Aged care in Australia is undergoing its most significant changes in decades.
In addition to a new rights-based Aged Care Act, the sector will transition to a new in-home care system designed to improve services and support for older people. Here are some of the most important updates you need to know.
What is happening to aged care in Australia?
The Support at Home program will replace Home Care Packages and the Short-Term Restorative Care Programme from 1 July 2025. The Commonwealth Home Support Program (CHSP) will transition to Support at Home no earlier than 1 July 2027.
Why is Support at Home happening?
Issues raised by the Royal Commission into Aged Care Quality and Safety called for major reform. With the Support at Home changes, older people in Australia will have more access to services, equipment, and home modifications so they can live independently for longer.
What is not changing with Support at Home?
A lot will change when the Support at Home program replaces Home Care Packages. Before we address those changes, let’s briefly cover a few important details that will stay the same:
- Current Home Care Package recipients will not pay more for their care. All Home Care Package recipients will automatically transition into the Support at Home program on 1 July and receive a Support at Home budget that matches their Home Care Package (including Australians on the National Priority System).
- Assessments will still determine funding allocation. Like with Home Care Packages, assessments will be the first step in securing aged care services under Support at Home. You can apply for an assessment via the My Aged Care website or by calling 1800 200 422. Re-assessment will not be necessary for existing Home Care Package recipients.
- The Commonwealth Home Support Program (CHSP) isn’t transitioning to Support at Home until 2027, so in-home care funded by CHSP will remain the same. Home care recipients with lower-level needs will continue to use CHSP until that time.
Support at Home vs. Home Care Packages: What is changing?
Now, let’s break down some key Support at Home changes when the new program replaces Home Care Packages in 2025.
Levels of Care
Home Care Packages
There are four levels of care in the Home Care Package program:
• Level 1: Basic Needs
• Level 2: Low-Level Needs
• Level 3: Intermediate Needs
• Level 4: High-Level Needs
Maximum funding per person is $61,440 (Level 4).
Support at Home
Eight levels of support will be available under the Support at Home program along with two new short-term care pathways (Restorative Care and End-of-Life).
Maximum funding per person is $78,000 (Level 8).
Service Categories
Home Care Packages
The current Home Care Package system includes a list of specific types of care:
Bathing and Hygiene, Nursing, Physiotherapy and Podiatry, Meals and Food Prep, Help with Impairments and Incontinence, Cleaning and Chores, Home or Garden Maintenance, Changes to My Home, Aids to Stay Independent, Transport, Social, and Respite.
Support at Home
Support at Home will feature a definitive list of government-subsidised services grouped into three categories:
1. Clinical Care (such as nursing and physiotherapy)
2. Independence (such as personal care)
3. Everyday Living (such as cleaning and gardening services)
Each category will have its own service types and participant contribution arrangements, creating more transparency about what is and isn’t covered.
Clinical Services
Home Care Packages
Home Care Packages can be used for clinical services, though care recipients may need to contribute out-of-pocket funds to cover costs.
Support at Home
The government will fully fund clinical care for all Support at Home participants, including nursing care, allied health and other therapeutic services.
Pricing
Home Care Packages
With Home Care Packages, home care providers determine pricing for their services and can charge separate fees (such as basic daily fees and setup and exit fees). They can also charge up to 35% of the value of the package for care and package management fees.
Support at Home
Starting 1 July 2026, the government will set price caps for each service type and home care service providers will not charge prices over those caps. Price caps will encompass the full cost of service delivery, including administration costs, meaning providers won’t be able to charge separate entry, exit, or administration fees.
Note: Providers will charge up to a 10% care management fee to fund ongoing care management services.
Participant Contributions
Home Care Packages
Participant contribution towards a Home Care Package could be made up of the following fees:
1. Basic Daily Fee – Up to $13.08 per day or $4,774 annually
2. Income-Tested Fee – Up to $18.77 per day for participants determined to have the means
3. Additional service fees charged by the provider
Support at Home
Broadly speaking, Support at Home participants with financial means will contribute more to their cost of care. The government will continue to subsidise health-related costs, but your contribution will depend on your income, your assets based on an Aged Pension means test, and the category of your services.
There will be three service categories:
1. Clinical Care – The government will cover 100% of costs
2. Independence Supports – Recipients will contribute 5–50%
3. Everyday Living – Recipients will contribute 17.5–80%
Existing Home Care Package recipients who do not pay an income-tested care fee will continue with no such fees under Support at Home.
Assessment System
Home Care Packages
Under the Home Car Package scheme, care recipients are assessed by multiple organisations depending on their needs including the Regional Assessment Service (RAS), Aged Care Assessment Teams (ACAT), and the Australian National Aged Care Classification (AN-ACC).
Once approved for home care, recipients may have to switch to different assessors as their needs evolve.
Support at Home
The Single Assessment System Workforce will bring together assessors from RAS, ACAT, and AN-ACC and effectively replace those organisations.
Under the new arrangement, Needs Assessment Organisations will provide the entire scope of assessments, including clinical and non-clinical. In other words, there will no longer be dedicated organisations for different types of care—the same organisation will provide all the necessary assessment services.
Budget Allocations
Home Care Packages
A Home Care Package provides a set amount of money allocated as an annual budget for the entire year.
Support at Home
With the Support at Home changes, annual subsidy amounts will be divided into four equal quarterly budgets with each covering three months of the year. If you don’t spend your entire budget within a given quarter, you can move unspent funds of up to $1,000 or 10% of your quarterly budget—whichever is greater—between quarters to meet unplanned needs.
Assistive Technology & Home Modifications Funding
Home Care Packages
Care recipients accumulate and use funds from their Home Care Package budget to secure technology and home modifications.
Support at Home
The new AT-HM scheme will provide immediate and separate funding, meaning you will not have to accumulate or ‘save up’ funds to pay for this support.
There will be three funding tiers for Assistive Technology and three tiers for Home Modifications (Low, Medium, and High), and funding will range from $500 to $15,000 depending on your tier.
Short-term Support
Home Care Packages
In the Short-Term Restorative Care Programme (STRC), older people can get up to eight weeks of support to reverse or slow functional decline and avoid long-term care.
Support at Home
The new Restorative Care pathway will expand upon existing arrangements under STRC by increasing support from eight weeks to 12 weeks. If approved, you will receive a budget of approximately $6,000 for the 12-week episode.
End-of-Life Care Pathway
Home Care Packages
End-of-life care does not exist under Home Care Packages and does not have dedicated funding.
Support at Home
This new pathway provides urgent access to additional services in the last three months of life for care recipients who prefer to remain at home during that time.
A total of $25,000 will be available per eligible participant over those three months, with a total of 16 weeks to use the funds for additional flexibility.
Wait Times
Home Care Packages
As of March 2024, wait times for Home Care Packages are:
• 3-6 months (Level 1)
• 6-9 months (Level 2)
• 9-12 months (Level 3)
• 12-15 months (Level 4)
Support at Home
Under Support at Home, the goal is for wait times to progressively reduce over the next two years.
In the meantime, if wait times for services exceed expectations, you will be assigned an interim allocation of your Support at Home classification budget while you wait to receive your full funding. The allocation will be 60% of your budget, and the remaining 40% will be allocated when funding is available.
Prepare for Home Care Changes
Our team at The CareSide is already helping care recipients and their families understand Support at Home changes and what will be different in the months ahead. If you have questions about the Support at Home service list, Support at Home pricing, or how the transition will impact your home care, please call us at 1300 85 40 80 or fill out a quick website form and we’ll be in touch.
We can also provide guidance on how to apply for and secure a Home Care Package before the transition. If you are approved for a package before 1 July, your care costs will be based on the current Home Care Package system even after the switch to Support at Home. Contact us today to learn more.
