Caps on aged care fees from next year

Vulnerable older Australians will be less likely to be ripped off thanks to a new government mandate.

In a big win for older Australians, from 1 January 2023 administration and management fees for at-home aged care will be capped at no more than 20 per cent and 15 per cent of a total package respectively.

The policy change was announced by aged care minister Annika Wells, who said excessive fees and charges made up a large portion of the high cost of home-based aged care.

“We are committed to giving care recipients better value for money and the choice and control to shop around,” she said.

Read: Putting the care back into aged care

“A reduction in administration and management charges means more money in your package to pay for help around the house, personal and clinical care, assistive equipment, and other supports to stay safe and independent at home.

“We are acting quickly to remove the most excessive charges and putting downward pressure on prices.”

The onus is on aged care providers to review their charges and discuss and agree any pricing changes with their care recipients by 1 January 2023, ensuring they obtain informed consent for any changes.

“We will support providers to adjust their pricing and set reasonable and competitive charges,” Ms Wells said.

“I encourage providers to start planning for, and talking to, their care recipients about these changes now.”

Read: The set and forget of medication in aged care

In addition to the fee caps, the government is also banning exit fees, improving provider choice for care recipients and stopping providers from charging separate brokerage and subcontracting fees.

The announcement was welcomed by Ian Yates, chief executive of seniors advocacy group Council on the Ageing (COTA), who said the cap would give older Australians and their families more confidence that their money was paying for care and not lining the pockets of providers.

“Quality home care is vital for older Australians and this announcement is an important step in improving care and boosting accountability and transparency in the sector,” he said.

“Older Australians deserve to have their home-care package funds going directly to the care they need and deserve – not being used up on things like higher-than-average profits or inefficient management and administration.”

Read: NDIS accused of failing older Australians

Mr Yates added that while the fee caps were a step in the right direction, much more needed to be done to fix the aged care system and cautioned that dodgy providers may look to rort the new system.

“The issue isn’t just about price gouging or excess profits, it’s also about inefficiencies in how some providers operate,” he said. “The government needs to be awake to this and make sure we’re weeding out inefficient operators who refuse to move with the times.

“The government must also be alert to some providers trying to get around the caps by transferring fees to a loading on hourly service fees.

“We need full pricing transparency, and it must be compulsory for every provider, with penalties for non-compliance. Too many providers are still ignoring this obligation.”

Do you worry about the cost of aged care? Have you made any preparations to pay for your own future care? Let us know in the comments section below.

Brad Lockyer
Brad Lockyer
Brad has deep knowledge of retirement income, including Age Pension and other government entitlements, as well as health, money and lifestyle issues facing older Australians. Keen interests in current affairs, politics, sport and entertainment. Digital media professional with more than 10 years experience in the industry.


  1. Oh about time. It is ridiculous the amount of money these Providers take from the elderly plus they add on another 10% for any service provided by them.
    When you ask for something to be done to make things safe around your home they come back with “Oh I don’t think we can it is going to add value to your house”. How ridiculous. Do people forget the elderly paid taxes all of their lives and it is about time they were looked after.

- Our Partners -


- Advertisment -
- Advertisment -