Home Care Package vs Private Pay: Pros and Cons
June 11, 2026
Government funded or private? Here is how both options work, what each costs, and how families use them together.
Two ways to pay for home care. One is government funded. One is not. Most families do not realise you can use both.
Government funded home care
Your elderly parent applies through My Aged Care, gets assessed, and receives an annual aged care budget based on their needs. An approved aged care provider then delivers the home care services.
| Pros | Cons |
|---|---|
| Lower out of pocket home care costs | Can take weeks or months to access |
| Broad range of aged care services covered | Must go through My Aged Care assessment |
| Government subsidises most of the cost | Must use an approved aged care provider |
| Covers personal care, nursing care at home, domestic assistance, respite care, dementia support, medication management, allied health | Home care services must align with assessed aged care needs |
| Ongoing, long term aged care at home | Administration and care management fees come from home care budget |
Private home care
Your parent contacts a home care provider directly, discusses what personal care, nursing care at home, domestic assistance, or other aged care at home services they need, and care starts when they are ready.
| Pros | Cons |
|---|---|
| No assessment, no queue, no waiting | Your parent pays the full cost of every home care visit |
| Home care can start within days | No government subsidy |
| Same home care services available | Hourly rates add up quickly for higher aged care needs |
| Fewer restrictions on how the budget is spent | Not sustainable long term for older Australians with complex needs |
| Choose any home care provider across Melbourne, regional Victoria, or Tasmania | No government oversight unless provider is also approved |
Choose government funded home care if
Your parent can wait a few weeks for aged care services to start. You want lower out of pocket home care costs with government subsidy. Your parent has been assessed through My Aged Care and qualifies for a Home Care Package or Support at Home funding. You are looking for ongoing, long term aged care at home from an approved aged care provider.
Choose private home care if
Your parent needs home care now and cannot wait for a government assessment. You need to bridge the gap while waiting for Home Care Package or Support at Home funding. Your elderly parent wants more flexibility in the type and timing of home care services. You want to top up government funded aged care with additional personal care, domestic assistance, or companionship visits.
Using both together
This is what most families do not know. You can combine government funded and private home care.
Many families start with private in home care while waiting for their Home Care Package or Support at Home funding to come through. Once the government funding is approved, the home care services transition to the funded model. Your parent keeps the same aged care provider, the same care worker, and the same continuity of care.
Other families use their Home Care Package for core aged care services like personal care and nursing care at home, then top up with private home care for additional domestic assistance, companionship, or extra home care visits their aged care budget does not stretch to cover.
Chris Barnard Health offers both
Chris Barnard Health is an approved aged care provider and registered NDIS provider delivering government funded and private home care services across Melbourne, regional Victoria, and Tasmania. Our aged care specific workforce of more than 1,000 aged care professionals means your parent can start with private home care and transition to funded aged care without changing providers, carers, or routines.
Call 1300 602 469 and we will walk you through both options clearly. It is what Melbourne’s leading and largest aged care specific workforce was built for. So your parent gets the right home care, funded the right way, without the confusion.