Aged care reforms: changes to home care
Updated on 15 December 2024
The new Aged Care Act, which will commence on 1 July 2025, follows recommendations from the Aged Care Taskforce to build a system that can better meet future needs of an ageing population. At its core, the reform aims to provide more support and introduce a new funding model to drive growth in the sector.
Read a breakdown of the proposed changes for home care clients below.
Please note: the details of the act are yet to be finalised and below information is based on the draft act currently before parliament.
In this article:
- The new Support at Home program
- Funding and costs under the new Support at Home program
- Wesley Mission Queensland customers
- Get more information about the upcoming reform
The new Support at Home program
The Support at Home program will replace Home Care Packages (HCP) and Short-Term Restorative Care (STRC) programs from July 2025, and the Commonwealth Home Support Programme (CHSP) from July 2027.
A defined service list will be introduced, with 03 categories of support:
- Clinical care (such as nursing and physiotherapy)
- Independence (such as such as personal care, respite, transport and social support)
- Everyday living (such as cleaning, meals delivery and gardening)
10 levels of support will replace the 4 broad Home Care Package levels. This includes:
- 8 ongoing classifications
- 2 short term classifications: Restorative Care Pathway and End of Life Care Pathway.
Restorative Care Pathway: it will double the number of places and increase the maximum duration of support of intensive allied health care, from 8 weeks to 12 weeks.
End of Life Care Pathway: seniors with less than 3 months to live and who wish to stay at home, will be given priority access to the dedicated funding classification for additional home care services ($25,000 for 12 weeks).
New schemes offer faster access to assistive technology and home modifications:
- A separate funding scheme will allow upfront access to assistive technology (such as walkers and wheelchairs) and home modifications with up to $15,000 to make a home safer. This means people will no longer have to save their package funds for these supports.
- The scheme will have a defined list of the assistive technology and home modifications that can be funded.
Funding and costs under the new Support at Home program
- No-cost clinical services: the government will cover 100% of all clinical care costs (essential medical services such as nursing and physiotherapy).
- Mandatory individual contribution: all individuals, including full pensioners, will pay more for non-clinical services, such as personal support and daily living assistance.
- Means-tested contributions: individual contributions will be based on type of services received, as well as the person’s income and assets.
- Capped prices: 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. Price caps commence in July 2026 after a transition year. Learn more at Staged price caps in new Support at Home Program.
- Increased funding: maximum funding amount will increase from $61,000 to up to $78,000 per year.
Below is the indicative budget amounts for each ongoing classification, as shown in the Department of Health and Aged Care website on the 19 Nov 2024:
| Classification | Quarterly budget | Annual amount |
|---|---|---|
| 1 | ~$2,750 | ~$11,000 |
| 2 | ~$4,000 | ~$16,000 |
| 3 | ~$5,500 | ~$22,000 |
| 4 | ~$7,500 | ~$30,000 |
| 5 | ~$10,000 | ~$40,000 |
| 6 | ~$12,000 | ~$48,000 |
| 7 | ~$14,500 | ~$58,000 |
| 8 | ~$19,500 | ~$78,000 |
The indicative budget amounts for home care recipients transitioned to Support at Home are:
| Transitioned home care recipients | Quarterly budget | Annual amount |
|---|---|---|
| 1 | $2,708 | $10,833 |
| 2 | $4,762 | $19,049 |
| 3 | $10,365 | $41,460 |
| 4 | $15,713 | $62,853 |
- Participants will receive a quarterly budget.
They will be able to save up to $1,000 or 10% (whichever is higher) of the value of their quarterly budget across quarters, if available.
- Remote locations: Grant funding will be available to help service providers in thin markets, such as rural and remote locations, and providers supporting diverse groups.
- Existing aged care clients - Packages: as per the Government’s ‘no worse off’ principle, people who already have an Aged Care Package (HCP) on 30 June 2025 will maintain the same level of funding and retain any unspent funds when transitioned to Support at Home program.
- Existing aged care clients - Contributions: people who, on 12 September 2024, were either receiving a package, on the National Priority System, or assessed as eligible for a package, will not pay more when transitioned to Support at Home program.
o When moving to residential care, they will stay on the existing contribution arrangements unless they opt to move to the new program. Changes to accommodation payments would still apply, since accommodation payments are an agreement negotiated between the resident and their provider.
Wesley Mission Queensland customers
- Existing Home Care Package clients: as per the Government’s ‘no worse off’ principle, from 1 July 2025 you will move to the new Support at Home program and keep your level of funding plus any unspent funds.
- New Home Care Package clients: there’s no need to wait for the new system. You can start a conversation with us today by calling 1800 448 448 or click here to enquiry online.
- Aged care residents (nursing homes): the new contributions and accommodation arrangements will only apply to new entrants to residential aged care from 1 July 2025. Everyone in residential care on 30 June 2025 will maintain their arrangements until leaving care.
Get more information about the upcoming reform
- Support at Home FAQS (PDF)
- New Aged Care Act
https://www.health.gov.au/our-work/aged-care-act
- About the aged care reforms
https://www.health.gov.au/our-work/aged-care-reforms/about
https://agedcareengagement.health.gov.au/reforms
- About the Support at Home program
https://www.health.gov.au/our-work/support-at-home/about
- Support at Home – Fact sheet
https://www.health.gov.au/resources/publications/support-at-home-fact-sheet
- About the Single Assessment System for aged care
https://www.health.gov.au/our-work/single-assessment-system-for-aged-care/about
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