Personal Financial Contributions to a Home Care Package

Home Care Packages are funded by both government subsidies and personal contributions, often called income-tested fees, means-tested fees, or simply “fees.” These fees are communicated to recipients by the government (e.g. through Centrelink).

To ensure service providers and carers are paid weekly (Local Guardians standard terms) we manage personal contributions as follows:

1. Payment Process: Clients are charged via direct debit, calculated within the care plan budget, every two weeks, 14 days in advance. Unused payments are refunded at the end of the care package or as needed.
2. Direct Debit Requirement: A functioning direct debit is essential for the package to stay active. Without it, service providers cannot be paid, and unpaid invoices become the client’s responsibility.
3. Failed Payments: If a payment fails, the bank notifies Local Guardians, who then alert the client’s Care Advisor. The Care Advisor contacts the client immediately to understand the root cause of the issue and resolve with a new direct debit.

If ongoing payment issues are identified or there is a repeat occurrence, the Care Advisor will consult with management to explore options such as:

– the client disputing Centrelink assessments
– applying for a government hardship allowance
– modifying the existing management of the private bank account (ie overspending). This could include a formal (power or attorney, public trustee) or informal (relative, friend), helping with personal finance management; or
– informing unpaid service providers to privately invoice the client, and closing the package.