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Introduction: A New Era of In-Home Aged Care Begins

From November 2025, Australia’s in-home aged care system will undergo a major transformation with the introduction of the Support at Home Program. This long-awaited reform will consolidate the Commonwealth Home Support Programme (CHSP), Home Care Packages (HCP), Short-Term Restorative Care (STRC), and parts of other fragmented programs into a single, unified structure.

While the reform promises streamlined access, improved flexibility, and greater consumer choice, it also introduces a fundamentally new framework for how costs, services, and entitlements are calculated and managed.

For older Australians, carers, and financial advisers, understanding the financial structure of the Support at Home Program is essential to avoid surprises, optimise entitlements, and make informed decisions about care planning and funding.

In this article, we break down the November 2025 changes in detail — focusing on what services are available, how they are costed, how entitlements are allocated, and what this means for individuals navigating the aged care system.

November 2025 Home Care Changes

Why the System Is Changing: A Snapshot of the Royal Commission Findings

The 2021 Royal Commission into Aged Care Quality and Safety highlighted several flaws in Australia’s aged care system, particularly in home care. These included:

Long wait times for Home Care Packages
Underspending of allocated care funds
Fragmented and inconsistent service access
Lack of transparency in fees and service pricing
Inflexibility in tailoring care to changing needs

The Support at Home Program is designed to address these issues through a simplified structure that prioritises equity, transparency, and consumer empowerment — but it also comes with a new set of financial and practical considerations.

The Core of the Reform: Consolidating Four Programs Into One

The Support at Home Program will replace:

CHSP – entry-level support with limited means testing and low co-payments
HCP – tiered packages (Levels 1–4) with individual budgets
STRC – short-term restorative interventions
DVA and other community programs (where applicable)

By unifying these into a single model, the government aims to remove inefficiencies and provide needs-based support regardless of prior program eligibility.

What Is Changing? An Overview of the Support at Home Model

Feature	Current System	Support at Home (from Nov 2025)
Program Structure	Four separate programs	One integrated program
Funding	Fixed package levels (HCP) or block grants (CHSP)	Individualised, needs-based budgets
Access	Different eligibility rules	Streamlined via My Aged Care
Unspent Funds	Retained and rolled over	No rollover – budgets reset annually
Co-payments	Inconsistent and provider-driven	Government-set standard fee schedule
Services	Varies widely	Nationally defined service list

The End of Home Care Package Levels

One of the most important changes is the removal of HCP levels (1–4). These packages previously allocated fixed annual budgets, such as:

Level 1 – ~$9,200 per year
Level 2 – ~$16,100 per year
Level 3 – ~$35,000 per year
Level 4 – ~$53,300 per year

This rigid structure often failed to meet individual needs, leading to under- or over-funding, long waiting lists, and funding inefficiencies.

From November 2025:

Care needs will be assessed via a comprehensive tool, resulting in a personalised care plan and budget
Budgets are allocated based on actual needs — not arbitrary levels
Reassessments can be conducted when care needs change

How Services Will Be Delivered: A Nationally Standardised Menu

Support at Home will operate under a nationally standardised list of services, grouped into key categories such as:

Personal care (e.g. bathing, dressing)
Domestic assistance (e.g. cleaning, laundry)
Nursing and clinical support (e.g. wound care, medication management)
Allied health (e.g. physiotherapy, occupational therapy)
Meals and nutrition (e.g. meal preparation, delivery)
Transport
Social support
Home maintenance and modifications

Implication:

Consumers will have clarity on what’s available, who provides it, and how much it costs, removing much of the confusion that has existed under HCP and CHSP.

How Entitlements Are Determined: The New Assessment Process

The My Aged Care assessment system will continue to serve as the gateway, but with an updated functional assessment tool that will determine:

The level of support required
The type and frequency of services recommended
The corresponding individual budget allocation

This needs-based model means that funding is no longer “packaged” — it is tailored. However, consumers must proactively manage their budget to ensure services remain within allocated limits.

Co-Payments and Contributions: A Shift Towards User Pays

Under the new system, a standardised client contribution schedule will apply across all services. This addresses the current inconsistency where providers can set their own fees and contribution expectations.

Key Points:

Contributions will be set by the government
Income testing will continue to apply
Concessions and hardship waivers will be available
Providers cannot charge more than the set rate

Example (indicative only):

Service Type	Standard Hourly Rate	Pensioner Co-Payment	Self-Funded Retiree Co-Payment
Personal Care	$80/hr	$12/hr	$25/hr
Domestic Assistance	$60/hr	$10/hr	$20/hr
Allied Health	$120/hr	$20/hr	$40/hr

Unspent Funds Are Gone: “Use It or Lose It” Funding

Currently, many HCP recipients accumulate unspent funds — sometimes in excess of $10,000 — due to underspending or service delays. From November 2025:

Budgets will not carry forward
All funding is tied to service delivery only
Providers will be paid in arrears for actual services delivered

Implications:

Consumers and families must actively manage care plans
There is a greater incentive to use all allocated services
Less flexibility to defer care in favour of future needs

This represents a paradigm shift from passive accumulation to active engagement in care management.

Provider Payment Reform: Better Accountability, Greater Consumer Control

Under the new model:

Providers no longer receive upfront lump sums
They are paid only for services delivered, based on agreed rates
This prevents “hoarding” of client funds and promotes transparency

Consumers can:

Access real-time information on how their budget is spent
Easily switch providers without financial penalty
Avoid the current friction around unspent funds when changing providers

Pricing Regulation: No More “Wild West” Service Charges

Under HCP, some providers have charged administrative fees of 20–40% of a client’s package. From November 2025:

Providers must adhere to a pricing cap for each service
Administrative charges are banned or tightly controlled
All prices must be disclosed upfront and compared via My Aged Care

Impact:

More funds go directly to care services
Easier to compare value between providers
Reduced risk of overcharging or hidden fees

Flexibility Within the Budget: More Consumer Choice, Within Limits

Consumers will have greater choice and flexibility to:

Mix and match services based on their care plan
Change service frequencies or providers
Self-manage their plan (subject to new rules)

However, there are limits:

Services must fall within the approved list
Certain high-risk services may require medical approval
Some items (e.g. holidays, gym memberships, luxury items) remain excluded

Equipment, Aids, and Home Modifications: What’s In and What’s Not

One area that remains complex is what equipment and modifications are funded. Under Support at Home:

Basic aids (e.g. walkers, shower chairs) may be covered
Major modifications (e.g. ramps, bathroom renovations) may require co-contributions
Items must be clinically justified and linked to a care plan

Families should work with care coordinators and advisers to determine:

Whether the item is approved
Whether out-of-pocket costs apply
Whether private purchase or NDIS/DVA funding is preferable

Transitional Issues: What Happens to Existing Package Holders?

If you are receiving care under HCP or CHSP in late 2025, you will transition automatically to the Support at Home Program. Key points:

Existing budgets may be reassessed
Service continuity will be prioritised
Unspent funds may be clawed back or redirected (subject to government policy)

Advisers should review care plans before November to:

Maximise service delivery under current rules
Avoid sudden funding reductions or service gaps
Prepare for reassessment or change of providers

What About Self-Managed Home Care?

Self-management options will remain available under the new system, but:

Providers must still deliver services (you can’t pay a family member)
Fees for administration must be minimal and disclosed
All spending must align with the care plan and approved service list

Self-management offers flexibility and cost-efficiency but requires diligence. It’s best suited to:

Tech-savvy clients or families
Those seeking direct control over provider selection
Clients with predictable, low-complexity needs

How This Affects Financial Planning and Centrelink Entitlements

Home care fees and budgets do not directly affect Age Pension entitlements — but strategic interactions exist.

Key Planning Considerations:

Co-payments and service fees reduce surplus income
Declining health may warrant early drawdown of super or savings
Gifting assets to avoid fees is subject to Centrelink rules
Additional spending (e.g. private care) is not tax-deductible

For self-funded retirees, it’s important to:

Understand the cumulative effect of fees
Plan for future transitions to residential care
Review asset structuring in light of changing needs

The Role of Financial Advisers in the New Home Care Landscape

The new model demands active engagement, planning, and oversight, particularly for clients who:

Have complex family or financial structures
Are self-funded or near the Age Pension threshold
Are transitioning between care settings
Want to preserve wealth while ensuring care quality

Financial advisers can support clients by:

Modelling out-of-pocket costs across scenarios
Identifying Centrelink and tax implications
Structuring income to meet care needs sustainably
Coordinating legal advice (e.g. enduring powers of attorney, family agreements)

Conclusion: November 2025 Is a Turning Point for In-Home Care

The Support at Home Program represents the most significant shake-up in aged care since the introduction of Home Care Packages over a decade ago. While the new system promises simplicity and fairness, it also demands proactivity, financial clarity, and ongoing care management.

Key takeaways:

Funding is now needs-based, not level-based
There are no unspent funds — use your budget or lose it
Co-payments are standardised but can still be substantial
Planning now helps avoid surprises during the transition
Financial advice can optimise both care outcomes and affordability

Next Steps: What You Should Do Now

Review your current care plan and spending
Speak with a financial adviser about how the reforms may impact you
Discuss care preferences with your family or attorney
Consider early reassessment if care needs are rising
Prepare for the transition — don’t wait for November to act

Need help navigating the 2025 home care changes?
Our team of aged care financial specialists can help you understand your entitlements, maximise your care budget, and protect your financial future.

Book a confidential consultation today and take control of your aged care journey.