How to Make the Most of Your Parent’s Aged Care Funding

A practical guide for adult children and family advocates: If you’ve recently found yourself responsible for managing your parent’s aged care, you’re not alone. And given the complex nature of Support at Home, it’s only expected to feel overwhelmed or confused.

The shift to the new Support at Home program has added a fresh layer of complexity, leaving many families unsure whether their parent’s funding is safe, whether they’re actually using it effectively, or whether important deadlines have already passed them by.

The concern is understandable. And it’s definitely not unfounded – there are real deadlines and real rules that, if missed, can result in funding being withdrawn or lost.

But here’s the good news: Most of the risk is avoidable. With a few proactive conversations and a bit of forward planning, you can make sure your parents (or loved ones) receive the full value of their entitlements – without the stress of scrambling at the last minute.

Here, we share your simple guide to understand exactly what’s changed with Support at Home, what the key deadlines are, and the specific actionable steps you can take.

What Happened to Home Care Packages?

For years, Home Care Packages (HCPs) were the primary way Australians accessed government-funded care at home. But as of November 2025, that program has ended – see our in-depth guide to Support at Home changes here.

The Support at Home program has replaced both the Home Care Packages (HCPs) Program and the Short-Term Restorative Care (STRC) Programme. For families who already had a package in place, the transition was designed to be automatic – your parent’s funding moved across without the need to reapply from scratch.

However, the way funding works has changed significantly, and these changes also affect how families need to now plan and monitor spending going forward.

The most important shift: Rather than an annual lump-sum budget managed by a provider, funding is now distributed in quarterly budgets. This changes the rhythm of care planning considerably.

Here’s a quick comparison:

If you’re not sure whether your parent’s transition has been completed, you can contact their current provider directly to confirm. If the transition hasn’t happened yet, simply call My Aged Care on 1800 200 422.

The “No Worse-Off” Rule – And Why It Matters

This is one of the most important protections in the new system – and one of the least well-understood by families.

If your parent was already receiving or approved for a Home Care Package on or before 12 September 2024, they are covered under the grandfathering provisions of the new Support at Home program. We break this down further in our guide to Support at Home here.

What does this mean in practice? Grandfathered participants pay nothing, or less than they would under the new contribution rates. However, it’s important to understand that service fees are set by the provider and apply equally across all participants – whether grandfathered, transitional, or new. The grandfathering provisions affect what your parent contributes, not what the provider charges.

The catch: This isn’t always clearly explained to families navigating the transition. If you’re unsure how your parent’s contributions are being calculated, it’s worth asking directly.

Practical tip: Ask your parent’s provider, “How are my parent’s contributions being calculated under the grandfathering provisions?” If you’re not getting a clear answer, call My Aged Care on 1800 200 422 for clarification.

On the question of unspent funds: If your parent had a Home Care Package with unspent funds as of 31 October 2025, those funds were carried across in full under Support at Home. They weren’t lost at the point of transition – but new rules do apply to how funds accumulate going forward, and we can help you to understand the transition.

The 56-Day Provider Window: The Deadline Most Families Don’t Know About

This is the single most urgent piece of information in this guide, and it deserves your full attention.

Once your parent receives their letter confirming Support at Home funding approval, a 56-day clock starts.

Within that 56-day window, two things need to happen:

1. Choose a registered Support at Home provider
2. Sign a service agreement with that provider

Only after you’ve chosen a provider and signed an agreement, can your services commence following this window. If this doesn’t happen within 56 days, the funding is withdrawn and reallocated. Your parent would need to go back into the queue and wait again.

A 28-day extension is available, but only if you proactively contact My Aged Care to request it before the deadline passes. It is not granted automatically.

Why does this catch families off guard?

The approval letter often arrives at a time when families are still researching providers, coordinating among siblings, or managing other priorities. The consequence, losing the funding entirely, may not be spelled out as clearly as it should be.

What to do right now:

• Check whether your parent has received an approval letter and note when it arrived
• Calculate the 56-day deadline from that date
• If a provider hasn’t been selected yet, begin comparing registered providers immediately via the Find a Provider tool at myagedcare.gov.au
• If the deadline is approaching, call My Aged Care on 1800 200 422 to request the 28-day extension before time runs out (if eligible to do so; of course, this will be determined upon your call)
• Once a provider is selected, prioritise getting the service agreement signed – don’t wait for a routine appointment if time is short

Already past 56 days with no provider?

Call My Aged Care immediately on 1800 200 422. In some circumstances, re-assessment may be possible. Don’t assume the opportunity is gone without checking.

How Quarterly Budgets Work (And How to Stay On Top Of Them)

The shift to quarterly budgets is one of the most significant practical changes under Support at Home – and it requires a different mindset from the old annual package model.

Under the previous system, unspent funds simply accumulated and rolled over. Under Support at Home, at the end of each quarter, only up to $1,000 or 10% of the quarterly budget (whichever is lower) carries forward. The rest does not roll over.

In practice, this means that consistently underspending each quarter results in funding being lost, not saved for later.

Why Families Underspend

There are a few common reasons families find themselves in this position:

• Provider shortages mean some services can’t be booked even when funding is available
• Families aren’t aware they can use funding more flexibly than they’ve historically done – for a wider range of services than their parent has previously accessed
• The quarterly planning conversation with the provider isn’t happening proactively enough

How to Stay On Top Of It

The most effective strategy is to set a quarterly check-in with your parent’s provider, ideally 4 to 6 weeks before the end of each quarter. Use that conversation to review:

• How much of the quarterly budget has been spent
• Whether there are services your parent needs but hasn’t yet scheduled, such as transport to medical appointments, allied health sessions, and/or additional cleaning
• Whether any one-off items or catch-up services could make use of remaining budget before the quarter closes

You should also be asking your provider for a written breakdown of quarterly spending. If this isn’t being provided automatically, request it. Transparency around how your parent’s money is being spent is not a favour — it’s something you’re entitled to ask for.

Think of it this way: The quarterly budget works on a “use it or lose most of it” basis. A small buffer carries forward, but the bulk of unspent funding doesn’t. Planning 6 weeks ahead of quarter-end makes a real difference to how much your parent actually benefits from their entitlement.

What’s Fully Funded Vs. What You Contribute Towards

One of the most common sources of confusion, and frustration, for families is not knowing which services are covered in full and which attract out-of-pocket contributions.

Under Support at Home, services fall into three broad categories, each with a different funding arrangement:

Why does this matter for making the most of your parent’s funding?

Understanding this tiering helps families make smarter decisions about where to direct funded support. For example, prioritising fully funded clinical care services – ensuring your parent is receiving the nursing care, physiotherapy, or medication support they’re entitled to, which means that funding is being used where it has the greatest health impact and costs you the least.

For everyday living services like cleaning and gardening, which attract higher contributions, some families choose to supplement privately if that’s financially viable – freeing up the funded budget for higher-value services.

Contribution rates are individually means-tested and will vary based on your parent’s income and assets. Use the fee estimator at myagedcare.gov.au for a personalised calculation, or call 1800 200 422 to speak with someone who can walk you through the specifics.

Your Advocate’s Checklist: What to Do Right Now

Here’s a practical checklist you can work through to make sure nothing important falls through the cracks:

• Confirm the transition from Home Care Package to Support at Home has been completed
• Ask the provider whether the “no worse off” fee options have been discussed and documented
• Check whether an allocation letter has been received – and calculate the 56-day deadline
• If no provider has been signed yet, begin the search immediately at myagedcare.gov.au
• Request a 28-day extension from My Aged Care if the 56-day deadline is approaching
• Set up a quarterly budget review conversation with the provider (6 weeks before quarter-end)
• Ask for written spending statements each quarter
• Review which services are clinical (fully funded) vs. everyday living (higher contribution)
• Use the My Aged Care fee estimator for a personalised contribution calculation
• Keep a record of the provider service agreement and review it annually

The Bottom Line

Navigating aged care as an adult child or advocate is genuinely hard – and the shift to Support at Home has added new complexity at a time when many families are already stretched.

But the most common risks – missed deadlines, unused quarterly funding, overpaid contributions, or an unconsidered choice about fee arrangements, are all avoidable with a bit of proactive attention. You don’t need to be an expert. You just need to know the right questions to ask, and who to call when you need help – and that’s where we come in.

Need Help? We’re Here to CareAbout Your Loved Ones

Navigating aged care can feel overwhelming, isolating, and stressful, but… it really doesn’t have to be.

Whether you’re starting services for the first time or looking to switch from your current provider, we’re here to help guide you through all of it – and completely free of charge. We provide expert-led advice, while offering the option to match your loved with a trusted provider (only after we’ve understood your loved one’s specific entitlements and options).

We’ve helped over 135,000+ Australian families find vetted, suitable, and trusted Support at Home providers. Our CareAbout aged care placement service is 100% free, 100% independent, and 100% personal.

How we help: We match you with providers based on your location, care needs, budget, and personal preferences. If you’ve been allocated funding, we’ll help you find the right provider well within your 56-day deadline. Already with a provider but ready for a change? We’ll make the transition seamless.

Ready to get started? Simply (free)call us today at 13 13 00 and significantly reduce the time, stress, and uncertainty of organising Support at Home.