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.

“When you’re managing home care, it’s about more than services—it’s about preserving dignity, independence, and peace of mind. These system changes may feel daunting, but with the right guidance, they can help you access the support you truly need.”
— Andrew Wem, Aged Care Specialist Adviser at Navwealth

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 are 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 the transition to Support at Home (from 1 November 2025) brings both opportunities and new decisions, especially around contributions, package levels, and care management. But you don’t have to do this alone.

If you’re thinking about or already receiving home care, our aged care advice team is dedicated to supporting you through every step:

• Clear breakdowns of how these changes affect your situation
• Comparative estimates of your future contributions
• Financial planning that ensures your care needs are met sustainably

Let’s have a conversation that centers on your needs and peace of mind—today and into the future.

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.

IMPORTANT INFORMATION: This document has been prepared by Aged Care Steps Pty Limited, ABN 42 156 656 843 AFSL 486723, based on our understanding of the relevant legislation at the time of writing. While every care has been taken, Aged Care Steps Pty Limited makes no representations as to the accuracy or completeness of the contents. The information is of a general nature only and has been prepared without consideration of your individual objectives, financial situation or needs. Before making any decisions, you should consider the appropriateness for your personal investment objectives, financial situation or individual needs. We recommend you see a financial adviser, registered tax agent or legal adviser before making any decisions based on this information. Current at 8 July 2025.