Update: Improved Payment Arrangements Budget Measure

Press Release : Friday 20 February 2021

Transitional financial assistance for eligible home care providers

Following the passage of legislation to implement phase 2 of the improved payment arrangements in home care earlier in February, grants will be available to eligible home care providers to assist with the transition to the new arrangements.

In accordance with recommendations made by the Aged Care Financing Authority in its report to Government on these changes, financial assistance is targeted at small providers in remote areas.

For further information on the grant please contact IPA.grants@health.gov.au.

Additional information

On 2 February, the Government passed Bill 2 Aged Care Legislation Amendment (Improved Home Care Payment Administration No. 2) Bill 2020.

This Bill supports the start of Phase 2 of the Improved Payment Arrangements measure.

Information about the Improved Payment Arrangements changes:

Phase 1 (Bill 1)

  • From 1 February 2021, providers are funded in arrears rather than in advance.
  • Payments for February 2021 will be claimed in March 2021, for the full subsidy, based on the number of care recipients in care during February 2021.

Phase 2 (Bill 2)

  • From 1 September 2021, providers will be paid in arrears, based on actual care and services delivered.
  • The Government will collect and hold the Commonwealth portion of unspent funds, in each care recipient’s home care account, until needed by the care recipient.

Fact sheets

IPA Fact Sheet for Care Recipients

IPA Fact Sheet for Providers

Information about Phase 2 arrangements, including changes to unspent funds, will be provided as soon as possible.

Department of Health


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