What Support at Home Means for Your Care Budget and Your Wallet
From 1 July 2025, Australia’s aged care system is changing — and for many older Australians and their families, the big question is:
“How much will we need to pay?”
The new Support at Home program aims to make things fairer, clearer, and easier to navigate.
Here’s what you need to know.
How Your Contribution Will Be Calculated
If you’ve previously paid an income tested care fee (set by Services Australia) then you can forget about that. Income tested care fees are out!
Your out-of-pocket contribution will now depend on two things:
1. The type of care you receive
2. Your income and assets
The ‘type of care you receive’ is in regards to three key categories of care that is being introduced, each with its own pricing model.
🩺 1. Clinical Care – Fully Government Funded
Covers:
· Nursing and medical care
· Allied health (physio, podiatry, dietitians, etc.)
· Restorative care and care management
Cost to you:
$0 — this care is fully funded, no matter your income.
💪 2. Independence Support
Covers:
· Help with personal care, transport, in-home respite, social support
· Therapies (e.g. chiropractic, osteopathy), assistive technologies, home modifications
Your contribution is means tested:
Client Type Contribution
Full pensioner 5%
Part pensioner / CSHC 5%–50%
Self-funded retiree 50%
🏠 3. Everyday Living Support
Covers:
· Cleaning, home maintenance (gardening)
· Meal preparation or delivery
Your contribution is means tested:
Client Type Contribution
Full pensioner 17.5%
Part pensioner / CSHC 17.5%–80%
Self-funded retiree 80%
Budget Flexibility and Ongoing Support
Another big change is how your budget can be managed. You will be able to roll over unspent funds from one quarter to the next. This means if you don’t use your full budget, you can save for unexpected costs like equipment or extra support after an illness.
This next bit is new (and huge!). There’s now a cap on the amount you can accrue: you can only save up to $1,000 or 10% of your quarterly budget (whichever is greater). This is a change from the current system, where unused funds could accumulate into tens of thousands of dollars (I have seen 6 figures in some instances!).
💡 Why the change? It allows funding to be more evenly spread and available to more people.
No More Hidden Admin Fees
In the past, you might have seen your budget dwindled down by separate charges for admin and package/case management. On a level 2 HCP this could at times look like up to 50% of someone’s budget. That’s changing too.
Under Support at Home:
· All fees for delivering that service are now built into service prices.
For example, if you have Sarah coming to do some cleaning then the hourly rate will include her fee but also a couple of dollars added for the service provider to cover their costs, travel etc.. Much like if we buy a cappuccino down at the café. We don’t pay for the coffee and then pay for the overheads separately. We pay for the coffee and the cost of the coffee includes the cost of the milk, coffee, machine, barista, café rent, insurance etc.
· It means instead of the provider getting paid 50% of someone’s budget and doing 0 work for this (think of those unanswered calls to your provider, services that are impossible to change etc). Providers will only get this payment when the work is done. The incentive for payment is now there. Do the work, you get paid.
I know what you’re thinking! But Emily, these service prices are going to be astronomical, we’ll now spend all our budget on one or two over priced services.
Fear not- this has been thought about (shock and hurrah!!) For now, theses service prices will be set by providers. But from 1 July 2026, the government will introduce price caps to limit out-of-pocket expenses. What this might look like and some indicative prices are available on the Department of Health, Disability and ageing website:
https://www.health.gov.au/news/new-support-at-home-pricing-guidance
This document allows you to compare with the rest of the market against what your provider is charging and if you think this is reasonable or not. It may help you decide whether to choose another provider altogether.
Providers will need to publish their standard prices on their website and in the Find a Provider tool on the My Aged Care website making accountability and comparison now at the heart of the program- finally.
Built-In Care Management
As mentioned above, one of the other budget crushers in the HCP program was Case Management fees. An important feature of the new model is dedicated care management support which will transform this cost.
· 10% of every participant’s quarterly budget will be automatically set aside for care management services (previously this was capped at 20%).
· This includes help with navigating the system, adjusting care as your needs change, and coordinating services.
This ensures every participant has access to ongoing, professional support without losing out on hours of care.
💡 Key Points to Remember
· No more daily care fee. Contributions will depend on your needs and your financial situation.
· Clearly defined service categories will guide this contribution structure.
· Service Prices are set by providers (for now), but next year the Government will place a cap on these. The prices will be visible and comparison much easier.
· Case management automatically set at 10% of someone’s budget
· 10% or $1000 (whichever is greater) quarterly budget rollover gives you more flexibility, while new rules keep it fair.
The new Support at Home program is a lot. It’s a big change and it’s a tonne of information. The information here is just a snap shot. I know it must seem overwhelming but hopefully it is starting to make more sense.
If you have questions or need help understanding what it means for your situation, we’re here to support you every step of the way.
Send me a message or give me a call. You deserve to be in control.
