Capping Home Care Administration and Management Fees

  • Labor will protect older Australians from rorts and rip-offs, by capping how much users can be charged in Home Care administration and management fees.

  • The Aged Care Royal Commission heard that up to 50 per cent of some Home Care Packages were being eaten up in administration and management fees. Money that should be going on care.

  • Labor’s plan will help older Australians stay in their own homes for longer, and is in addition to our support for higher wages for Home Care workers.

Why do we need this?

One of the top concerns for Australians using Home Care Packages are the unreasonably high administration and management fees charged by some providers.

Aged care funding should be spent on improving the care of older Australians, not management bonuses, new office fit outs or glossy marketing schemes.

According to the Grattan Institute, an average of about 25 per cent of home care fees are taken up by administration and management costs. While providers do need to meet costs for staff support and training, evidence to the Aged Care Royal Commission showed some organisations are gouging as much as 50 per cent from people’s packages. 

And as many as 40 per cent of all complaints to the Aged Care Quality and Safety Commission relate to fees.

These unacceptably high fees lead to older Australians missing out on the care they need to keep living at home.

Older Australians need a government that isn’t afraid to put the quality of their care and safety first.

The details

An Albanese Labor Government will:

  • Cap Home Care Fees to stop rortingLabor will introduce a cap on the Home Care administration and management fees. We will work with older Australians, families, providers and experts to set caps that protect the quality of residents and the quality of care.

  • Introduce clear and transparent reporting on Home Care feesHome Care records can be confusing and unclear - creating a situation where providers are able to charge high fees without the full knowledge of the care recipient or their family. Labor will require providers to give Home Care recipients a clear monthly breakdown of fees and services delivered.

The cost of these changes will be met from within departmental resources.

There are many good quality operators doing the right thing. These changes will protect the reputation of the sector.

These measures build on our plan to support Home Care staff by introducing a new registration scheme, measures to improve continuity of care and supporting the aged care workers’ case for fairer wages at the Fair Work Commission.