What’s New in Home Care Package Funding and Access?

By Sophie Mitchell

Updated Jun 27, 2025

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Australia’s aged care landscape is undergoing one of the most significant reforms in decades. The introduction of the Support at Home Program, new funding models, changes in access pathways, and a stronger rights-based framework are reshaping how older Australians receive care in their homes. Let’s explore these changes in detail.

What Is the Support at Home Program and When Does It Start?

The Support at Home Program will launch on 1 November 2025, replacing the:

• Home Care Packages (HCP) Program

• Short-Term Restorative Care (STRC) Program

The Commonwealth Home Support Programme (CHSP) will continue unchanged until July 2027, when it too is expected to transition.

This streamlined program is designed to:

• Reduce administrative burdens

• Simplify access and assessments

• Provide more tailored support via a tiered classification system

How Is the New System Structured?

Instead of the current 4-level HCP system, the new model introduces:

• 8 Ongoing Classifications (based on needs)

• 2 Short-Term Pathways:

  • Restorative Care (post-hospital recovery)

  • End-of-Life Care (for palliative support)

This enables more precise alignment between individual care needs and funding levels.

Is More Funding Available Under the New System?

Yes. Funding has been significantly increased.

This is designed to match real-world care costs and needs better, especially as Australia’s ageing population continues to grow.

Can I Still Save My Unused Package Funds?

Not in the same way. Previously, unused HCP funds could accumulate indefinitely. Under the new system:

• You can bank up to 10% of your quarterly budget or $1,000 (whichever is greater).

• Excess funds will not roll over, promoting more active use of services.

• This is to prevent stockpiling and ensure fairness in the allocation of funding.

What Happens to Clinical and Personal Services?

Clinical Services:

• Fully funded by the government

• Includes nursing, physiotherapy, podiatry, etc.

Personal/Non-Clinical Support:

• Means-tested co-contributions

• Services like cleaning, showering assistance, meal prep, and gardening

• Your income will determine what you pay, but price caps will be introduced from 1 July 2026

Will I Pay More Under the New Contribution Rules?

It depends. If you’re a full pensioner, you’ll likely pay the same or less.

However, self-funded retirees and higher-income individuals could face higher out-of-pocket costs due to:

• Means-tested fees

• Updated lifetime caps, with estimates suggesting a potential contribution cap of up to $130,000 over a lifetime (up from ~$82,000 in 2024)

There’s concern among retirees about rising costs, but many details will be confirmed closer to the rollout.

How Will I Access the New Program?

A Single Access Point:

• A Single Assessment System will be used for all government-funded aged care.

• A new Integrated Assessment Tool (launched in July 2024) assesses needs for both aged care and health services.

Existing Clients:

• Automatically transitioned into Support at Home from 1 November 2025

• No reassessment required unless needs change

What About Assistive Technology and Home Modifications?

The new AT-HM (Assistive Technology & Home Modifications) Scheme provides:

• Upfront funding (separate from care budgets)

• Tiers of support for items like ramps, shower rails, mobility equipment

• Reduced paperwork and delays for simple modifications

This addresses one of the major frustrations under the HCP system: having to “save up” within your package to afford these items.

How Are Short-Term Needs Handled Now?

There are two short-term care pathways:

1. Restorative Care Pathway

• For those recovering from hospitalisation, injury, or illness

• Access up to $6,000 for 12 weeks of support (up from 8 weeks under STRC)

• Can be used twice per year (not consecutively)

2. End-of-Life Care Pathway

• For those with a life expectancy of 3 months or less

• Receive $25,000 over 12 weeks

• Enables palliative care at home, helping more Australians die in comfort and dignity

Will Wait Times Improve?

Not immediately. As of mid-2025, wait times for Home Care Packages remain up to 15 months in some regions.

However, the government has promised:

• 100,000+ new packages by 2026

• Targeting a 3-month average wait time by July 2027

Delays and workforce shortages continue to be a challenge, but the Support at Home Program aims to mitigate bottlenecks.

How Should You Prepare?

For Existing Home Care Recipients

• You’ll transition automatically to Support at Home on November 1, 2025, with the same level of services and budget.

• You’ll need to monitor any pricing changes, especially when provider-set fees are replaced by government-set caps (July 2026).

• Understand how banking limits and the availability of AT-HM funding could change how you manage unused funds or one-off expenses.

For New Applicants (from November 2025 onwards)

• A Single Assessment System simplifies entry, with eight classification levels aligning support and budget to needs.

• Clinical services remain fully covered, reducing out-of-pocket medical costs.

• Assistive tech and home modification funding is available upfront, easing access to essential supports.

• Consider comparing providers before price caps take effect, as providers typically set their fees initially.

Conclusion

The new Support at Home program, effective November 1, 2025, marks a significant shift in aged care funding — featuring more tailored classifications, increased budgets, capped banking of unused funds, and a clearer cost-sharing model. With controlled pricing from mid-2026, faster access to allied health services and home modifications, and a national focus on reducing wait times, the program aims to align more closely with individual care needs.

At Ambition Health Group, we’re committed to helping our clients navigate these changes with confidence. Whether you’re transitioning from an existing package or exploring aged care services for the first time, our expert team is here to provide personalised support, transparent guidance, and a clear path to the care you deserve, every step of the way.