Australia’s aged care system has undergone its biggest structural change in a decade. As of 1 November 2025, the Support at Home Program has replaced the old Home Care Packages.
While change can feel overwhelming, this reform has been designed to fix long-standing problems in the old system, including inadequate support for people with high needs and the accumulation of unspent funds. Here are the eight key benefits and why they matter.
1. Support At Home Funding Caps
The previous four-tier system capped support at around $63,000. If your needs exceeded this, residential care was often the only option. The new model expands to 8 classifications, offering far higher funding limits and more targeted support for people with complex needs.
The Benefit: You can now receive significantly more support, helping you remain at home for longer even with high or complex needs.
- Level 1: ~$10,731/year
- Level 2: ~$16,034/year
- Level 3: ~$21,965/year
- Level 4: ~$29,696/year
- Level 5: ~$39,697/year
- Level 6: ~$48,114/year
- Level 7: ~$58,148/year
- Level 8: ~$78,106/year
Why this matters: The new Level 8 delivers around $15,000 more than the previous highest tier and is designed to support people with advanced or complex conditions, helping them stay safely at home and delay residential care.
2. Clinical care is free
Under the old system, self-funded retirees paid higher contributions, even for essential healthcare. Under Support at Home, all clinical care—nursing, physiotherapy, occupational therapy, podiatry—is fully funded by the government, regardless of income.
The Benefit: A full pensioner and a wealthy retiree both pay $0 for clinical health services, removing cost as a barrier to essential care.
Why this matters: People no longer skip crucial health treatments to save money, reducing preventable hospital visits and improving long-term wellbeing.
3. Equipment is funded separately (AT-HM Scheme)
Previously, buying expensive equipment meant sacrificing day-to-day services. The new Assistive Technology and Home Modifications (AT-HM) Scheme provides a dedicated funding bucket for everything from small aids to major home modifications.
The Benefit: You can access equipment immediately without reducing your support hours.
- Low Tier: Up to $500/year
- Medium Tier: Up to $2,000/year
- High Tier: Up to $15,000+ for major modifications
Why this matters: Safety equipment and home modifications no longer compete with your essential care needs. You receive both.
4. “Surge” pathways for recovery and end-of-life
The system now includes two short-term pathways for periods when care needs suddenly increase, such as after a fall or during the final stage of life.
The Benefit: These pathways provide additional funding on top of your usual quarterly budget.
- Restorative Care: Around $6,000 (up to ~$12,000) for a 12–16 week intensive reablement program after a fall or illness.
- End-of-Life Pathway: Around $25,000 over 12 weeks for palliative support at home.
Why this matters: You receive rapid, meaningful support during crisis moments, without sacrificing your day-to-day care budget.
5. Quarterly budgets prevent unspent funds
Funding is released every three months and only $1,000 or 10% can be rolled over. This encourages active use of support rather than stockpiling funds.
The Benefit: The system becomes more proactive, ensuring funds are used for your health and safety now, not saved for the distant future.
Why this matters: Previously, billions of dollars sat unused while needs went unmet. The new system prioritises timely support and better outcomes.
6. Capped admin fees mean more care hours
Providers can no longer charge excessive fees. Care management fees are capped at 10% of your quarterly budget, and AT-HM admin fees are similarly restricted.
The Benefit: You know exactly how much of your budget goes to overheads, ensuring predictable and fair pricing.
Why this matters: This prevents situations where 30% or more of someone’s package was consumed by administration, freeing more money for direct support.
7. Fairer contributions for lifestyle services
Clinical care is fully funded, but contributions are now means-tested for “lifestyle” services such as cleaning and gardening. Pensioners pay very little, while wealthier retirees contribute more.
- Full Pensioners: 5% for independence help and 17.5% for cleaning/gardening
- Self-Funded Retirees: 50% for independence support and 80% for cleaning
The Benefit: The contribution system becomes fairer and more sustainable.
Why this matters: Government funds can be directed where they matter most—clinical care—while lifestyle tasks remain affordable for everyone.
8. “No Worse Off” guarantee
People receiving Home Care Packages before November 2025 are fully protected during the transition.
The Benefit: You will not pay more than you do now, and your unspent funds will remain exempt from the new carry-over limits.
Why this matters: You receive the benefits of the new system without any financial disadvantage or loss of accumulated funds.
The Support at Home Program marks a significant step forward in delivering high-quality, person-centred care for older Australians. Its flexibility, expanded clinical access, dedicated equipment funding, and crisis pathways address many of the gaps that previously left people under-supported at home. For families and older people alike, this program offers a clearer, stronger and fairer foundation for ageing safely and comfortably at home. Explore Support at Home services here.
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If you’re still confused and would like to chat to an expert on Home Care options, contact CareAbout today!
