eligibility criteria, and basic structures. However, some differences may include:

The availability of providers (NSW has one of the largest selections of providers)
Waiting times for package assignment (which can vary by region)
Supplementary state-funded programs that can complement federal packages
Local council services that may provide additional support
Regional pricing variations for services (especially between metropolitan Sydney and rural areas)

The core Home Care Package Program is nationally consistent, but local factors can influence how quickly you receive services and what additional support might be available to you in NSW.

What are the changes to Home Care Package Guidelines 2024?

Key changes to the Home Care Package Guidelines in 2024 include:

Updated subsidy rates with annual indexation
Introduction of new quality indicators for home care providers
Enhanced reporting requirements for providers
Improved transparency in pricing and fees disclosure
Changes to the priority system for package assignment
Updates to the Serious Incident Response Scheme (SIRS) for home care
Preparation for the transition to the Support at Home program in 2025
New rules around unspent funds management
Changes to exit fee limitations

These updates aim to improve quality, transparency, and prepare for the broader aged care reforms coming in 2025.

Can a Home Care Package pay for residential respite?

Yes, a Home Care Package can pay for residential respite care, with some limitations:

It can only fund the basic daily fee for residential respite, not accommodation or additional service fees
The respite must be part of your care plan and approved by your provider
You must still access residential respite through the normal channels (ACAT approval and booking with a facility)
Using package funds for respite reduces the amount available for in-home services
You’re still entitled to the government’s annual residential respite allocation (63 days per financial year) separate from your package

Using Home Care Package funds for respite can be a good option when you’ve used your government-allocated respite days or need additional short breaks throughout the year.

Home Care Package Level 3: $40,529 Annual Funding Guide 2025 - Eligibility & Costs

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