What is a third-party provider overhead in self-managed aged care? 

Self-managed aged care may allow you to choose an independent worker or external business to deliver an approved Support at Home service. 

For example, you may want to keep your current cleaner, gardener, physiotherapist or podiatrist rather than use someone directly employed by your registered provider. 

When your provider agrees to engage that worker or business, a third-party provider overhead may be added to the cost of the service. 

A third-party provider overhead is an amount your registered Support at Home provider may charge to cover the additional work involved in engaging and overseeing an external worker or business. 

Even when you find and choose the worker yourself, your registered provider remains responsible for the safety and quality of the funded service. The provider must make sure the third party meets relevant workforce, screening, training and service requirements. 

The overhead helps cover the provider’s costs in supporting this arrangement. It is separate from the amount charged by the independent worker, but both amounts form the final service price charged to your Support at Home budget. 

For a third-party service delivered through a self-managed Support at Home arrangement, the provider overhead is capped at 10% of the actual cost of the service. 

For example: 

The 10% figure is a maximum, not an automatic fixed charge. You may negotiate a lower overhead with your provider. 

The overhead must be included in the final service price. It cannot be claimed as a separate service on top of the permitted price. 

The overhead may cover work your registered provider completes to establish and oversee the third-party arrangement, such as: 

The exact work required will depend on the service and the type of worker you have selected. 

A third-party overhead may apply when you ask your provider to engage an independent worker or external business as part of your self-managed aged care arrangement. 

It does not mean that every service under Support at Home automatically attracts an additional 10% charge. Your provider must explain the price that will apply and agree on it with you before the service begins. 

Support at Home providers must set prices that are reasonable, transparent and based on the cost of delivering the service. They must also publish their commonly charged prices so older people and families can compare providers. 

A participant contribution may apply depending on the type of service you receive and your assessed contribution rate. 

Clinical supports are fully government-funded. Contributions may apply to independence and everyday living services. When a contribution applies, it is based on the final service price, including the third-party provider overhead. 

Your individualised budget and monthly statement should clearly show the service price and the amount charged to your Support at Home funding. 

Before agreeing to an external worker or service business, ask: 

At Leora Healthcare, we explain the full service price before an approved third-party arrangement begins. We can help you understand what the overhead covers, how it affects your available funding and whether the service fits within your Support at Home budget. 

Talk to our team about choosing trusted service providers with clear costs and ongoing support behind you.