Changes to Support at Home are around the corner

Commencement of the new Aged Care Act is only two weeks away. As part of the changes, everyone receiving a Home Care Package will move to the new Support at Home Program on 1 November 2025.

In preparation for this transition, the Department of Health, Disability & Ageing has sent letters to all participants notifying them of this change. These letters note that all clients will transition to the new Support at Home program and:

• Provide guidance on what clients can expect for their financial contribution towards independence support and everyday living services

• Explain what happens to any unspent funds the client has accumulated to 31 October 2025, and

• Detail what to expect next.

These letters also identify whether a client is grandfathered under the 12 September 2024 rule, and thereby eligible for the lower contribution rates. This grandfathering eligibility is important to identify not just for Support at Home, but also future residential care needs.

Services Australia will send a second letter to clients after 1 November verifying the new contribution rates.

Grandfathering concessions

Clients who were receiving or held approval for a Home Care Package on 12 September 2024 are “grandfathered” when the 1 November rules come into effect. This provides two key concessions:

1.      For support at home, contributions are capped at 25% of service costs (rather than up to 80% under standard contribution rates)

2.      If moving into residential care (anytime from 1 November 2025), they will be assessed under the old rules for living and care fees. New rules will still apply for accommodation costs.

Adviser actions

These letters will be important to keep on client files for advice purposes. We recommend that you ask your clients for a copy of their letters, so you can easily identify (and record) whether or not they meet the grandfathering conditions.

For Aged Care Steps members, we have added a new client article and social media post to the Business Toolkit. These are ready for you to use in your direct mail communications with clients or include in your client newsletter article. Log into the Business Toolkit and navigate to Marketing Tools > Ideas for marketing campaigns > Change ahead - home support.

It is important for clients in receipt of a means-tested pension that Centrelink/DVA records up to date to ensure their correct contribution rate is used.

Clients who are in receipt of a non-means tested pension, CSHC holder or self-funded retiree, will pay the maximum contribution rates unless they disclose their asset and income details to Services Australia.  The new assessment forms for Support at Home contributions have not been released, but we expect them to be available in time for the commencement of the new Act.

Understanding the letters

To help you decipher the Department's letters, below are extracts from the letters sent to clients and how they indicate whether the client is grandfathered or not.

You will also not have to contribute to Support at Home services under the independence or everyday living category.

Implication: Client is considered a full age pensioner who is grandfathered.

Your estimated contributions to Support at Home services under the independence category will be 5%. For services under the everyday living category your contribution will be 17.5%. These contributions will be discussed with you by your provider after 1 October 2025.

Implication: Client is considered a full age pensioner but is not grandfathered.

Your estimated ongoing contribution to Support at Home services under each of the independence or everyday living categories will be between 0% and 25%, and it will not be more than you currently pay.

Implication: Client is considered a part age pensioner, CSHC holder or self-funded retiree who is grandfathered.

You estimated ongoing contribution to contribute to Support at Home services will be between 5% and 50% under the independence category and between 17.5% and 80% in the everyday living category.

Implication: Client is considered a part age pensioner, CSHC holder or self-funded retiree but is not grandfathered.