A major change is coming to aged care, and it could cost pensioners dearly. On November 1, 2025, the new Support at Home program replaces the existing Home Care Packages program. This new system forces everyone to co-contribute for things that previously were paid entirely from their home care package funding.
You’ll Pay for Help: All participants including full pensioners will be required to pay towards the cost of their Support at Home services. Co-payments will be determined by both an income and an asset test by Services Australia and will be payable to the provider for services purchased.
Most-Needed Services Are Most Expensive: “Everyday living services” like cleaning, gardening, and shopping will have the highest co-payment rates. Full pensioners to pay 17.5% part pensioners 17.5% to 80% while self-funded retirees pay up to 80% of the cost. “Independence services” like personal care, respite, transport, social activities will have contribution rates: full pensioners 5% part pensioners 5 to 50% self-funded retirees 50%. People may need to decide – do I have showers or meals – it will come down to how much you can afford.
3 everyday living services a week at an average SAH rate it will cost around $300 – full pensioner will need to co-contribute 17.5% pays $52.50 with self-funded retiree 80%, paying $240. More services = more money you will have to find for co-payment as you will pay per service.
Government says it will 100% of clinical services – but that may will be too late if you cant afford the help needed in the early stages and end up in hospital and then residential aged care.
Waiting Game for Hardship: financial hardship application is available, but delays are expected, potentially forcing pensioners to go without essential services if they cannot afford to pay whilst they wait for a determination.
Individuals already receiving a Home Care Package as of September 12, 2024 (not a typo – 2024 not 2025!) will be protected from a “no worse off” principle from these new payment arrangements. Hopefully Government reviews for fairness with a suggestion to make it 31 October 2025 – are they likely to? We’ll wait and see.
With a Senate inquiry now investigating the impact of the Government withholding home care funding, advocates are hoping the government will release much-needed funds to those assessed and waiting and reconsider full pensioner co-payments — before it’s too late.
