Help and Advice

Understanding Support At Home Pricing

With the new Support at Home aged care program rolling out on 1 July, many older Australians are keen to understand how the fees will work. With participants now expected to contribute to their care costs, the financial details are understandably top of mind.

With the government still releasing details of what's to come, getting answers has been a challenge. However, even while we wait for the government to release a comprehensive price guide, one thing is now clear: participants will receive more service hours for the same funding.

This is the result of three key changes under the new Support at Home Scheme, including:

1. Capped Care Management Fees: The new system introduces a cap on care management fees, which were previously as high as 15%. Now, these fees will not exceed 10% of the total funding, meaning more of the funding can be spent directly on care services.
   
   
2. Removal of Package Management Fees: Under the current system, participants are charged up to 15% of their funding for package management. This fee will be eliminated under the new scheme, allowing more funds to go toward direct care.
   
   
3. Admin and Compliance Costs Shifted to Hourly Rates: Administrative and compliance costs will now be included in the hourly rate for services, meaning clients will only pay for the admin and compliance related to the services they use. While this will increase the hourly rate, it ultimately saves clients money as they’ll only be charged for the services they use. In combination with the reduction in care management fees, and cutting of package management, these changes result in more available hours for direct care services.

How Will Co-contribution Fees Work?

One other key change in new model is the requirement for participants to contribute to the costs of services, with the rules varying depending on when someone is approved for funding, and what an individual's income and circumstances are.

Grandfathered Participants: Those whose funding was approved before 12 September 2024 will transition to the new system on 1 July 2025 at the same funding level. If you are a grandfathered participant, you won’t be asked to pay fees if you haven’t been already.

Transitional Participants: Those approved for funding between 12 September 2024 and 30 June 2025 will begin contributing toward care costs on 1 July 2025. Fees will be structured as follows:

•         Clinical services will be free for everyone.
•         Independence supports (e.g. transport, personal care) will cost pensioners 5% and between 5-50% for others.
•         Daily living supports (e.g. cleaning, meal prep) will cost pensioners 17.5% and between 17.5-80% for others.

Overall, while the new system may seem complex, it ultimately provides better value for money and greater access to care. Participants will receive more direct care for their funding, enabling them to live more independently at home.

For more details, check out our easy-to-follow factsheets for grandfathered and transitional participants.

Need support with your Home Care Package?