How the New Aged Care Reform Impacts Home Care

Understanding the Aged Care Reforms in Australia

What Is the Australian Aged Care Act?

The Aged Care Bill was passed on 25 November 2024 by the Australian Parliament. The New Aged Care Act affects the cost of aged care services for those requiring aged care services from 1 July 2025.

For more details on the New Aged Care Act, I recommend this resource from the Department of Health and Aged Care: About the New Aged Care Act | Australian Government.

Aged Care Reform Act Goals

The growing population of individuals requiring aged care prompted the government to reevaluate the aged care system.

The Aged Care Reform Act aims to construct a sustainable, strengthened aged care system by:

- Improving the quality, accessibility, and delivery of aged care services in Australia
- Giving older individuals the support they need to live in their homes longer and retain independence

Empowering older individuals to exercise their rights when accessing Commonwealth-funded aged care services
Supporting older individuals in living active, meaningful lives
Outlining clear rights for those seeking aged care services and a single assessment framework
Addressing 60 recommendations from the Royal Commission into Aged Care Quality and Safety
Increasing provider accountability
Providing greater choice and independence so older individuals can enjoy a higher quality of life

Learn more about the goals of Australia’s Aged Care Reforms here: About Aged Care Reforms.

What Is the New Support at Home Program in Australia?

The government is reforming in-home aged care to help individuals live at home for as long as possible.

Beginning 1 July 2025, the Support at Home program will replace Home Care Packages and the Short-Term Restorative Care Programme. It will also replace the Commonwealth Home Support Programme (CHSP) beginning July 2027.

The program aims to improve access to services that enable individuals to remain independent, active, and healthy at home.

Main Changes of the Support at Home Program

Here’s what you need to know for those accessing home care services from 1 July 2025:

Automatic Transition: Existing home care recipients will automatically transition to the Support at Home program on 1 July 2025 and will not have to pay any more than they currently do for their care, plus any unspent funds will carry over.

If approved for a Home Care Package before 30 June 2025, you will enter the Support at Home Program at the equivalent level of care you have been assessed for.

New Classification System: The Support at Home program will feature eight classification levels for ongoing services, rather than the current four-level system.
Defined Services: The program will provide a defined service list split into three categories: Clinical care, Independence and Everyday living

Clinical Care	Independence	Everyday Living
Nursing Care	Personal Care	Domestic Assistance
Allied Health & Therapeutic Services	Social Support & Community Engagement	Home Maintenance & Repairs
Nutrition	Transport	Meals
Care Management	Respite
Restorative Care Management	Therapeutic Services for Independent Living
	Assistive Technology & Home Modifications

New Fee Structure: Clients will be responsible for means-tested contributions, replacing the current basic daily fee. The percentage contribution will be calculated according to the Age Pension, including income and assets. The current program only considers assessable income.

	Clinical Care	Independence	Everyday Living
Full Pensioner	0%	5%	17.5%
Part Pensioner & Commonwealth Seniors health card eligible	0%	Between 5%–50% depending on income and assets	Between 17.5%–80% depending on income and assets
Self-funded Retiree	0%	50%	80%

Increased Funding: The highest classification level will increase from the current $61,000 budget up up to $78,000 annually.
Quarterly Budget Rollover Rules: A quarterly budget will be set under the Support at Home program. If the budget is not spent within the quarter, carry-over is limited to 10% of their quarterly budget or $1,000.
Restorative Pathway: Short-term support for up to 12 weeks to help regain independence.
End-of-Life Care Pathway: Seniors with a life expectancy of less than 3 months will have access to dedicated funding for end-of-life-care services. For seniors wishing to remain at home, they will receive priority access to funding for additional home care services.

Resources on the Support at Home Program

I recommend these excellent resources to learn more about the Support at Home program:

Caring Support and Professional Financial Advice with Aged Care Consultants

Proactive planning and professional assistance can take the complexity and confusion out of aged home care services. The role of an aged care consultant is vital to easing the emotional and logistical burdens of navigating aged care services.

Finding the right service solution can feel overwhelming, but our consultants provide tailored and compassionate support. Our goal is to handle all the logistics and complexities of aged care services so you can focus on your loved one.

We understand the ins and outs of all the funding options and home care services in Australia. This ensures we customise the ideal aged care solution for your loved one. We find tailored home care solutions that enable independence and familiarity with surroundings for as long as possible.

Learn more about Aged Home Care Services or contact me at Care Match Solutions with questions.

Grace Conboy is a Registered Nurse with over 15 years of experience in the aged care sector. For the past decade, she has dedicated herself to helping families access home care services and residential aged care.