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Aged Care Amendment (Making Aged Care Fees Fairer) 2021
✦ Plain-English Summary
# Aged Care Amendment (Making Aged Care Fees Fairer) 2021
## What it does
This bill caps how much aged care providers can charge older Australians for "admin fees" — the costs they claim for running the business rather than actual care. For lower-level home care packages, admin fees are capped at 25% of the total bill; for higher-level packages, it drops to 20%. Providers must also clearly separate admin costs from care costs on their bills, so you can actually see what you're paying for.
## Why it matters
Aged care is expensive and many older Australians are already stretched financially. Without these limits, providers could quietly load up bills with inflated admin charges that don't directly pay for your care. This makes it harder to know if you're getting decent value and limits how much providers can profit from overhead costs.
## Key details
- **Who's affected**: Anyone using home care packages (care at home rather than in a residential facility)
- **The splits**: Lower packages (levels 1-2) capped at 25% admin fees; higher packages (levels 3-4) capped at 20%
- **Implementation**: The bill hasn't started yet — it needs Parliament's approval and then a formal "commencement date" will be set (within 6 months of passing)
Official Description
Amends the Aged Care Act 1997 to: enable aged care recipients to access clear information regarding the administrative and management fees charged for home care services; ensure that home care charges are spent on home care services provided rather than on administrative or management charges for provision of those services; enable aged care recipients to exit a home care agreement without financial penalty; and access relevant information regarding the costs of home care packages by approved providers in their local area when looking to enter into a home care agreement.
Audit History
Last updated on APH
10 Apr 2026
Last checked by Crossbench
today
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