Home Care Packages Changes

The Federal Government is changing how aged care services are delivered and funded, with a staged implementation of changes coming into effect from 1 July 2025. The existing Home Care Package (HCP) program will be replaced with the Support at Home program.

These have been brought about in response to the recommendations from the Royal Commission into Aged Care Quality and Safety. The new Support at Home program will bring together current in home and aged care programs, with the aim of providing a simpler and more equitable system for older people, to support them to stay at home for longer. The new program will also allow improved access to services, equipment, assistive technology and home modifications.

Notably, the Support at Home program will have an increase in annual funding available for in-home care services, with the current maximum of $61,440 raised to $78,000. This increase will provide aged care participants with access to higher levels of care.

From 1 July 2025, a new classification framework will be in place to specify different funding levels. The number of funding packages will increase from the existing 4 levels to 8 levels. 

Whilst information about these different funding levels – and what falls into each category – has not been fully released, the Federal Government has advised the final budget will be confirmed before the Support at Home program commences.

The funding budget will be released in quarterly instalments. Participants who have not spent their budget within the quarter will be able to accrue a maximum of $1,000 or 10% of their quarterly budget (whichever is higher) from one quarter to the next.

Under the Support at Home program, participants will contribute to their aged care costs where they have the means to do so. The level of contribution will be based on income assessments conducted by Services Australia, and will only be for certain services. 

For example, nursing and allied health services will continue to be fully funded by the government. Everyday living services, such as domestic assistance and gardening will attract the highest contribution rates, recognising that the government does not typically fund these services for any individual at other stages of life. 

On 30 June 2025, all Clients who currently have HCP will maintain the same level of funding and retain any unspent funds under the Support at Home program. 

A no worse off principle will apply to the contribution arrangements for participants, who on 12 September 2024 were receiving HCP. This means that no existing HCP clients will be worse off because of the reforms, and they will therefore be making the same contributions or lower contributions then they would have had under the HCP arrangements. 

We understand these changes may be overwhelming and confusing, and we will keep you informed as information becomes available to us. If you have any queries or concerns, please contact your Client Liaison Coordinator.