Everything you need to know about the upcoming changes to aged care: Your FAQs answered
The Australian Government has announced major changes to aged care, with the new ’Support at Home’ program and a new Aged Care Act set to take effect from 1 July 2025.
With so many changes ahead, you may be wondering how this will affect you. But don’t worry – at Feros Care, we’re committed to keeping you informed and ensuring a smooth transition to the new aged care system.
Below, we’ve answered some of the most common questions about what’s coming. And if you have any further questions, don’t hesitate to get in touch.
What is the new Aged Care Act, and why is it important?
The new Act takes a rights-based approach, placing older Australians at the centre of care. Key changes include:
- Better care in homes, communities, and residential facilities
- Stronger accountability for aged care providers
- Alignment with recommendations from the Royal Commission into Aged Care Quality and Safety
The new Act will officially commence on 1 July 2025. For more information about the Act, click here to access the government fact sheet.
What is the new Support at Home Program?
The Support at Home Program, launching on 1 July 2025, will replace Home Care Packages (HCP) and Short-Term Restorative Care (STRC) programs.
This program aims to provide participants with needs-based support to help people remain in their homes longer, with a defined services list across three categories:
- Clinical care (e.g., nursing, physiotherapy, care management)
- Independence support (e.g., personal care, showering)
- Everyday living assistance (e.g., cleaning, gardening, meals)
You can download the draft handbook for the program by clicking here.
I am on the Commonwealth Home Support Programme (CHSP), is that changing?
Not yet! The current CHSP programme will continue until at least 2027.
What are some of the biggest changes with ‘Support at Home’?
Here are some of the most significant changes:
- You won’t need to pay for clinical care services (such as nursing and physiotherapy) as they will be fully government-funded. However, you may need to contribute more to other services – more on that below!
- There are higher levels of care available, as well as more funding (the maximum annual budget of funding has increased by over $15,000), with increased access to restorative care.
- You should also be able to access in-home support more quickly, with the government’s goal being to reduce home care package waitlists for ongoing care support through the Support at Home program.
- There is separate funding available of up to $15,000 for assistive technology and home modifications, making it easier to access equipment (such as some of our most-recommended items here).
- There’s a new End-of-Life pathway, with up to $25,000 available to assist people who wish to pass away in their own home.
How will my contribution be calculated under Support at Home?
The government will fully fund clinical care, and contributions for other services will be based on means testing. Your contribution will depend on your income and assets.
| Category | Clinical Care (e.g. nursing) | Independence Support (e.g. personal care) | Everyday Living Support (e.g. cleaning, meals, gardening) |
|---|---|---|---|
| Full pensioner | 0% | 5% | 17.5% |
| Part pensioner | 0% | 5-50% (means-tested) |
17.5-80% (means-tested) |
| Self-funded retiree (with/eligible for Commonwealth Seniors Health Card) |
0% | 5-50% (means-tested) |
17.5-80% (means-tested) |
| Self-funded retiree (not eligible for Seniors Health Card) |
0% | 50% | 80% |
There is also a $130,000 lifetime cap on contributions across both home care and residential care to protect those who receive long-term support.
Will I need to be reassessed for the Support at Home Program?
- If you already commence on a Home Care Package prior to July 1 2025, you will transition to the new system without reassessment. Your funding will match your current Home Care Package level.
- If you commenced on a Home Care Package or were approved for one prior to 12 September 2024 your contributions under the Support at Home program will be no higher than you are currently paying under the Governments ‘no worse off principle’. For anyone approved after 12 September 2024 you will move to the Support at Home means tested contributions as shown above.
- If you need more care in the future, you will require a new assessment under the Support at Home classification system.
How does the Support at Home Program’s budget work?
The program introduces eight levels of ongoing support (compared to the current four Home Care Package levels). Each level has a set quarterly and annual budget (indicative estimates provided by the Government are shown below)
The classification budget shown includes both the Government funding portion (subsidy), and the participant contribution.
| Classification | Quarterly Budget | Annual Amount |
|---|---|---|
| 1 | $2,750 | $11,000 |
| 2 | $4,000 | $16,000 |
| 3 | $5,500 | $20,000 |
| 4 | $7,500 | $30,000 |
| 5 | $10,000 | $40,000 |
| 6 | $12,000 | $48,000 |
| 7 | $14,500 | $58,000 |
| 8 | $19,500 | $78,000 |
You can rollover up to $1,000 or 10% of your quarterly budget (whichever is greater) into your next quarterly budget which can be used for any additional care needs.
Will I lose my unspent Home Care Package funds?
No, you won’t lose your unspent funds but there are rules around how you can use this funding within the Support at Home program. You don’t have to wait though as you can already use these funds towards services that will help you stay at home longer. Click here to find out more.
What about self-managing my Support at Home package?
If you choose to self-manage with a provider other than Feros Care, you will have 10% of your ongoing classification funding allocated to care management which covers the following from your provider:
- Service coordination
- Regular check-ins
- Clinical advice
This 10% care management allocation applies to all participants in the Support at Home program, regardless of whether they self-manage or use a provider.
Will Feros Care still charge a package management fee?
Under the Support at Home program, providers are unable to charge separate package management fees as these costs need to be included within the service price.
Will there be price caps on services?
The government will not introduce service price caps until 1 July 2026. Until then, providers will set their own prices, but the Department will monitor and audit providers to ensure fairness.
What about residential aged care?
Changes coming to residential aged care include:
- A new means-tested contribution for new residents (indexed twice a year)
- An increase in the maximum room price, from $550,000 to $750,000, with future indexing
- Retention of a small portion of refundable accommodation deposits by providers
These updates aim to support the development of new aged care facilities and improve quality.
What happens next?
If you are:
- A current Home Care Package client: You will transition to Support at Home ready to commence in July 2025, and we’ll keep you updated every step of the way.
- Not yet on a Home Care Package: You don’t have to wait for the new system to check your eligibility! Talk to us now about what support you can receive.
- Living in residential aged care: The new contribution system will only apply to new residents from 1 July 2025.
How can I stay informed?
- Subscribe to our mailing list for updates as the reforms roll out.
- Visit our Reform Hub for a full timeline of the changes.
- Check out the Department of Health’s website for the latest government updates: www.health.gov.au/our-work/aged-care-act.