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How Aged Care Reforms Will Affect Home Care
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Aged Care Decisions
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The Australian Government’s aged care reforms are likely to pass legislation and take effect from July 2025.
Aged Care Decisions have answered the important questions about the new Support at Home program, and how it will affect you and your loved ones.
What is Support at Home?
Support at Home is a new and improved in-home care system.
It will replace the current Home Care Package program and the Short-Term Restorative Care Program in July 2025.
The Commonwealth Home Support Program (CHSP) will merge with Support at Home from July 2027.
What exactly is changing to aged care reforms?
- Under the new system of aged care reforms there will be eight levels of support available, with annual funding of up to $78,000 per person.
- A new 12-week program will be introduced to help seniors recover from illness or injury
- A $25,000 payment will be available to help recipients spend their final three months at home.
What is NOT changing to aged care reforms?
The services covered – Support at Home will continue to pay for in-home care services that are currently funded by Home Care Packages.
How funds are allocated – In-home care will continue to be allocated based on an individual’s assessed care needs.
CHSP – In-home care funded via the Commonwealth Home Support Program will continue unchanged until July 2027.
Current Home Care Package recipients will not pay more – Seniors who already have a Home Care Package (or those who are approved for a Home Care Package before July 2025) will switch to the new system but will not have to pay more than they currently do for their care.
How much will individuals have to pay for Support at Home?
Under the new system of aged care reforms, the government will continue to pay for health-related costs, but seniors with the financial means will pay more for some of the other costs.
Essentially, what you will pay will depend on your income and assets.
In-home care costs will be split into three categories:
| Clinical care Such as nursing and occupational therapy | The government-funded budget will pay 100% of clinical care costs |
| Independence supports Such as help with medications, showering and dressing | Individuals will pay 5-50% for independence supports |
| Everyday living supports Such as housework, meal delivery and mobility aids | Individuals will pay 17.5-80% for everyday living supports |
A lifetime cap will apply to aged care reforms, meaning that no individual will pay more than $130,000 in non-clinical care costs over their lifetime – including both in-home care and residential care.
Will everyone have to pay more?
No. If you already have a Home Care Package – or if you are approved for one before July 2025 – you will switch to the new system, but the government has guaranteed that you will not pay any more than you currently (or would) pay under the current/old system.
Why is the government changing home care?
The new Support at Home program will address many of the issues raised by the 2021 Royal Commission into Aged Care Quality and Safety.
Support at Home will:
- Deliver a simple and more equitable in-home care system for Australian seniors
- Improve access to services, equipment & home modifications
- Provide support for more people
- Reduce waiting times
By charging individuals more for in-home care, the government hopes it will be able to meet increased demand driven by the aging baby boomer cohort and deliver the high-level quality of aged care services Australians expect.
How will the changes to aged care reforms affect the Commonwealth Home Support Program (CHSP)?
The CHSP will remain as is until at least July 2027.
CHSP recipients can apply to be reassessed for a Home Care Package between now and July 2025, or the Support at Home program from July 2025.
Contact My Aged Care on 1800 200 422 or use this link to apply for an assessment: How to apply for an assessment | My Aged Care
How much funding will Support at Home provide?
Support at Home will be jointly funded by the Australian Government and individuals who have the financial means to contribute to their care.
The government will contribute up to $78,000 per person per year.
Read more: About the Support at Home program | Australian Government Department of Health and Aged Care
How to apply for a Home Care Package before the aged care reforms change
As mentioned above, if you already have a Home Care Package you will not have to pay more for your care than you do now.
If you are approved for a Home Care Package before 1 July 2025, your contribution will be based on the current Home Care Package system.
If you want to know more about Home Care Packages, Aged Care Decisions can help.
Their expert team are ready to answer your questions, put you on the right track with applications and assessments, and then find you a Home Care Package Provider you will love.
Aged Care Decisions’ service is obligation-free, 100% independent and provides invaluable assistance – even though it doesn’t cost you a cent.
Connect with their team at www.agedcaredecisions.com.au or on 1300 775 870.
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