Understanding the new costs of Home Care: what you need to know
As of July 2025, the Australian government is introducing significant changes to Home Care funding and services through a new program called Support at Home. This initiative is designed to address the rising demand for in-home care and reduce the financial burden on both recipients and the government. Here’s a breakdown of the upcoming changes and what they mean for you or your loved ones.
Quick highlights
- The government is investing $4.3 billion, aiming to support 300,000 more Australians and reduce waiting times
- There will be eight new levels of Home Care support, with up to $78,000 per annum in funding
- Existing Home Care recipients and those approved before July 2025 will transition to the new system without paying more than under the old system
- All clinical services (such as nursing care and allied health) under the new Support at Home Program will be fully subsidised by the government. This is a fantastic change and means that older Aussies will receive the clinical care they need without any out of pocket costs.
New funding structure
The revamped Home Care system will feature eight levels of support, a significant increase from the current four levels. Each level represents a different amount of funding, with the maximum level rising to $78,000 from the previous $60,000. This amount is an annual budget which can be used to purchase services that contribute to your safety and independence at home.
Categories of support
Under the new system, Home Care services will be divided into three main categories:
- Clinical care: this includes services like nursing and occupational therapy. The government will fully subsidise the costs for clinical care, regardless of your financial situation.
- Independence supports: services in this category help with daily activities like showering, dressing, and medication management. These supports will require some out-of-pocket expenses based on means testing.
- Everyday living supports: this category covers help with cleaning, gardening, and meal preparation. Out-of-pocket costs will apply, depending on your financial situation
Costs based on your financial status
Here’s a quick guide to what you might pay based on your financial situation:
Full pensioner:
– Clinical Care: 0% of service fee
– Independence Support: 5% of service fee
– Everyday Living Support: 17.5% of service fee
Part pensioner or Health Card Holder:
– Clinical Care: 0% of service fee
– Independence Support: 5-50% of service fee
– Everyday Living Support: 17.5-80% of service fee
*Learn more about Health Care Cards here.
Self-funded retiree:
– Clinical Care: 0% of service fee
– Independence Support: 50% of service fee
– Everyday Living Support: 80% of service fee
Additional changes and support
The new system will also introduce several other improvements:
- Regulated pricing: to prevent overcharging, a government regulator will set the maximum price for Home Care services.
- Increased support: a $25,000 payment will be available for recipients to spend their final three months in their own home (or that of a loved one), and a new 12-week program will offer help for recovery from illness or injury.
- Reduced waiting times: the aim is to cut wait times for Home Care Packages from 6-12 months to an average of three months by July 2027.
The Support at Home Program represents a major overhaul of Australia’s Home Care system, aiming to make in-home care more accessible and affordable while maintaining high-quality services. For anyone currently receiving or considering Home Care, these changes will offer more support and potentially lower out-of-pocket costs, depending on your financial situation.
