The first six months of the Support at Home Program
The new Aged Care Act came into operation on 1 November 2025, and with it, the introduction of the new Support at Home program, replacing Home Care Packages.
The program was introduced on a ‘no worse off’ principle where existing clients on home care packages were transitioned to the new model.
The inclusion of personal care services such as showering in the ‘Independence’ category has caused concerns for individuals and providers alike.
Under the new contribution rates, a full pensioner would pay 5% of the cost of that shower, while a self-funded retiree would pay 50%.
This change has been exacerbated by the decision to cap Care Management costs at 10% of the cost of the entire package. From a client’s perspective, their primary interaction is with the worker who attends their home. However, a provider also incurs care management and administrative costs to ensure that the service is delivered effectively by appropriately trained staff.
Under the previous model, this could amount to approximately 30% of package funding being allocated to Care Management and Package Management.
Under the new system, price increases in the hourly rate were necessary to cover the care and package management costs. The alternative would be to operate at a loss, which would eventually lead to an exit from the sector, leaving older Australians without support.
Standard participant contribution rates from 1 November 2025
| Age Pension status | Clinical care | Independence | Everyday living |
|---|---|---|---|
| Full pensioner | 0% | 5% | 17.5% |
| Part pensioner and eligible for a Commonwealth Seniors Health Card | 0% | Between 5% and 50% depending on income and assets | Between 17.5% and 80% depending on income and assets |
| Self-funded retiree | 0% | 50% | 80% |
In March, a coalition of MPs wrote to the Aged Care Minister, Sam Rae, seeking urgent changes to the Support at Home Program to resolve issues with the single assessment, categorisation of some personal care services into the Clinical Care category and a review of the 10% cap on case management.
Aged care providers, like Resthaven, continue to advocate for accessible aged care services, and are here to help you understand how Support at Home will work, and to make sure your care continues smoothly.
For further information about Support at Home visit https://www.health.gov.au/our-work/support-at-home/about
Opinion piece by Darren Birbeck
Chief Executive Officer
Resthaven Incorporated