Home Care changes – Arrowstone can assist you, your family or friends in understanding and assessing the impact of the new rules.
Commencing Home Care and managing the eventual transition into Aged Care is a difficult process for retirees and their families. Understanding the aged care system, as well as the interaction with social security and other rules is complex. As an accredited Aged Care Adviser, we are happy to assist families in understanding and advise on all the financial aspects of commencing Home Care or moving into Residential Aged Care.
New rules impacting Home Care
The Aged Care Bill 2024 was introduced to Federal parliament on 12 September 2024 and the new legislation was passed on 25 November 2024 and is now law.
Overview
A new Support at Home program from will commence from 1 July 2025 to support older Australians wishing to remain in their home. This program replaces the current Home Care Packages Program and Short-term Restorative Care Programme from that date. The current Commonwealth Home Support Program will transition across to the new program from 1 July 2027.
Support at Home program
This new program will include:
▪ clinical care (eg nursing care, occupational therapy)
▪ maintaining independence (eg help with showering, dressing and taking medication)
▪ everyday living activities (eg cleaning, gardening, shopping and meal preparation).
A list of specific services will determine the services under this system.
The Government will fund the costs associated with clinical care. However, individuals will be asked to contribute to costs associated with maintaining independence and everyday living activities.
A ‘budget’ will be provided to an individual that can be used across the quarter for those services needed based on classification following an Aged Care Assessment Team (ACAT) assessment.
Where the full amount of allocated funding is not used in a specific quarter, individuals can carry across the higher of $1,000 or 10% of the quarterly budget to the next quarter.
The Government will set price caps for services that are provided.
Most of the changes will only impact new aged care residents entering care from 1 July 2025. The ‘no worse off’ principle ensures that if you’re receiving care before 1 July 2025, your fees will continue to be determined under the existing rules, unless you move to a new aged care provider and choose to be under the new rules.
Classification
Currently, Home Care Packages have four classifications. The Support at Home program will introduce 10 new funding classifications, including eight ongoing classifications and two short-term classifications (restorative care pathway and end-of-life care pathway).
Contribution toward the cost of services
Individuals who have the financial means will be asked to contribute towards the cost of services for maintaining independence (eg showering) and everyday living (eg cleaning) activities. Clinical services (eg nursing) will be fully funded by the Government.
The amount required to be contributed is means-tested based on income and assets tests with details to be provided in the Rules that support the legislation. This is a change from the current Home Care Packages, which is only income tested.
Existing Age Pension recipients do not need to provide any details. However, self-funded retirees and Commonwealth Seniors Health Card holders should provide details on income and assets, as well as update any change in their circumstances, to ensure the appropriate contribution amount is calculated.
The amount contributed is determined as a percentage of the price of each service based on their means tested class (eg full pensioner). A service provider can set service prices, however, prices cannot exceed the price cap set by Government.
The following table summarises the percentage contribution that an individual will make towards services delivered:
A budget will be provided on a quarterly basis and contributions are only payable for services that have been delivered. Providers can only draw on an individual’s budget after services are provided.
The above approach of a percentage contribution to only those services provided differs from the current Home Care Package assessment. Currently, fees for Home Care Packages are determined as follows:
End of life care
Additional funding will be provided to eligible Australians who have less than three months to live and wish to remain in their own home. These individuals will be given priority access to the program’s highest funding classification providing $25,000 over a 12-week period for additional home care services.
Independence at home
Separate Government funding will be available to allow eligible individuals access to assistive technology and home modifications. This is a separate scheme which will have a list of specific options that the Government will fund.
The Short-Term Restorative Care Programme will change to the Restorative care pathway. This is designed to increase the number of places and duration of support.
Existing Home Care Packages
All individuals who are currently receiving support via a Home Care Package will move to the Support at Home program from 1 July 2025. The same level of funding will be maintained and any unspent funds retained.
Individuals on the National Priority System or have been approved for a Home Care Package as of 30 June 2025 will receive a Support at Home budget equivalent to the approved package at the time of assessment. If a new assessment is undertaken and a higher level of funding is required, this will be provided under the Support at Home classification.
The ‘no worse off’ principle applies to those individuals receiving or assessed for a Home Care Package on or before 12 September 2024. These individuals will either continue to make the same contributions or a lower amount under the Support at Home program.
Commonwealth Home Support Program
The Commonwealth Home Support Programme (CHSP) provides entry level support services, such as help with transportation, meals and social support. The program generally provides services for persons aged 65 and older (50 and older for Aboriginal and Torres Strait Islander people) and their carers so that they can continue to live longer at home and remain in their local community with minimal assistance.
Clients may pay fees for the services received, which is the difference between the actual cost of the service and the Government subsidy paid to a CHSP provider. Although CHSP is not means tested, the Government provides guidelines to providers on setting prices and seeking a contribution from recipients. The aim is to ensure that only those who have the financial capacity will contribute to the cost of their care. If a client cannot afford the fees stipulated, they cannot be denied access to services. All providers must have a documented and publicly available policy.
Where the care and services required extends beyond what CHSP can provide, the client may consider being assessed for a home care/support at home package. This may be a suitable next step for clients who want to remain at home, rather than move into a residential aged care facility.
This program will transition to the Support at Home program from 1 July 2027.
Please feel free to contact us to discuss and/or obtain advice on this topic.