The recent Federal Budget 2020-2021 confirms that Improved Payment Arrangements for Home Care will be implemented from early next year.

New changes to how the government pays home care subsidies and supplements will occur in 2 phases.

Phase One

From 1 February 2021,  home care subsidies and supplements will be paid in arrears each month Instead of being paid in advance

During this phase, service providers will continue to hold and manage unspent funds on behalf of their care recipients.

Phase Two

From 1 September 2021, subsidies will be paid for actual services provided – subsidies and supplements will be paid to the actual amount used for home care services in arrears each month

The Australian Government will hold any unspent funds of the Home Care Package. These funds will continue to be available to care recipients when needed.

Why are these changes important?

These new arrangements will reduce the prudential risk in home care over time, and improve protections for care recipients’ home care funds. People receiving a home care package will have more secure access to their package funds with more transparency. These changes are also better suited to the service delivery, consumer-directed care nature of the Home Care Packages Program

How will the changes affect care recipients?

Care recipients will continue to:

  • receive the same care and services from their provider, in line with their care plan
  • have the full Government entitlements available to them
  • pay the same home care fees



You can click here to learn more about the upcoming changes in your home care payment on the website of Department of Health

As your home care service provider, Melbar will partner with you to actively respond and adapt to these upcoming changes next year.

We will continue to update you with relevant information regarding the Improved Payment Arrangements.



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