What Happens to the Unspent Funds In My Home Care Package?

Getting older is a journey we all embark on, and for many Australians, it will one day involve considering home care services. Home care packages are designed to support older individuals in maintaining their independence while receiving the necessary care and assistance they require.  

However, one common question that often arises is – what happens to the unspent funds in your home care package?  

Below we explore the ins and outs of home care packages in Australia, including what happens to unspent funds, to help you make informed decisions about your care. 

What is a home care package?

Before delving into the details of unspent funds, let’s start with the basics. A home care package is a government-funded program in Australia that provides a range of services to help seniors live independently in their own homes. These packages are tailored to individual needs and can include services such as personal care, meal preparation, transportation, and even home modifications. 

Home care packages are divided into four levels, each offering a different level of support: 

• Level 1: Basic care needs 
• Level 2: Low-level care needs 
• Level 3: Intermediate care needs 
• Level 4: High-level care needs 

Individuals are assessed to determine which level of care package is most suitable for their specific requirements.  

For more information, read our comprehensive piece on exploring home care. We’ve also developed guides on applying for home care as well as preparing for an aged care assessment. 

Understanding who funds home care packages

Once you have been assessed and allocated a home care package, you will receive a budget to spend on approved care services. This budget is divided into two main components: 

• Government subsidy: The government provides funding to support your care needs. The amount you receive depends on the level of your home care package. 
• Your contribution: You may be required to contribute to the cost of your care services based on your income and financial situation. The government assesses your contribution and may adjust it annually. 

The total budget available for your care package is the sum of the government subsidy and your contribution. It’s important to note that the government subsidy does not cover the full cost of care services, so your contribution helps bridge the gap. 

To learn more about who pays for home care services in Australia, read our recent blog article. 

Spending your home care package funds

Now, let’s focus on how you can utilise the funds allocated to your home care package. The key to making the most of your package is to choose services that align with your unique needs and requirements as well as aspirations and goals. Here’s how it works: 

• Care planning: After your assessment, you will work with a care coordinator to create a care plan. This plan outlines your goals and the specific services you require. It’s crucial to have open communication with your coordinator to ensure your plan meets your expectations. 
• Service providers: You have the flexibility to choose service providers that suit your preferences and needs. Providers may include home care agencies, personal care assistants, nursing services, or therapists. Research and consult with providers to select those who can best address your requirements.
  
• Budget management: Your home care package funds are managed by your chosen provider. They will invoice you for the services provided, and your funds will be deducted accordingly. It’s essential to keep track of your budget to ensure you are staying within your allocated amount. 

Read our blog post for more guidance around choosing an aged care provider that’s right for you. 

What happens to unspent funds?

Let’s delve into what happens to unspent home care funds in Australia, as outlined by the Australian government’s official Home Care Packages Program Guidelines, which is designed to uphold transparency and accountability in fund management. 

1. Carryover of unspent funds: According to the Home Care Packages Program Guidelines, if you have unspent funds at the end of the financial year, you can carry over up to 15% of your home care package’s annual subsidy amount for future use. 

2. Spending on additional services: The guidelines also grant you the flexibility to use unspent funds for additional services beyond your care plan. For example, if you’ve allocated most of your funds to personal care but have unutilised resources, you can explore other services like gardening, social outings, or home modifications. 

3. Financial reconciliation: The Home Care Packages Program Guidelines mandate that at the conclusion of each financial year, your home care provider conducts a financial reconciliation. This process ensures that your allocated funds have been used appropriately. Any surplus unspent funds exceeding the 15% allowable carryover limit will be returned to the government. 

4. Plan review: As per the guidelines, your care plan should be regularly reviewed to assess changes in your needs. If your requirements decrease or increase, your care plan can be adjusted to reallocate funds accordingly. 

5. Exit from home care: The guidelines also address the scenario where you decide to leave the home care program or transition to residential aged care. In such cases, any unspent funds, including the allowable carryover amount, will be returned to the government. However, it is advisable to discuss your options with your service provider before making such a significant decision. 

Making the most of your home care package 

To make the most of your home care package, consider the following tips: 

• Regularly review your care plan: As your needs evolve, it’s crucial to update your care plan to ensure your package aligns with your current situation. 
• Prioritise open communication: Maintain open and transparent communication with your care coordinator and service providers to address any concerns or preferences you may have. 
• Explore additional services: Don’t hesitate to use unspent funds to explore new services that can enhance your quality of life. 
• Budget wisely: Keep track of your budget to avoid overspending or underspending your allocated funds. 
• Seek advice: If you’re unsure about any aspect of your home care package, seek advice from your aged care provider. More generally, you can also consider organisations like My Aged Care or independent advocacy services. 

For more tips and pointers, read our post on ‘Maximising the benefits of your home care package’. 

In summary

Home care packages in Australia provide a lifeline for older individuals who wish to age in place while receiving the necessary support and assistance. Understanding how these packages work, including what happens to unspent funds, is crucial for making informed decisions about your care. 

Remember that your home care package is designed to be flexible and cater to your unique needs. By actively participating in the planning process and managing your budget wisely, you can ensure that your home care package serves you well, providing the care and assistance you need to live a fulfilling and independent life as you continue to age gracefully in your own home. 

We’re here to support you

At Respect, we’re passionate about supporting older Australians to ensure the next phase of their lives are filled with purpose and possibilities.  

So whether it’s through our network or aged care homes or our home care support options, we are here for you and your family whenever you need us. Your future should shine with meaning, comfort and conveniences — and with our support, you’re backed by over a century of care and consideration for the way you want to live.     

We’re here to help! For more information about how to access a Home Care Package and get started with home care support, including the available opportunities and our range of services, download your Complete step-by-step guide to Care at home.  

Got questions or like to receive more support? Please reach our care at home advisors or call us on 1300 144 144 and choose “home care” as a service option.