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Home care package - home care account and Commonwealth (CW) unspent funds 065-21081745




A summary of Home Care Packages Reforms relevant to CW unspent and Home Care Account

Date

Description

1 July 2014

  • Home Care Packages program commences
  • Services are paid subsidies monthly in advance
  • Services have 2 years to make any changes for current or departed care recipients
  • Commonwealth (CW) Unspent funds accrue from 1 July 2015 with the provider
    • Care recipient portion are fees paid by the care recipient
    • CW portion are home care subsidies that are paid to services
    • Transfer portion are funds that have been transferred from a previous service
  • When a care recipient departs care:
    • if a care recipient moves to a new service, the losing service transfers CW unspent funds to the new service (transfer portion)
    • if a care recipient does not move to a new home care service, CW unspent funds were returned
    • care recipient portion of CW unspent funds are returned to the care recipient (or their estate)

27 Feb 2017

  • Increasing choices in home care
  • Home Care packages become portable and care recipient can change services at any time
  • When a care recipient departs care:
    • if a care recipient moves to a new service, the losing service transfers CW unspent funds to the new service (transfer portion)
    • if a care recipient does not move to a new home care service, CW unspent funds were returned
    • care recipient portion of CW unspent funds are returned to the care recipient (or their estate)

1 Sep 2021

  • Management of unspent home care amounts changes
  • Funds held by providers are Commonwealth (CW) Unspent Funds (provider held) – providers could:
    • opt-in to Services Australia managing CW Unspent Funds as a draw-down amount, or
    • not opt-in, manage CW unspent funds and report the balance on each monthly claim
  • From 1 September, any unspent amounts will accumulate in the care recipient’s Home Care Account (HCA) which is held by Services Australia
  • When a care recipient departs care:
    • Any CW Unspent funds need to be returned within 70 days of departure, and are then transferred to the HCA
    • Transfers of CW Unspent funds between services ends
    • if a care recipient moves to a new service within 70 days, the HCA will transfer to new provider on Day 71
    • if a care recipient does not move to a new service within 70 days, the HCA is set to $0 and repaid to Services Australia
    • care recipient portion of CW unspent funds are returned to the care recipient (or their estate)
  • Services have 2 years to make any changes for current care recipients

Services now have 70 days to make any changes from a departed care recipient

1 Nov 2025

Support at Home implementation

If a care recipient transitioned from the Home Care Packages (HCP) Program, they retained their unspent funds for use in Support at Home for:

Services can use unspent HCP funds depending on the type: 

  • Provider-held participant portion (from collected HCP fees) – services can choose how to manage these funds, such as refunding to the participant. 
  • Commonwealth portion (from accrued HCP subsidy) – services must claim unspent funds in the following order: 
    • provider-held portion (CW Unspent funds) 
    • government-held portion (HCA) in an account by Services Australia. 

Services will need to return provider-held unspent funds to the agency if a care recipient changes provider or departs care.


Contact details

Aged Care

Services Australia website

How to view Home Care Accounts

External website

Department of Health, Disability and Ageing’s Improved payment arrangements for home care