On 1 July 2025, Australia’s aged care landscape will undergo a significant transformation with the launch of the Support at Home program.
Designed to replace the existing Home Care Packages (HCP) Program and Short-Term Restorative Care Programme, this initiative promises a more tailored and sustainable approach to in-home care.
However, the transition has sparked debate, particularly around pricing, with the government recently releasing new guidance to help providers navigate the changes. Here’s what you need to know about the program, its pricing framework, and what it means for providers and older Australians alike.
A Shift in Structure and Funding
The Support at Home program aims to support older Australians to live independently at home for longer.
It introduces eight levels of ongoing support (up from four under HCP), increases the maximum funding cap from $61,000 to $78,000 per year for those with complex needs, and prioritises early interventions like assistive technology and palliative care.
From 1 July 2025, providers will continue to set their own prices, much as they have done previously. However, this freedom comes with a catch: starting 1 July 2026, government-imposed price caps will take effect, ensuring costs remain manageable.
Until then, providers must ensure their prices are “reasonable and transparent,” reflecting the full cost of delivering services. This includes labour, administration, transport, package management, and a modest profit margin.
Unlike the HCP Program, where travel and management fees could be charged separately, these costs must now be bundled into a single unit price for each service. This shift has raised concerns, particularly for smaller providers who may lack the infrastructure to adapt swiftly.
Pricing Guidance: What’s Included?
The government’s pricing guidance, developed in consultation with providers, offers a clear framework. Prices must account for all delivery costs, and providers are required to publish standard rates on their websites and My Aged Care profiles by 1 July 2025.
New service agreements with clients, reflecting these prices, must also be in place by this date. To assist, a survey of over 300 HCP providers conducted in February 2025 has provided indicative price ranges, giving a snapshot of what the market might look like. These are not mandatory caps but benchmarks for comparison.
Here are some standout indicative prices (national median, with lower and upper ranges) in Australian dollars (AUD):
Nursing Care: $150 per hour ($125–$179)
Registered Nurse: $160 per hour ($144–$186)
Personal Care: $100 per hour ($85–$115)
Care Management: $120 per hour ($80–$150)
Allied Health (e.g., Physiotherapist): $185 per hour ($160–$210)
Transport: $70 per trip ($40–$97)
Meal Delivery: $15 per meal ($11–$22)
Domestic Assistance: $95 per hour ($83–$109)
These figures represent standard business hours, with costs potentially rising for services outside these times. For most services, pricing is time-based (e.g., per hour of face-to-face care), though transport is billed per one-way trip and meal delivery per meal.
Care management stands out, as it includes both direct (face-to-face) and indirect (e.g., planning) activities, billed hourly.
Consumer Protections and Flexibility
To safeguard older Australians, the government has introduced robust consumer protections. Providers must justify their prices with evidence, which the Department of Health and Aged Care or the Aged Care Quality and Safety Commission can request.
If prices exceed published rates on My Aged Care, explanations must be provided. The Commission can issue non-compliance notices or fines if pricing is deemed unreasonable.
Additionally, providers cannot double-charge for costs already covered by government grants, such as those for thin markets (areas with high delivery costs).
Participants won’t pay co-contributions for clinical care, including care management, but may face means-tested fees for “independence” or “everyday living” services, like domestic assistance.
A forthcoming calculator will help estimate these costs. Providers can also vary prices by time, day, or service type (e.g., kosher meals vs. standard), provided they remain justifiable.
Challenges and Opportunities
While the program offers flexibility, it’s not without challenges. Smaller providers, in particular, may struggle with the shift to direct consumer billing and bundled costs.
Industry voices, such as Nick McDonald of Prestige Inhome Care, warn that administrative burdens could lead to market consolidation, reducing options for those who prefer local, personalised services.
There’s also a risk that higher out-of-pocket costs could drive some to unregulated “black market” care, a concern echoed in the guidance’s emphasis on affordability and oversight.
On the flip side, the increased funding ceiling and focus on complex needs could enable more older Australians to stay at home rather than entering residential care.
The indicative prices provide a starting point for providers to benchmark their offerings, while the 2026 price caps promise long-term cost control.
What’s Next?
As 1 July 2025 approaches, providers must act quickly to consult with clients, update agreements, and publish prices.
For older Australians, it’s a chance to review options and ensure their chosen provider’s rates align with their budget and needs. If prices seem high, the guidance encourages discussion with providers or even switching, with no entry or exit fees permitted.
