Some of Australia’s largest home care providers have started releasing their updated Support at Home pricing, and the increases are raising eyebrows.

In one example, a provider has lifted their hourly cleaning rate from $71 to $105. That’s a 48% jump!

So, what’s driving these price hikes?

Are we seeing the aftershocks of long-standing pricing models built around protected markets and uncapped service fees?

Could this be a reaction to the upcoming cap on care management fees, which will be limited to 10% of the government subsidy under Support at Home?

Or is this simply a case of internal inefficiencies finally catching up?

Let’s break it down.

Hiring a cleaner in the open market costs providers around $45 per hour. That includes:

Base wage (approx. $38/hour for a casual cleaner)

Superannuation

Insurance and WorkCover

So why are some providers charging more than double this rate?

It’s not about price gouging. What we’re likely seeing is a symptom of deeper structural issues:

Many large providers have grown up with complex, layered management structures

Instead of streamlining operations, they’re recouping overheads through inflated service prices

This isn’t a sustainable model. It’s becoming more obvious as Support at Home introduces greater transparency and tighter rules.

Before the Support at Home rollout, here’s what some of the bigger names are charging for cleaning services:

Between $78 and $89 per hour, depending on the provider

So, while some may still offer reasonable value, others are trending well above what would be considered industry benchmarks.

With rising costs and inconsistent pricing, it’s no surprise the government is flagging national price caps by 2026.

There’s growing concern that large providers won’t be able to shrink their head offices fast enough to remain competitive, or to align with the new market driven reality Support at Home is trying to create.

We’ll continue to monitor pricing trends as more Support at Home rates are released across the sector. While it’s early days, some pricing patterns are raising red flags. Greater transparency is clearly needed, not just in cleaning services, but across care management, nursing, and other vital areas of home care.

Clients deserve clarity. Providers must deliver value. And the sector needs to evolve, because the future of aged care depends on it.

Ross McDonald

CEO of Local Guardians, champions independent home care putting funding back in the hands of older Australians.

Julie Conlon
01/09/2025 at 2:31 pm

It’s not only cleaning. We have a HCP with Uniting for my partner who has Alzheimers. We also attend a local Seniors Gym run by Uniting. Prior to the HCP my partner had subsidised one on one gym session $25per hour. Under the HCP she is charged $135ph for the same service. She attends twice weekly.

I did sign the agreement knowing this & since raised the issue with the gym & provider. They do state it on the gym’s list of Fees.

I do appreciate $25 per session was cheap but there appears a big discrepancy as to what our package is charged.

We also have cleaning & companionship included in our day package.

Thanks for your Newsletter it is most informative.

Sue McIntosh
02/09/2025 at 6:12 pm

Greater transparency is definitely needed across the board with services. Currently, for example. my mother’s HCP is charging $87ph for cleaning. While this is barely tolerable, if the actual cleaner was only getting paid around the $45-$55ph, the provider is making over 60% margin…that’s a very expensive business margin that unfortunately the government is paying for, instead of helping fund more aged care packages to other older Australians. The government NEEDS to tighten the reins of these providers.