Why Aged Care Bookkeeping Needs a Specialist
Aged care providers face a combination of funding complexity, payroll compliance obligations, and GST issues that most general bookkeepers are not equipped to handle. The combination of Home Care Package subsidies, CHSP block grants, client contributions, and the Aged Care Award creates a level of complexity that requires someone who knows the sector.
True Tally works with aged care and allied health businesses across Melbourne and Victoria. We understand HCP reconciliation, CHSP funding reporting, and the Aged Care Award payroll — and we build these workflows into Xero correctly from the start.
The Bookkeeping Complexity in Aged Care
- Home Care Package reconciliation — HCP subsidies must be tracked per client, separate from client contributions, and unspent balances held and reported monthly
- CHSP funding tracking — block grants must be tracked by service type (domestic assistance, personal care, allied health, transport) for compliance reporting
- GST-free income — most aged care services are GST-free, but some optional extras may be taxable. Xero must be configured with the correct GST treatment for each service type.
- Aged Care Award payroll — multiple classification levels, shift penalties (evening, night, weekend, public holiday), sleepover allowances, and the pay equity increases from the FWC decision
- BAS accuracy — GST-free funding creates low taxable revenue relative to staff expenses, so input tax credits are important. BAS must be prepared carefully to claim all GST on purchases.
Home Care Package & CHSP Bookkeeping
HCP reconciliation
Home Care Package subsidies tracked per client, separate from income-tested fees and basic daily fees. Unspent HCP balances tracked monthly and reported to clients. True Tally builds this workflow in Xero for Victorian aged care providers.
CHSP funding
Commonwealth Home Support Programme block grant income tracked by service type — domestic assistance, personal care, social support, transport, and allied health — to meet DoHAC reporting obligations.
Aged Care Award payroll
Complex shift penalties, sleepover allowances, multiple classification levels, and the FWC pay equity increases — configured correctly in Xero Payroll with STP Phase 2 reporting and super lodged quarterly.
Services for Aged Care Providers
- Xero setup for aged care — chart of accounts with HCP, CHSP, and client contribution accounts; correct GST codes; bank feeds and payroll configuration
- HCP and CHSP reconciliation workflows — structured monthly process to track funding by program and client
- BAS lodgement — prepared correctly, lodged on time with agent extension dates, full input tax credit claims
- Payroll & STP — Aged Care Award compliance, shift penalties, STP Phase 2, and super before deadlines
- Monthly financial reports — P&L by program and service type, balance sheet, and cash flow by the 15th of each month
Is Your Aged Care Organisation's Bookkeeping Set Up Correctly?
The True Tally allied health financial audit identifies risks in your HCP reconciliation, CHSP funding tracking, GST compliance, and payroll setup. Free, takes five minutes.
Start Free AuditOr book a free 20-minute call: calendly.com/truetally
Frequently Asked Questions — Aged Care Bookkeeping
Are aged care services GST-free?
Most aged care services are GST-free — home care, personal care, nursing, and residential care. However, some optional extras provided to self-funded retirees on a fee-for-service basis may be taxable. True Tally configures Xero with the correct GST treatment for each service type in your organisation.
How do Home Care Package funds need to be tracked?
HCP subsidies must be tracked per client and held separately from client contributions. Unspent HCP balances must be reported to clients monthly and managed as a liability. True Tally builds HCP reconciliation workflows in Xero that track subsidies, contributions, and unspent balances per client — giving you the data you need for client statements and compliance reporting.
How complex is Aged Care Award payroll?
Very complex. The Aged Care Award has multiple employee classifications, evening and night penalties, weekend and public holiday rates, sleepover allowances, and specific provisions for casuals and part-time staff. The FWC pay equity decision also introduced significant increases that must be correctly applied. True Tally sets up Xero Payroll for aged care providers with all award obligations correctly configured.
What is the True Tally allied health financial audit tool?
The True Tally allied health financial audit at tracker.truetally.com.au is a free five-minute self-assessment for aged care providers and allied health businesses. It identifies risks in your funding reconciliation, GST compliance, payroll configuration, and financial reporting — and gives you a personalised report.
Ready for an Aged Care Bookkeeper Who Understands the Sector?
Book a free 20-minute call or take the free financial audit to identify risks in your current setup.
Free Financial Audit Book Free CallCall · 0468 159 950 · info@truetally.com.au