Top 5 Funding Changes Under Support at Home

1. Introduction of quarterly budgets

One of the most practical changes under Support at Home is the move to quarterly budget allocations. Annual ongoing Support at Home budgets will be broken into three-month budgets, providing a more manageable approach to care planning and spending throughout the year.

Participants can carry over unspent funds of up to $1,000 or 10% of the quarterly budget, whichever is greater. This rollover provision recognises that care needs can fluctuate, and allows for better financial planning without the pressure to spend entire budgets within strict timeframes.

Each classification will have a quarterly budget for ongoing services, promoting more consistent and manageable budgeting throughout the year. Rather than potentially losing unused funds at the end of a 12-month period, the shorter quarterly cycles with rollover provisions give participants greater control over their care spending.

For families helping to coordinate care, the quarterly system provides more frequent opportunities to assess whether services are meeting needs effectively. It also means that if circumstances change – such as after an illness or hospital stay – adjustments can be made more readily without waiting for an annual review.

The quarterly budget system also supports better cash flow management for both participants and providers, creating a more predictable framework for service delivery throughout the year.

2. Standardised participant contributions

Support at Home introduces a new, transparent co-contribution model that standardises how much participants pay based on their income and the type of services they receive. Contribution rates will be set as a percentage of the price of each service. This means a participant will pay an amount set by their percentage contribution rate, with rates determined by assessed income and assets. This sliding scale ensures that contributions remain proportionate to individuals' financial capacity.

Support at Home participants will need to contribute to the cost of independence and everyday living services. They will not contribute to the cost of clinical services, such as nursing care.

A crucial protection within this system is the lifetime cap of $130,000 that ensures affordability over time. Once participants have paid $130,000 (indexed) towards their services, they will not be charged any more for the services they receive, providing significant financial protection for those requiring long-term care.

The cap will be indexed to account for cost increases over time. This lifetime cap applies across both in-home care and residential aged care, meaning contributions made in either setting count towards the total.

The standardised approach eliminates confusion about contribution calculations and provides certainty for financial planning. Families can now more easily understand and budget for aged care costs, knowing exactly how contributions are calculated and what the maximum lifetime exposure will be.

3. Dedicated funding for Assistive Technology and Home Modifications (AT-HM)

From 1 November 2025, the AT-HM scheme will give Support at Home participants access to assistive technology and home modifications without needing to save up funds from their Support at Home quarterly budgets. This model marks a significant improvement from previous arrangements, where such modifications had to compete with other services for funding.

Assessors may approve participants for an assistive technology funding tier, a home modifications funding tier, or both. Assistive technology includes items, pieces of equipment or products that are used to help a participant to do things more easily or complete activities they can no longer do independently.

The AT-HM scheme operates across different funding tiers to address different levels of need. Access to high-tier home modifications will be capped at $15,000 per lifetime, with the home modifications high funding tier potentially extended for an additional 12 months to complete complex home modifications (24 months in total) if evidence of progress is provided to Services Australia within the first 12 months.

The funding will cover the item as well as prescription from allied health professionals, ensuring comprehensive support for equipment and modifications. This dedicated funding is designed to enhance independence without impacting regular care budgets, recognising that appropriate equipment and modifications can significantly reduce the need for personal care services whilst improving safety and quality of life.

The separation of AT-HM funding means that participants don't face the difficult choice between receiving personal care services or making their homes safer and more accessible. Both can be addressed simultaneously, providing a more comprehensive approach to maintaining independence at home.

4. Defined service list with transparent pricing

Support at Home introduces standardised service arrangements that bring transparency to aged care pricing. The service list includes clinical care (such as nursing and physiotherapy), support for independence (such as personal care, respite, transport and social support), and help with everyday living (such as cleaning, meals delivery).

Service providers will draw down on participants' budgets after services have been delivered. Prices for each service must not exceed price caps set by the government based on the advice of the Independent Health and Aged Care Pricing Authority, providing cost protection for participants.

Support at Home participants who receive ongoing services will have 10% of their quarterly budget set aside for care management. The care management funding for all participants will be pooled with their provider in a care management fund to deliver care management across all of their Support at Home participants.

This approach eliminates separate administration fees that previously reduced available care funding, meaning that more of each participant's budget goes directly towards care services rather than administrative overhead. The standardised service list facilitates easier comparison between providers and helps participants make informed decisions about their care.

The transparent pricing structure supports better care planning, as participants and families can more accurately predict costs and plan service combinations that work within their quarterly budgets whilst meeting their needs effectively.

5. Transition from HCP and CHSP to Support at Home

The transition timeline represents one of the most significant changes, with different programmes moving to Support at Home at different times. Support at Home will replace Home Care Packages (HCP) and the Short-Term Restorative Care Programme from 1 November 2025, whilst the Commonwealth Home Support Program (CHSP) will transition to Support at Home no earlier than 1 July 2027.

Home Care Package care recipients will transition to Support at Home at their current funding levels. Older people on the National Priority System awaiting allocation of a HCP will transition to the Support at Home Priority System and have their budget allocated once a place is available. They will retain an equivalent budget to their assessed HCP budget. They won't need a new assessment unless their needs change.

Support at Home will have 8 classifications for ongoing services and 4 classifications for transitioned HCP recipients. Existing Home Care Package care recipients and those waiting on the National Priority System will be guaranteed contributions to Support at Home that are the same, or lower, than they did on Home Care Packages Program. This is even if they are re-assessed into a higher Support at Home classification.

The staggered transition recognises that different programmes serve different needs and require tailored approaches to integration. Home Care Package recipients, who already receive individualised budgets, can transition more readily to the Support at Home model, whilst CHSP participants may need different arrangements given the block-funding nature of their current services.

Giving older Australians a better standard of care

These five funding changes under Support at Home represent the most significant reform of Australian aged care funding in decades.

For families supporting older Australians, these changes represent an opportunity to access more flexible, transparent, and comprehensive care arrangements that can better adapt to changing needs over time.