State of Australia’s Aged Care Industry: September 2025 Update on Home Care Package Reforms

Are you among the staggering 208,000+ Australians caught in the frustrating queue for essential at-home aged care or a Home Care Package (HCP)? 

The demand for dignified, in-home support continues to vastly outpace supply, profoundly impacting the independence, daily living, and fundamental ability for countless older Australians to safely remain in their own homes.

This comprehensive report not only details the crucial September 2025 home care package reforms, but also provides vital context and actionable insights to help you (and your loved ones) to better navigate Australia’s complex aged care system.

The Unprecedented Home Care Package Backlog: A National Concern

For far too long, accessing appropriate at-home care has been an arduous and emotionally taxing journey for older Australians. The current backlog stands at a concerning over 208,000 individuals. This figure represents those patiently awaiting initial assessment for care needs, as well as those approved but still on the waitlist for an allocated Home Care Package (HCP).

These pervasive delays don’t merely represent statistics. They translate into real-life struggles, diminishing quality of life, eroding independence, and, in many cases, compromising the safety of individuals who wish to age safely in the place where their hearts live: Home.

Understanding the true, nation-wide scale of this backlog (and the dire need for home care package reforms), is the foundational first step toward identifying solutions and empowering individuals to make informed choices.

A Turning Point: The September 2025 Home Care Package Announcement

Breaking News & Crucial Dates for Home Care Package Reforms:

• September 3, 2025: Health Minister Mark Butler formally announced the release of 20,000 new Home Care Packages (HCPs).
• Between September and the end of October 2025: These 20,000 newly released packages are set to be allocated.
• Prior to December 25, 2025: A further 20,000 Home Care Packages are committed for release, bringing the total to 40,000 new packages before the end of the year.

This significant federal investment, spearheaded by Health Minister Mark Butler, is a direct response to the escalating aged care crisis and, notably, a strategic move to break a Senate deadlock over the government’s highly anticipated aged care reforms. The opposition and crossbench senators had been leveraging the package shortfall to exert pressure, demanding action on the waiting list. This announcement, therefore, serves a dual purpose: providing much-needed relief to older Australians and clearing a path for broader legislative changes.

Minister Butler emphasized that this substantial funding injection is not merely a stop-gap measure but a critical step towards addressing the long-standing systemic delays within the aged care system. It represents a tangible commitment to improving equity and access for all older Australians.

For families, this announcement offers a renewed sense of hope and reassurance that the government is actively prioritising and addressing this national challenge, with timely support now demonstrably on the horizon.

What These 40,000 New Packages Mean for the Waitlist

The immediate release of the first 20,000 packages, followed swiftly by an additional 20,000, will create a significant ripple effect across the aged care landscape. These allocations, and significant home care package reforms, are strategically targeted to primarily benefit:

• Those with the most urgent care needs: Ensuring that critical support reaches individuals who require it most immediately.
• Those who have been waiting the longest: Prioritising individuals who have endured extended periods without adequate care.

While the overall waitlist will still remain considerable given the sheer demand, this influx of 40,000 packages represents a vital and unprecedented acceleration in addressing the backlog. It signifies a tangible commitment to reducing delays and empowering tens of thousands more older Australians to receive the essential care they need to live safely and comfortably in their own homes.

The Transformative Impact: Real Benefits for Older Australians & Their Families

Accessing a Home Care Package provides a profound and life-changing difference, offering a comprehensive suite of support services designed to enhance an individual’s independence, health, and overall quality of life.

These tailored packages can include:

• Personal Care: Assistance with daily tasks such as showering, dressing, and grooming.
• Household Support: Help with cleaning, laundry, and garden maintenance.
• Nursing Services: Clinical care, medication management, and health monitoring by qualified professionals.
• Allied Health Services: Access to physiotherapy, occupational therapy, and other therapeutic support.
• Meal Preparation & Nutrition: Support with cooking, grocery shopping, and ensuring adequate nutrition.
• Social Engagement Programs: Activities and transport to maintain social connections and community participation.

With this substantial new funding, which sees a significant home care package reform, families can now plan for the future with greater certainty and confidence, while feeling secure in the knowledge that their loved ones will soon have access to the personalised support they truly need to maintain their cherished independence, optimise their health outcomes, and enjoy a higher quality of life within the familiarity of their own homes.

Deconstructing Home Care Package Reform Funding & Eligibility

Home Care Packages (HCPs) are a cornerstone of government-funded aged care in Australia, designed to be flexible and meticulously tailored to meet an individual’s specific and evolving care needs.

The crucial steps to accessing a package involve:

1. My Aged Care Assessment: Eligibility for a Home Care Package and the specific funding level (ranging from Level 1 for basic support to Level 4 for high-level care) are determined through a comprehensive assessment conducted by an Aged Care Assessment Team (ACAT) or an Aged Care Assessment Service (ACAS) via My Aged Care.
2. Income-Tested Fee: It is important for families to be aware that in some circumstances, an income-tested fee may apply. This fee is calculated based on an individual’s income and assets. Understanding these potential financial contributions upfront is vital for effective financial planning and ensures full transparency regarding any out-of-pocket expenses once services commence.
3. Package Management Fees: Providers also charge various administration and package management fees, which come out of the overall package funding. It’s crucial to understand these costs when comparing providers to ensure you’re getting the most value out of your package.

Empowering Yourself: Essential Tips for Navigating the Waitlist

While the government’s commitment to reducing the backlog is clear, waiting times can still be a reality.

Here are proactive and practical steps you can take to stay informed, prepared, and access interim support:

1. Regularly Monitor Your Position: Stay vigilant. Consistently check your current place on the national waitlist through the My Aged Care website (myagedcare.gov.au) or by contacting their dedicated phone line directly at 1800 200 422 (Freecall).
2. Organise All Essential Documentation: Prepare a comprehensive file of all necessary paperwork. This includes up-to-date medical records, detailed income statements, proof of any pension or concession cards, and your My Aged Care client ID. Having these readily accessible will streamline the process when your package becomes available.
3. Explore Interim Support Options: Don’t wait passively. Investigate available short-term restorative care options, local community support services, or even private care solutions that can bridge the gap and provide crucial assistance while you await the allocation of your permanent Home Care Package.
4. Communicate Your Needs Clearly: Ensure that My Aged Care is fully aware of any changes in your health or living situation. Highlighting urgent or deteriorating needs can sometimes impact your priority on the waitlist.

Ongoing Challenges & The Future Trajectory of Aged Care in Australia

Even with this unprecedented new funding injection, Australia’s aged care system continues to grapple with multifaceted and significant challenges. The relentless pressure of an ever-growing, aging population, coupled with persistent limitations in the capacity of the current provider network, means that some delays and systemic issues are likely to persist.

However, these recent government initiatives, particularly the large-scale release of new Home Care Packages (HCPs), unequivocally demonstrate a proactive commitment to improving access, expanding essential support services, and driving much-needed home care package reforms across the sector.

Staying highly informed, remaining proactively prepared, and advocating for the best possible care remain paramount for families seeking to effectively navigate the system and ensure their loved ones receive the high-quality, dignified care they deserve.

What’s Next: Support at Home Program and the Home Care Package Reforms

A major change is coming to aged care from November 1, 2025, with the introduction of the new Aged Care Act. At the heart of this shift is the Support at Home (SAH) program:

A cornerstone of the Australian Government’s Home Care Package (HCP) reforms. These reforms will replace the existing Home Care Packages (HCP) and Short-Term Restorative Care programs with a single, streamlined model.

One of the biggest changes? The number of ongoing support levels will double – from four to eight – allowing care to be much more tailored to individual needs. Support at Home will also introduce clearer pricing, stronger consumer protections, and specialised pathways for end-of-life care, restorative health support, and access to assistive technology and home modifications.

For families navigating aged care, these home care package reforms represent a crucial step forward: simplifying the system, improving transparency, and ensuring older Australians receive the right support, at the right time, to live independently at home for longer.

CareAbout: Your Partner in Simplifying the Aged Care Journey

If you’ve successfully been approved for a Home Care Package (HCP), or are currently navigating the complexities and frustrations of the waitlist, remember that you’re never alone in undertaking this challenging journey. When you let us CareAbout you as your trusted guide, we can help turn your funding into the support and care you truly deserve.

CareAbout is dedicated to empowering you and your loved ones every step of the aged care journey. We provide free, invaluable, unbiased support Australia-wide by:

• Choose From A Panel of Handpicked Quality Providers: With more than 900+ providers across Australia, we do the heavy lifting for you. We 1:1 match you with the top provider (from our handpicked panel of quality providers) for your unique situation based on your personal needs and preferences.
• Vetting for Quality & Compliance: We take the guesswork out of choosing a provider by assessing them against stringent quality and compliance standards, giving you peace of mind.
• Personalised Matching: Our expert team takes the time to understand your unique needs, preferences, and location to connect you with a provider that is the perfect fit.
• Streamlining the Process: We alleviate the administrative burden, helping you understand package funds, fees, and service agreements.

Contact CareAbout today at 13 13 00 (Freecall) to take the first confident and informed step toward securing the best possible home care.