What Is a Home Care Package?
A Home Care Package (HCP) is a government-subsidised program that provides funding to eligible older Australians to purchase in-home care services. There are four levels of packages, ranging from Level 1 (basic care needs) to Level 4 (high care needs), with annual funding amounts ranging from approximately $10,000 to $60,000.
To access an HCP, a person must be assessed by an Aged Care Assessment Team (ACAT) and placed on the national waitlist. As of 2026, wait times for higher-level packages can be 12 months or more. Once a package is assigned, the recipient chooses an approved provider to manage the funds and deliver services.
HCPs are means-tested, and recipients may be required to contribute to the cost of their care through an income-tested care fee and a basic daily fee. The package funds are managed by the approved provider, who charges administration and case management fees — which can consume a significant portion of the available funding.
What Is Private In-Home Care?
Private in-home care is care that you arrange and pay for directly, without going through the government funding system. You choose your provider, negotiate the services you need, and pay the agreed rate — typically an hourly or shift rate.
Private care is not means-tested, does not require an ACAT assessment, and is not subject to government waitlists. You can arrange it quickly — often within days — and you have complete control over who provides the care, when, and how.
Private care is funded entirely by the individual or their family. While this means there is no government subsidy, it also means there are no administration fees, no case management charges, and no bureaucratic constraints on how the care is delivered.
Key Differences at a Glance
| Factor | Home Care Package | Private Care |
|---|---|---|
| Funding | Government-subsidised | Self-funded |
| Eligibility | ACAT assessment required | No assessment needed |
| Wait time | Can be 12+ months | Can start within days |
| Provider choice | Approved providers only | Any provider you choose |
| Flexibility | Subject to package rules | Fully flexible |
| Admin fees | Yes — can be significant | None |
| Cost | Subsidised + co-contribution | Full cost, no subsidy |
Which Is Right for Your Family?
The right choice depends on your family's circumstances, financial situation, and how urgently care is needed.
Private care is often the better choice when: care is needed urgently; you want a specific, consistent carer; you need flexibility in scheduling; or you want to avoid the administrative complexity of the government system.
A Home Care Package may be more appropriate when: the person has limited financial resources; the level of care needed is high and ongoing; and the family has time to navigate the assessment and waitlist process.
Many families use private care while waiting for a Home Care Package to be assigned — and some continue with private care even after receiving a package, because they value the flexibility and consistency it provides.
Talk to Us About Your Options
Serenity Companions provides private in-home care across Melbourne's South East and Bayside. We're happy to discuss your family's situation and help you understand whether private care is the right fit — with no obligation.