With the new Support at Home aged care program launching on 1 July2025, many older Australians are keen to understand how the new fees will be structured now that participants are required to contribute towards the cost of care.

Understandably, the financial details are top of mind! While a comprehensive pricing guide has yet to be released by the government, one thing is clear: participants will receive more service hours for the same level of funding.

Key Changes to Increase Support Hours

Several important changes under the new Support at Home Scheme will lead to more hours of care:

1. Care Management Fees Now Capped
   The new system introduces a cap on care management fees, which previously reached as high as 15%. Now, these fees will not exceed 10% of the total funding, allowing more of the funds to go directly toward care services.

2. Elimination of Package Management Fees
   Under the current system, participants are charged up to 15% of their funding for package management. This fee will be removed under the new scheme, freeing up more funds for direct care services.

3. Shifting Admin and Compliance Costs to Hourly Rates
   Admin and compliance costs will now be included in the hourly rate for services. This means clients will only pay for the admin and compliance costs associated with the services they use. Although this may raise the hourly rate, it will ultimately save clients money, as they’ll only be charged for the services they receive, rather than paying admin across their entire funding package.

These changes result in more hours of direct care available to participants.

How Co-Contribution Fees Will Work

The new system also introduces a requirement for participants to contribute to the cost of services, with the rules varying depending on when they entered the system.

• 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’re a grandfathered participant, you won’t be asked to pay any fees and if you are already paying fees, you’ll be no worse off under the new scheme. Some participants will find they are better off!

• Transitional Participants
  For those approved for funding between 12 September 2024 and 30 June 2025, co-contributions will begin on 1 July 2025. The fee structure will be as follows:

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

Overall Benefits of the New System

Although the new system may appear complex at first, it offers better value for money and greater access to care. Participants will receive more direct care for their funding, supporting their ability to live more independently at home.

For further details, be sure to consult the factsheets for grandfathered and transitional participants (below).