Classification 1 vs 2: what the extra funding buys
Last updated 21 August 2026
Budget figures current as at the 1 July 2026 indexation (2026-27); median hourly prices from the mid-2026 National Summary of Support at Home Prices.
The short version
- Classification 2 is worth $5,441.34 more a year than Classification 1 - $16,451.35 against $11,010.01.
- In practice that’s roughly an extra hour of help every week at national median prices, once the 10% care management cap is set aside.
- Both are entry levels for people who are largely independent. The assessor’s judgement is about how many parts of your week need support, not whether you “deserve” more.
- Your contribution percentages are identical on both levels - the classification changes the budget, not what you pay per hour.
The two budgets side by side
| Measure | Classification 1 | Classification 2 | The gap |
|---|---|---|---|
| Quarterly budget | $2,752.50 | $4,112.84 | +$1,360.34 |
| Annual budget | $11,010.01 | $16,451.35 | +$5,441.34 |
| Weekly amount for services, after the 10% care management cap | about $190 | about $285 | about $94 more |
| Indicative hours a week at median prices | around 1.5 | around 2.5 | about 1 hour more |
Hours are indicative, based on national median prices of roughly $110-$118 an hour for common services such as cleaning, personal care and safety gardening. Providers set their own prices, so your hours will vary. See typical hourly rates.
What the gap means in real life
Around $94 a week of extra service budget doesn’t sound dramatic, but at these light-touch levels it changes the rhythm of the fortnight. Concretely, the difference could fund:
- Cleaning every week instead of every fortnight - an extra 45-50 minutes of domestic assistance a week at the $110 median.
- A regular social support outing - close to an hour most weeks (around $111 an hour) for shopping trips or getting to appointments, on top of an unchanged cleaning roster.
- Safety gardening each fortnight plus a small cleaning top-up - lawns and paths kept safe (around $118 an hour) with change left over.
Why you’d be assessed one rather than the other
Both levels come out of the same Single Assessment, using the Integrated Assessment Tool at your home. Classification 1 tends to fit people managing well with help in a single area - usually the housework or the garden. Classification 2 tends to reflect a second area of need creeping in: the shopping run is getting harder, or you’re avoiding outings without someone alongside. The assessor is scoring across daily activities, health and safety, and how much informal help family already provides - not just the one task you called about. How the assessment works.
If you were assessed at 1 and your weeks look more like the description of 2 - or things have changed since the assessor visited - you can request a free reassessment through My Aged Care at any time. If you transitioned from an old Home Care Package, you also carry “upgrade only” protection: a reassessment can move your funding up, but it can’t drop below your HCP-equivalent budget.
Classification 1 and 2 have identical contribution rules. Clinical care is free on both; the same means-tested percentages apply to independence and everyday living services on both. Moving up gives you a bigger budget - it never changes the percentage you contribute. How contributions are calculated.
Not sure your level matches your needs?
Tell us what a normal week looks like. We’ll help you understand whether your classification fits - and which providers near you make a small budget go furthest.
Common questions
I was given Classification 1 but I think I need 2. What now?
First check your Notice of Decision against what you told the assessor. If your needs weren’t fully captured, or they’ve grown since the visit, request a free reassessment through My Aged Care (1800 200 422). It costs nothing and doesn’t put your current services at risk - especially if you came from a Home Care Package, where upgrade-only protection applies. How reassessment works.
I had an old HCP Level 1 - which of these am I on?
Former package holders were transitioned automatically on 1 November 2025 with a budget equivalent to their old level - HCP Level 1 was worth $10,986.50 a year at transition, almost identical to Classification 1’s $11,010.01. When you’re next reassessed you move onto the new eight-level scale, with funding that can only go up, not down. Compare the two systems.
Would I pay more per hour on Classification 2?
No. Your contribution percentage is set by your means assessment and the service category, not by your classification. A full pensioner pays 5% on independence services and 17.5% on everyday living services whether they’re on level 1 or level 2 - a bigger budget simply means more hours are funded. Contributions explained.
Sources
- Department of Health, Disability and Ageing - Support at Home program classifications and budgets, 1 July 2026 indexation.
- Support at Home Program Manual - classifications, assessment and care management cap.
- Department of Health, Disability and Ageing - National Summary of Support at Home Prices (median service prices), 2026.
- My Aged Care, myagedcare.gov.au - Support at Home program and reassessment guidance, accessed 21 August 2026.