What changes to Home Care Packages can you expect in 2025?

You've finally gotten comfortable managing your Home Care Package. But now, the entire system is about to change.

We're talking about the Support at Home (SaH) program, which will replace Home Care Packages (HCPs).

This will affect every provider and every client receiving aged care support in Australia.

But what does this mean for you, the care recipient?

Will your funding change? Will you need to pay more? And how can you make sure your care continues after 2025?

At Sensible Care, we understand that change can be confusing, especially when it affects your well-being and independence. 

That's why we've put together this clear, easy-to-follow guide to help you understand Home Care Package changes in 2025.

How are Home Care Packages changing in 2025?

Australia's in-home aged care system will enter a new era in November 2025, when Support at Home (SaH) officially replaces Home Care Packages (HCPs).

The Support at Home program will combine several existing aged care services into one streamlined system.

Apart from HCPs, this also includes the Short-Term Restorative Care Programme. 

The Commonwealth Home Support Programme (CHSP) will continue operating under the new Aged Care Act from 1 November 2025. But this program is going to fully transition to Support at Home no earlier than 1 July 2027.

The new system makes things easier, helping you find the right support, understand your options, and see exactly what happens to your funding.

Under the current HCP system, clients receive funding through one of four levels. It's the provider's job to manage those funds. 

But this often leads to confusion, especially around fees, inclusions, and flexibility. 

The new Support at Home model aims to fix that by offering:

• Simplified funding

Fewer program types and clearer service categories.

• Standardised price caps

The government will introduce maximum prices for services set by the government from 1 July 2026 to ensure fairness.

• Client contributions 

Most clients will pay an income-based share for certain services, while clinical care remains fully subsidised.

• Greater transparency

Clearer information about costs and services upfront.

If you're already receiving care, your services will continue without interruption. 

You'll shift into the new Support at Home structure, and your provider will be there to guide you.

What's new, and what stays the same?

The Support at Home program brings important updates to the funding, delivery, and pricing of care.

However, it's not a complete reset. 

What's changing?

1. Simplified funding and structure 

The current Home Care Package system has four fixed funding levels. Support at Home is going to organise support into clearer service categories. There will also be eight funding levels, allowing support to better match each person's care needs.

2. Standardised price caps across providers

Today, providers can charge different rates for the same services. Under Support at Home, there will be clearer information about provider prices and service inclusions. To further ensure consistency and fairness across Australia, we'll be seeing standard price caps from July 2026. Before this date, providers will continue to set their own prices but will be required to publish them for clients to compare.

3. Client contributions

Under the new rules, many people will pay a small, income-based amount toward some services, but clinical care will stay fully subsidised. Full pensioners will contribute only a small percentage for independence or everyday living services. Part pensioners and self-funded retirees will have to contribute a higher amount based on their income and assets based on an assessment by Services Australia. 

4. Service flexibility and personalisation

The new system will provide you with choice, whether you prefer to self-manage your services or have everything handled for you. You can adapt your care as your needs change.

5. Stronger compliance and quality standards

Providers will face clearer expectations around transparency, care quality, and communication. This will give clients more confidence and oversight.

6. New funding streams

The Support at Home program will also include direct funding for assistive technology and home modifications. It will also fund short-term pathways for restorative and end-of-life care.

What stays the same?

1. Government support for in-home care isn't going anywhere. The new system changes the structure of the funding model, not who it's for.
2. The new system preserves your freedom of choice. You can still choose the provider that best suits your needs and preferences.
3. Your essential services won't disappear. The new program will continue to offer personal care, cleaning, transport, allied health, and home maintenance.
4. Existing clients will transition to the new program. If you already receive a Home Care Package, you won't lose your funding. Your plan will move to the new system with support and guidance from your provider.

New service classification system

The Support at Home program introduces a completely redesigned funding model. This model will replace the current four-level Home Care Package system. 

It will make care plans more flexible, fair, and better matched to each person's level of need.

Eight-level classification system

Under Support at Home, there will be eight ongoing funding levels instead of four:

1. Level 1 - Entry-level support for occasional help with daily activities
2. Level 2 - Low-level, regular in-home help
3. Level 3 - Moderate ongoing support needs
4. Level 4 - Higher personal care and household help
5. Level 5 - Increased personal or allied health involvement
6. Level 6 - Moderate clinical or complex needs
7. Level 7 - High-intensity care and different service types
8. Level 8 - Very high needs or near full-time in-home care

People already receiving a Home Care Package will move to the new system with funding that matches the new levels. 

No one loses out financially during the transition.

Three service categories

Support at Home introduces a three-tier service model. It determines the amount participants contribute based on service type. They include:

1. Clinical Care—0% contribution

Nursing, therapy, and allied-health services remain fully subsidised.

2. Independence Support—5–50% contribution

Personal care, transport, and mobility supports.

3. Everyday Living—17.5–80% contribution

Cleaning, gardening, meals, and other household services.

A lifetime contribution cap of $130,000 will apply to keep care affordable.

People on full pensions will contribute only 5% for independence services and 17.5% for everyday living services. Those with higher incomes may contribute more.

This approach helps keep the system fair, sustainable, and accessible for everyone.

Three short-term pathways

Support at Home includes three short-term pathways for people needing temporary or intensive support.

Restorative Care Pathway

• Up to $6,000 funding for 12–16 weeks.
• Focuses on recovery and rehabilitation through allied health services.
• You can access it twice within 12 months (in separate quarters).
• Replaces the existing Short-Term Restorative Care Programme.

End-of-Life Pathway

• Up to $25,000 funding for 12 weeks (extendable to 16 weeks).
• For individuals with three months or less to live.
• Requires confirmation from a doctor or nurse practitioner.
• Funding is available right away to avoid waiting lists.

Assistive Technology and Home Modifications (AT-HM) Scheme

• Separate upfront funding from the regular quarterly budget.
• Three tiers of support:
  
  • Low: under $500
  • Medium: up to $2,000
  • High: up to $15,000
• 12-month funding periods for items such as ramps, rails, mobility aids, and adaptive equipment.
• Eliminates the need for clients to "save up" from their ongoing service budget before buying the equipment they need.

Client contributions and costs

When the Support at Home program begins, one of the most noticeable changes will be standard client contribution rules.

Under the current system, some providers charge their own basic or income-tested fees. The new approach will create a consistent national framework. 

However, note that not everyone will pay contributions. What you contribute (if anything) will depend on your:

• Income
• Financial situation
• The type of service you receive

For many older Australians, understanding these new contribution rules is one of the most important parts of preparing for the new program.

The goal of this reform is to make costs clearer, fairer, and more sustainable while protecting those on lower incomes.

What will change for you?

Although the contribution rules are becoming clearer, the total cost of care will depend entirely on your circumstances. 

Some people will contribute small amounts. Others, particularly full pensioners or those receiving clinical care, will continue paying nothing.

Here's what to expect:

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For most clients, the new system will mean clarity and predictability. You'll know what's covered, what's subsidised, and what (if anything) you're expected to contribute.

Rather than focusing on set weekly amounts, the Support at Home model calculates contributions as a percentage of the service cost.

That way, payments will be proportionate and fair.

Those who can afford to contribute a little more will do so, while those on lower incomes will continue receiving full or near-full subsidies.

Example: What it might look like

Let's say you currently receive a Level 3 Home Care Package and have a moderate income.

Under the current system, you might not pay any contribution at all. Or you may pay small, provider-set fees depending on your care agreement.

Under Support at Home, the process will be slightly different. You will contribute a percentage of each service's cost, not a fixed weekly fee.

For example:

• Clinical services will remain fully subsidised, with no client payment required.
• Independence services will attract a 5% contribution for full pensioners.
• Everyday living services may include up to a 17.5% contribution for full pensioners, while people on higher incomes may pay a little more.

Special considerations for self-managed clients

Under the current system, self-managed clients already enjoy more say over their services. They can choose who provides care, when, and how.

Under Support at Home, this flexibility will grow even further.

Here's what to expect:

1. More clarity and control

The Support at Home program will introduce standardised price caps and simplified categories later on. This will make it easier to compare services and understand exactly what you're paying for.

2. Client contributions

As with all clients, many self-managed participants will pay a small, income-based contribution. However, you'll also have the flexibility to plan your budget around your priorities.

3. Simplified budgeting

Support at Home will introduce clearer service categories. It will be easier to allocate funds to the support that matters most. 

4. Provider transparency

Because all providers must follow standard rules, you'll have a clearer view of your choices and costs.

Note that 10% of your care budget will automatically go to care management services. 

This approach ensures consistent care coordination for all participants. It applies to both care-managed and self-managed options.

What to expect and when

1 November 2025: Official launch of Support at Home

From 1 November 2025, the Australian Government will officially change the way it delivers aged care.

The long-running Home Care Package program will transition into the new Support at Home system.

Here's what that means for you:

If you already receive a Home Care Package

You won't lose your funding or your care. Instead, your current plan will move into the Support at Home model. 

Your provider will help translate your existing services into the new structure. So, if you currently receive personal care, you'll continue to access it under Support at Home.

Your level of care will remain in place. But some things will change, like service categories or their prices. 

As part of the reform, many clients will contribute toward some services according to income. However, people with lower incomes and those receiving clinical care may not pay at all.

Existing clients have different budgets than new ones at the same service level. This is because of a government policy designed to ensure existing clients are "no worse off" during the transition.

Existing HCP recipients will have their converted Support at Home budgets matched to the annual value of their current HCP level.

This includes any supplements or special payments they already receive.

This policy should apply only to the initial period of the new system. That's because it's meant to protect current recipients from losing out financially as the system changes.

If you're applying for care after November 2025

New clients entering aged care after 1 November 2025 will start directly under the Support at Home program. 

The new service categories and contribution structure will allocate your funding from day one.

You'll receive greater clarity about:

• What's covered
• What you contribute
• How you can personalise your plan

New Support at Home entrants will receive funding according to the new eight-level Support at Home structure.

This structure is typically different from the four HCP levels. It may provide different amounts, especially at mid and upper levels.

How Sensible Care will support you

As a provider that is fully prepared for Support at Home, Sensible Care has updated all systems, pricing, and processes to meet the new standards. 

Our team will:

• Map your current services to the new categories.
• Help calculate and optimise your client contribution.
• Provide straightforward information about any adjustments to your care plan.
• Offer personal guidance during every step of your transition.

How to prepare

Here's a simple step-by-step list to help you get started:

Step 1: Look over your current plan

Inspect your existing HCP plan, including:

• Your care level and funding amount
• The services you're using (e.g., cleaning, transport, allied health)
• Your monthly statements and remaining funds

This will help you see where your funding is being spent. It will also identify areas to adjust once the new system begins.

Step 2: Gather key documents

Keep your most recent documents in one place, including:

• HCP budget statements
• Care plan and service agreement
• My Aged Care assessment
• Income and financial details (for contribution calculations)

Having this information ready will make it easier to review your options and update your plan when the Support at Home program launches.

Step 3: Speak with your care team early

Ask your current provider:

• How will my care plan change under the Support at Home program?
• What might my client contribution look like?
• Will I still have access to my current services?
• Can I keep my preferred caregivers?

Step 4: Discuss Your Care Plan with Family

If a family member helps manage your care, include them in your planning. 

Go through your services, priorities, and expected contributions together. That way, everyone understands what will change and when.

At Sensible Care, we encourage open discussions between clients, families, and our team. It helps ensure your care plan reflects your needs, budget, and goals.

Step 5: Look into your management options

Under Support at Home, you'll have more flexibility in how to manage your care. If you want greater control over your services and spending, a self-managed plan could be a great fit.

Sensible Care offers both care-managed and self-managed options.

You can switch between models as your confidence or needs change, without losing your provider or starting over.

Step 6: Stay informed

Go through the Support at Home Manual published by the Department of Health and Aged Care to stay informed.

How Sensible Care can help with Home Care Package changes in 2025

The Support at Home (SaH) program is a major step forward for aged care.

While change can feel overwhelming, with the right support, it's also an opportunity to shape a care plan that truly fits your needs.

At Sensible Care, we're already prepared for the 2025 reforms. 

Our team is updating systems, refining services, and guiding every client through the transition. We can help you stay informed, confident, and in control.

Book a free consultation today to prepare early. You can also reach out to us if you have questions about Home Care Package changes happening in 2025.