In-home aged care’s administration fees to be capped amid gouging fears

Administration fees for in-home aged care packages will be capped under new federal reforms, after concerns some providers are "gouging" clients with charges of up to 60%.

Aged care advocates have welcomed the change, saying some providers were overcharging or using inefficient practices, and that more transparency on pricing would further lower prices.

"The issue of those fees is one of the highest areas of complaint for consumers and families - it needed to be addressed," Ian Yates, chief executive of the Council on the Ageing, said.

"It's clear we have providers charging unacceptable levels, not being efficient, or setting a profit margin then working the rest out from there."

The aged care minister, Anika Wells, will announce on Thursday that the government intends to cap fees on home care at 20% for care management and 15% for package management. The government will also ban fees for recipients exiting or switching their package.

Providers will also be banned from charging separate brokerage and subcontracting fees. Wells said more than 37,000 people would now face no charges for changing service providers or exiting the program.

Wells said in August that a review into home care found fees varied widely, with some recipients paying 60% for care management, or 30% for package management. Some providers charged fees for recipients exiting their package or processing invoices.