From November 1, 2025, older Australians will see sweeping changes to the way in-home care services are funded, as part of a radical overhaul to the country’s aged care system. The government is introducing the Support at Home program, designed to simplify financial support for those who choose to remain in their homes rather than move into residential care. This new structure aims to create a more equitable and efficient system, but how will it affect those already receiving care, and what does it mean for the future of the sector?
The Support at Home program is a key part of the federal government’s broader reform of the aged care system, which has been deemed an “incredibly ambitious” overhaul. The changes promise to make aged care more tailored to individual needs, ensuring that older Australians pay only for the services they use. However, as these reforms take effect, a range of new complexities and challenges will also emerge.
Simplifying the Payment System: A Move Towards Fairer Contribution
Under the new system, Australians receiving in-home care will no longer pay the Basic Daily Fee, which was a fixed amount previously required from everyone, regardless of the services they used, reports Yahoo Finance. Instead, individuals will only be required to contribute based on the care they actually receive. According to Services Australia, this move aims to create a more tailored financial arrangement for each participant, determined after a means assessment.
For those currently on the Home Care Package, the transition will be automatic, with no action needed on their part. A letter outlining the new details will be sent to recipients in early November. However, the most significant change will be the introduction of a quarterly budget for every participant, linked to their care needs and goals. This shift is expected to help manage costs more effectively, ensuring that funding is allocated based on assessed priorities.
Potential Challenges and Future Reforms: Are Australians Ready for the Changes?
While the new system may appear beneficial on the surface, experts warn that some aspects of the reform could lead to increased costs for certain groups. Self-funded retirees in aged care, for instance, may see significant hikes in their fees. Changes to Refundable Accommodation Deposits (RADs) and the introduction of new non-clinical care contributions are expected to push costs upwards for many. According to Clarity Aged Care Advisors, these could reach between $20,000 and $50,000 extra per year for some residents.
This financial burden is part of a wider trend towards means-tested care, where residents will have to contribute towards services like catering, cleaning, and laundry. As well as affecting the daily lives of residents, these changes could also lead to concerns over the accessibility of aged care, particularly for those with limited financial means. The full impact of these reforms remains to be seen, but for now, a significant shift in the aged care landscape seems imminent.
