Can a provider charge a separate administration fee?

Can a Support at Home provider charge a separate administration fee?

Generally, no.

For ordinary ongoing Support at Home services, providers cannot add a separate administration, package-management, travel or booking fee on top of the agreed service price.

The provider’s service price should already include the normal costs of delivering the service, such as:

• administration

• human resources

• rostering

• worker screening

• travel

• subcontracting

• insurance

• business overheads

• a reasonable operating margin.

For example, if domestic assistance is agreed at $110 an hour, the provider should not ordinarily charge:

• $110 for domestic assistance

• plus a separate $10 administration fee.

The administration cost should already be incorporated into the agreed $110 unit price.

However, specific additional charges are permitted in two situations.

Exception 1: Self-managed third-party workers

A participant who self manages may ask their registered Support at Home provider to engage a worker or organisation the participant has found themselves.

The registered provider remains legally responsible for the quality, safety and compliance of services delivered by that third party. It may therefore need to:

• check the worker’s suitability

• complete screening and onboarding

• ensure the worker understands complaints and incident procedures

• verify invoices

• submit claims to Services Australia

• pay or reimburse the third-party worker

• maintain oversight of service quality and safety.

Where the participant has directly sourced the third party worker and is self managing the service, the provider may apply an overhead of up to 10% of the actual third-party service cost.

However, this overhead:

• is capped at 10%

• must be proportionate to the work the provider performs

• must be agreed with the participant

• must be included in the final service price

• cannot be claimed as a separate standalone administration charge.

Self-management example

Suppose a participant finds their own cleaner, who charges $70 an hour.

The registered provider may apply an overhead of up to $7, making the final Support at Home service price:

$77 an hour

The statement should show the final agreed service price. It should not ordinarily show:

• cleaning: $70

• separate administration fee: $7.

The participant contribution is calculated using the final service price.

When does the 10% cap apply?

The cap applies only where:

• the participant directly sourced or selected the third-party worker

• the participant is genuinely self managing that service

• the registered provider is supporting and overseeing the arrangement.

It does not automatically apply merely because the provider uses subcontractors.

If the provider independently chooses to subcontract the service as part of its normal delivery model, the total subcontracting and administration costs should be built into its ordinary service price. The provider cannot describe every subcontracted service as self management to justify an additional fee.

Does self-management replace the 10% care-management allocation?

No.

People who self-manage still have 10% of their ongoing quarterly classification budget allocated to pooled care management.

The self-management overhead is different:

• Care-management allocation: 10% of the participant’s ongoing quarterly budget, pooled by the provider.

• Self-management overhead: up to 10% of the cost of a participant-sourced third-party service.

A self-managed participant may therefore have both arrangements applying. The provider must still deliver care management, including direct care-management activity each month.

Exception 2: Assistive Technology and Home Modifications

Separate administration and coordination costs are permitted under the Assistive Technology and Home Modifications Scheme, commonly called AT-HM.

These costs are paid from the participant’s separate AT-HM funding allocation not from the provider’s pooled care management account.

Assistive technology administration

A provider may charge for administration involved in supplying assistive technology, including:

• liaising with equipment suppliers

• obtaining quotes

• purchasing approved products

• organising delivery

• arranging setup and other wrap-around services.

The administration charge is capped at:

10% of the cost of the assistive technology item or item bundle, or $500—whichever is lower.

For example, if approved equipment costs $2,000, the maximum administration charge is $200.

If the equipment costs $8,000, 10% would be $800, but the maximum charge remains $500.

Home-modification coordination

A provider may also charge for coordinating approved home modifications.

This may include:

• project management

• organising contractors

• seeking building or council approvals

• coordinating quotes

• managing subcontractor invoices

• monitoring the modification process.

The coordination charge is capped at:

15% of the total quoted cost of the home modification, or $1,500 whichever is lower.

For example, if a modification costs $6,000, the maximum coordination charge is $900.

If the modification costs $15,000, 15% would be $2,250, but the maximum charge is $1,500.

AT-HM charges must be itemised and agreed

The provider must document and agree the AT-HM costs with the participant before committing the funding.

The records should separately identify:

• the equipment or modification

• prescriptions or assessments

• delivery, setup or training

• other wrap-around services

• administration or coordination

• the participant contribution.

The total claimed for each element should not exceed the relevant invoice, and the administration or coordination component must remain within the applicable cap.

AT-HM care management is different

Some preliminary work may be ordinary care management, such as:

• discussing the participant’s need for equipment

• reviewing the support plan

• adding approved AT-HM needs to the care plan

• making a referral to an occupational therapist.

Those activities may be funded through care management.

However, the practical work of sourcing, purchasing and coordinating the AT-HM item is claimed from the participant’s AT-HM funding under the capped administration or coordination arrangements. The provider cannot claim the same activity from both funding sources.

What separate fees are not permitted?

For ordinary Support at Home services, be cautious about charges described as:

• package-management fee

• monthly administration fee

• account-management fee

• invoice-processing fee

• scheduling fee

• payroll fee

• travel surcharge

• subcontractor administration fee

• membership fee

• platform fee.

These costs should generally be incorporated into the provider’s agreed unit prices unless they fall within one of the specific self-management or AT-HM exceptions.

What should I ask the provider?

Ask:

1. Is this cost already included in the service price?

2. What Support at Home rule permits it to be charged separately?

3. Is it a self-management overhead or an AT-HM administration or coordination charge?

4. How was the amount calculated?

5. What activities is the provider performing in return?

6. Is the charge within the applicable cap?

7. Was it agreed before the service or purchase?

8. Which funding account is being charged?

9. Is the same activity also being claimed as care management?

Ask for the explanation and calculation in writing.

The practical answer is:

What should I do next?

1. Write down the services, times and practical outcomes you need.

2. Ask at least two providers for written prices and an example service schedule.

3. Check the agreement, local availability and worker backup arrangements before signing.

Helpful Local Home Help resources

• How much does Support at Home cost?

• Browse aged care cost articles

• Find home care providers

Check the official guidance

Check current official costs and pricing guidance. Aged care rules, funding amounts and program guidance can change, so check the current official information before making an important care or financial decision.