Key things to know about home care changes

From 1 November 2025, a new program called Support at Home will replace the current Home Care Package system, bringing significant changes.

On the positive side, there will be more packages available, which should reduce waiting times. But there will also be changes to the contributions (fees) you pay – and for some people, this could mean paying more for the care services you access.

Here’s a simple overview to help you understand what’s changing and how you can prepare.

What’s changing?

The existing Home Care Packages will cease on 1 November 2025, and everyone will transition to Support at Home. You might not see a disruption in your services, but you will notice changes.

Some key differences in the new system:

• A new fee structure, based on your financial circumstances and the services you access

• You will continue to be charged by your provider, but only after you have received services

• Eight levels of care instead of four, to better match your needs, with additional funding for assistive technology and home modifications (where approved)

• Budgets will be allocated quarterly – and if not used, won’t carry over.

These changes apply to both new applicants and people who are already receiving care.

What about fees?

The Government will continue to subsidise care costs within your approved budget, but you’ll be expected to make a contribution. Here’s how the new contributions will work:

• What you pay depends on your financial situation – whether you receive a full or part pension, or are self-funded

• Clinical care (like nursing or physiotherapy) will be fully funded by the Government

• You may pay more for everyday living services (like meal preparation or cleaning) than you do for independence supports (like personal care or transport).

• If you were approved for, or receiving, a Home Care Package as at 12 September 2024, you will be eligible for fee concessions, so you are no worse off under the new rules.

Importantly, there’s a lifetime cap on your contributions – you will not pay more than $130,000 (indexed) over your lifetime.

Your package level sets the total funding available to pay for care, but 10% is allocated to the care provider to cover the cost of care management. You then work with your provider to decide how you want to spend the rest of the budget. The provider sets their fee for services so it’s worth checking what they charge – the more they charge, the less support you may be able to afford from your package. You could always choose to pay extra if your package does not cover all the care you need.

How to be ready?

To make the most of the new system, it’s a good idea to take a few steps before November:

• Think about your care needs – what help do you need and what services will make a difference to you?

• Talk to your current provider – if you’re already receiving care, they should be in touch to help you transition. You’ll need to sign a new service agreement under the new system.

• Book an assessment – if you need help but don’t already have a package, contact My Aged Care to arrange a care needs assessment. This takes time, so it’s best not to delay.

Need help to understand your options?

 

Navigating aged care can be complicated – especially with these new changes. That’s why we offer specialist aged care advice to help you plan and make the best choices.

We can help you:

• Understand how the changes affect you

• Calculate estimates of your contributions

• Make sure your finances and investments are set up to provide the cashflow you’ll need.

If you’d like to chat about your options or get help preparing for the changes, we’re here to help. Just give us a call.

Bill Savellis

Senior Financial Adviser

Having navigated the Aged Care landscape for both of his parents, Bill understands how challenging it can be to make the right decisions for your future care needs. That's why he believes that everyone should have access to financial advice during this time. Bill has been a Financial Adviser for over 22 years, and is passionate about helping others access the financial advice they need. Drawing from his own experience in the financial sector, Bill develops strategic, personalised plans to support transitions to Aged Care or Home Care.

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Disclaimer: Prepared without taking into account your objectives, financial situation or needs. Before acting on any information in this article, Olive Grove Financial Advice recommends that you consider whether it is appropriate for your circumstances. Information in this article was correct and current as of 29 September 2025. Olive Grove Financial Advice is operated by Bill Savellis through The Financial Advisor (Australia) Pty Ltd ABN 72 619 546 431, who is a Corporate Authorised Representative (No. 1278394) of Havana Financial Services Pty Ltd.