What happens to my unspent home care funds if I go into hospital or pass away?
Support at Home budgets do not operate like a personal bank account. Limited unspent quarterly funding may carry over, subject to program rules. Former HCP unspent funds may be treated differently. If you die, unused government funding is returned rather than forming part of your estate.
Key points
- The budget is for approved care, not a personal cash balance.
- Carry-over is limited and transition funds have separate rules.
- Ask for an up-to-date budget statement.
What happens depends on whether you are temporarily pausing services-for example, during a hospital stay-or permanently leaving Support at Home.
It also depends on whether the balance is:
current Support at Home funding
unspent government funding carried over from an old Home Care Package
money you personally contributed under the former Home Care Packages system.
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01Guide sectionIf you go into hospital
A hospital admission does not automatically end your Support at Home approval or funding.
Tell your provider as soon as possible so it can:
pause services you will not need
cancel scheduled visits
avoid unnecessary cancellation charges
continue any services still required at home
plan support for your discharge
update your care plan if your needs have changed.
Some services may continue while you are in hospital if you agree they are still useful-for example, gardening or preparing the home for your return. Your provider should continue issuing monthly statements even when few or no services are delivered.
02Practical actionDoes my budget continue while I am in hospital?
Yes. If you temporarily stop services, your ongoing quarterly Support at Home budget continues to be allocated.
However, the normal carryover limit still applies. At the end of a quarter, you can generally carry forward whichever is greater:
$1,000
10% of your quarterly budget.
Any unused current-quarter funding above that limit does not continue building up for later use.
For example, suppose you are in hospital for most of a quarter and finish with $4,000 unused.
If 10% of your quarterly budget is less than $1,000, only $1,000 would generally carry into the next quarter. The remaining unused allocation would not become a personal balance that you can save indefinitely.
03Guide sectionWhat if the hospital stay is long?
If you receive no Support at Home services for four consecutive quarters-one year-your ongoing funding may be withdrawn.
You should receive reminders before this happens. If funding is withdrawn and you later need services again, you will need to contact My Aged Care.
A brief or ordinary hospital stay does not normally trigger this rule.
04Guide sectionCan Support at Home pay for services while I am in hospital?
Support at Home generally does not pay for care that the hospital is responsible for providing during your admission.
It may still pay for agreed services connected with your home or discharge where those services:
are approved
remain necessary
are not already funded by the hospital or another program
are agreed with your provider.
Your care partner should work with the hospital discharge team to avoid duplication and organise appropriate services for when you return home.
05Guide sectionWhat happens when I return home?
Tell your provider and care partner your likely discharge date as early as possible.
Ask them to confirm:
when regular services will restart
whether workers are available
whether temporary extra help is needed
whether nursing, personal care or allied health needs have changed
whether your existing support plan is still adequate.
If the hospital admission has caused a significant change in mobility, cognition, personal care or clinical needs, your care partner can help request a Support Plan Review or reassessment.
06Guide sectionWhat happens if the participant passes away?
Support at Home ends on the date of death.
The provider must:
update the person’s My Aged Care record
notify Services Australia
stop delivering and claiming for new services
finalise claims for services delivered before the date of death
issue final contribution invoices where applicable
provide a final monthly statement.
Providers generally have 60 days after the date of death to finalise valid outstanding claims. They cannot charge an exit fee.
07Guide sectionDoes unused Support at Home funding go to the estate?
No. Ordinary Support at Home funding is government funding allocated for approved aged care services. It is not the participant’s personal money and does not form part of their estate.
After valid outstanding claims are finalised, any unused government allocation is no longer available for services and is not paid to family members or beneficiaries.
Any unpaid participant contribution for services genuinely delivered before death may still appear on the final invoice.
08Guide sectionWhat about unspent funds from an old Home Care Package?
Different rules may apply to people who transferred from the former Home Care Packages Program with an existing unspent balance.
That balance can include two different components.
Commonwealth portion
This is unused government funding.
If the participant dies:
any provider-held Commonwealth portion must be returned to Services Australia
it is not paid to the estate.
Participant portion
This is money previously paid by the participant-for example, through fees or contributions-and retained as part of the old package balance.
Any remaining participant portion held by the provider must be refunded to the participant’s estate after final claims and invoices are dealt with.
Where probate or letters of administration are required, the provider may need those documents before releasing the money to the estate. The program manual states that payment should occur within 14 days after the provider has been shown the relevant probate or administration documents.
09Guide sectionPractical example
Suppose a transitioned Home Care Package participant dies with:
$2,000 remaining in the current Support at Home quarterly allocation
$5,000 in old Commonwealth-funded Home Care Package funds
$600 remaining from fees the participant personally paid into their former Home Care Package account.
After valid final claims are processed:
the unused current Support at Home allocation does not go to the estate
the remaining Commonwealth-funded $5,000 returns to the government
the remaining $600 participant portion is refunded to the estate.
10Guide sectionWhat should the family or representative request?
Ask the provider for:
confirmation of the recorded exit date
a final statement of services and claims
details of any outstanding participant contributions
a breakdown of any old Home Care Package balance
identification of the Commonwealth and participant portions
confirmation of any amount refundable to the estate
an explanation of the documents needed before payment.
The practical distinction is:
During a hospital stay, funding can continue, but normal quarterly rollover limits still apply. After death, ordinary government-funded balances return to the aged care system; only a genuine participant-funded portion from an old Home Care Package may be refundable to the estate.
11Guide sectionWhat should I do next?
Ask your provider for a current budget statement and a written explanation of how your transitioned funds, carry-over balance and any hospital leave will be handled.
12Guide sectionHelpful Local Home Help resources
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