Home Care Package Subsidies Increase in 2025
The Australian Government has announced Home Care Package subsidies increase effective from 1 January 2025, and will increase again on 1 October 2025.
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The Australian Government has announced an increase in subsidies for the Home Care Packages (HCP) Program, effective from 1 January 2025, and will increase again on 1 October 2025. This adjustment aims to account for reasonable price increases resulting from providers paying aged care workers higher award wages.
Moreover, this initiative is designed to ensure older Australians continue to receive quality in-home support that enables them to live independently and with dignity.
Better pay for aged care workers
Starting 1 January 2025, award wages for many aged care workers will rise in accordance with the Fair Work Commission’s decision in the Aged Care Work Value Case Stage 3. Further increases to award wages are scheduled on 1 October 2025.
To support these wage adjustments, the government has aligned subsidy increases with these key dates so that care providers can continue offering sustainable services.
Increased subsidies
The new subsidy rates will reflect a 0.93% increase from 1 January 2025, with an additional 0.44% increase from 1 October 2025. The latter increase is contingent on the passage of the new Aged Care Act and the implementation of the Support at Home Program, which will replace the current Home Care Packages Program on 1 July 2025.
Here’s a quick summary of the changes in the daily Home Care Package subsidy rate:
| Package level | Daily rate from 1 July 2024* | Daily rate from 1 January 2025 |
| Level 1 | $29.01 | $29.28 |
| Level 2 | $51.02 | $51.49 |
| Level 3 | $111.04 | $112.07 |
| Level 4 | $168.33 | $169.90 |
| *The Government contribution changes 1 July each year. | ||
For questions about the aged care wage rise for home care workers, you can contact the Department of Health and Aged Care via email at hcpmanualsfeedback@health.gov.au.
To learn more about Home Care Packages, please see our guide: Understanding Home Care Packages – Leora Healthcare
Support from Leora Healthcare
At Leora Healthcare, we are dedicated to supporting a fair and sustainable aged care system that empowers recipients and aged care workers through our Home Care Packages.
Contact us today to learn more about how we can help you or your loved ones to understand and make the most of these important developments in aged care.