Oct 7, 2026
What Replaced Home Care Packages in Australia
Find out how the Support at Home system works, what happens to your funding, and how to choose local care in Gippsland. Contact our team today.
The support at home program officially replaced Home Care Packages on 1 November 2025 to give older Australians a simpler way to stay in their own homes. This framework replaced four broad tiers with eight specific funding classifications. It sets clearer rules by capping management fees, protecting saved balances, and funding required clinical services in full.
Key Takeaways
The support at home program replaced the four Home Care Package levels with eight ongoing classifications.
Clinical care like nursing and physiotherapy is 100% government-funded across every income bracket.
Provider administration fees are legally capped at 10%, keeping more funds available for everyday help.
Existing package recipients keep 100% of their unspent funds under grandfathering protections.
Why Australia Changed In-Home Aged Care
The Australian Government introduced this reform following recommendations from the Royal Commission into Aged Care Quality and Safety. For years, older Australians faced long waiting lists for high-level support. Families frequently saw large portions of their subsidies absorbed by high provider management fees.
The previous setup split basic help and complex care into separate systems. Moving between them often required waiting through duplicate assessments. The new model brings these services together under one framework. Under published government targets, the reform aims to reduce waiting times for ongoing home care allocations to three months by July 2027.
Our team works with families across Pakenham, Baw Baw Shire, and the Latrobe Valley through each step of this transition. Clearer rules give local households confidence when organising help at home. With simpler funding categories, you spend less time sorting out bills and more time receiving the support you need.
How the Support at Home Program Compares to Old Packages
Under the former system, participants received one of four broad package levels. Providers managed these funds as broad annual lump sums and deducted administration fees upfront, often taking 20% to 40% of the total budget.
The support at home program replaces those four packages with eight ongoing classifications paid out as quarterly allocations. Pricing updates published by the Department of Health and Aged Care set the funding amounts across each level:
Classification 1 provides 2,752.50perquarter(11,010.01 annually) for basic entry support.
Classification 2 provides 4,112.84perquarter(16,451.35 annually).
Classification 3 provides 5,634.20perquarter(22,536.81 annually).
Classification 4 provides 7,617.13perquarter(30,468.51 annually).
Classification 5 provides 10,182.38perquarter(40,729.53 annually).
Classification 6 provides 12,341.32perquarter(49,365.27 annually).
Classification 7 provides 14,915.00perquarter(59,660.00 annually).
Classification 8 provides 20,034.28perquarter(80,137.12 annually) for complex clinical needs.
Four transitional tiers also exist for clients who moved from earlier packages without needing an immediate reassessment. For instance, a client who held a former Level 4 package moves into an interim tier providing $16,353.98 each quarter.
What Services the New Program Pays For
The framework splits funding into three distinct support streams to keep daily billing transparent. You can see exactly what the government covers and what small co-contribution applies to your situation.
Clinical Care
Clinical care covers direct health services delivered in your home, including registered nursing, physiotherapy, occupational therapy, and wound care. The Australian Government funds these clinical services at 100%, meaning participants pay nothing out of pocket regardless of income.
Independence Supports
Independence supports assist with daily personal routines. This category includes showering help, dressing, mobility tasks, and transport to appointments. Carers can also look at respite care for a short break to rest and recharge while our workers step in.
Everyday Living Supports
Everyday living supports focus on routine chores around the house. These services include meal preparation, grocery shopping, cleaning, and basic garden maintenance. Keeping up with these jobs ensures your home stays safe, tidy, and easy to live in.
Dedicated Short-Term Care Pathways
Specific medical needs sometimes call for focused help outside regular quarterly budgets. The program provides three separate short-term funding streams so you do not have to stretch your core allocation:
Restorative care pathway provides up to 16 weeks of allied health and nursing care valued around $6,000 to help you regain mobility after an illness or fall.
End-of-life pathway supplies an urgent allocation of $25,000 over 12 to 16 weeks for people diagnosed with three months or less of life expectancy.
Assistive Technology and Home Modifications Scheme delivers dedicated equipment funding outside your care budget, starting at $500 for minor aids and reaching $15,000 or more for home ramps and rails.
Understanding Participant Fees and Protections
Participant contributions depend on the service category and a financial assessment through Services Australia. The rules outline clear contribution rates for each stream:
Clinical care has a 0% co-contribution for all participants.
Independence supports require a 5% co-contribution from full pensioners and up to 50% from self-funded retirees. On 1 October 2026, the participant contribution for personal care drops to 0% for everyone.
Everyday living supports require a 17.5% contribution from full pensioners and up to 80% from self-funded retirees.
To protect personal savings, the government set a $130,000 lifetime cap on non-clinical care contributions across in-home and residential aged care. Families experiencing financial hardship can also apply for the government fee reduction supplement to lower these costs.
Grandfathering and the No Worse Off Guarantee
The Australian Government introduced the "no worse off" principle to protect people who were already receiving aged care before the reform started.
If you had an active package, were on the National Priority System, or were approved for care on or before 12 September 2024, your contribution rates cannot increase above previous levels. Grandfathered full pensioners pay 0% co-contributions across all services, and previous income-tested care fees were removed.
What Happens to Accumulated Unspent Funds?
Transitioned recipients keep 100% of their unspent Home Care Package balances saved before 1 November 2025. While new quarterly allocations have a rollover ceiling of $1,000 or 10%, that limit does not apply to your past balance. You can use these saved funds for extra approved services, mobility equipment, or home modifications whenever needed.
How the Single Assessment System Evaluates Care Needs
The Single Assessment System started on 1 December 2024. It brought together the separate Aged Care Assessment Teams (ACAT) and Regional Assessment Services (RAS) into one unified national group.
Assessors check physical mobility, memory, medical conditions, and home safety using the Integrated Assessment Tool. This single tool stops duplicate visits and helps you move into the right funding classification faster.
This unified approach also simplifies things for older Australians with disabilities. Participants moving from the Disability Support for Older Australians (DSOA) program exit that scheme once their aged care funding starts. The government also aligned worker screening checks across aged care and disability support, ensuring consistent safety standards across both sectors.
Choosing Your Care Provider in Gippsland
Service pricing under the support at home program uses fixed unit pricing. Registered providers publish straightforward hourly rates for each approved service, with no separate travel surcharges or unexpected add-on costs.
General administration fees are capped by law at 10%. Care management is also set at 10%, which is deducted and pooled across local provider branches. Pooling these funds helps providers maintain consistent services for clients across regional areas like South Gippsland, Bass Coast, and Wellington Shire.
Our office is in Pakenham; meet our local team before you decide. Working with local coordinators means you deal with people who know the regional clinics, doctors, and community networks nearby.
Our in-home aged care services cover Pakenham and Gippsland, helping you live comfortably in familiar surroundings. If you ever decide to change providers, switching does not cost anything. Commonwealth-held unspent funds transfer to your home support account, and any provider-held contributions are refunded according to government rules.
Frequently asked questions
When did the support at home program replace Home Care Packages?
The transition took effect on 1 November 2025, merging Home Care Packages and Short-Term Restorative Care into one program. The Commonwealth Home Support Programme (CHSP) is scheduled to join the system no earlier than 1 July 2027.
Do I lose my existing home care funds under the new rules?
No. You keep all unspent funds accumulated prior to 1 November 2025. These balances stay in your account and do not face the quarterly rollover caps that apply to new budget allocations.
How are travel and administration fees charged now?
Providers cannot charge separate management, administrative, or travel fees on top of standard services. All operating costs must sit within clear hourly rates, and general administration fees cannot exceed the 10% legal cap.
Can I choose my own support workers under the new setup?
Yes. You keep control over your daily routine and the workers who come to your house. You can stay with your current care team or switch to another registered provider without paying exit fees.
Ready to Navigate Your Home Care with Confidence?
Our Pakenham team is ready to answer your questions about budgets, classifications, and daily services across Gippsland.