From November 1, Australia’s aged care system enters a new phase — one that could bring clarity for some and financial strain for others. For older Australians receiving care at home, the shift to the new Support at Home model introduces a major change: more user-pays costs, with providers setting their own prices until 2026.
That’s daunting enough if you’re living on a fixed income. But what if you’re broke — or close to it?
Many families are only just coping with current home care fees, let alone new contributions that aren’t yet fully transparent. The good news? If you already have a Home Care Package or were approved before 12 September 2024, you’re protected under a “no worse off” rule. But what that means — and what to do if you can’t afford rising care costs — isn’t always clear.
This article breaks it down:
- What’s changing in November
- Who’s protected (and who’s not)
- And how to get support if you can’t pay
Because navigating aged care shouldn’t be another full-time job.
What Exactly Is Changing in November?
November 1 marks the start of the biggest funding shift in aged care in over a decade. The reforms, part of the Aged Care Act 2024, introduce a new national system called Support at Home, replacing the existing Home Care Packages. This shift is designed to streamline services — but it also alters how much people may have to pay.
Support at Home replaces Home Care Packages
Under the new model, all in-home care recipients will pay what’s called a participant contribution. Unlike the current capped fees, these charges are based on provider-set prices — meaning costs could vary between providers until the government introduces price regulation in July 2026.
While many care recipients already pay something towards services, this introduces a more market-driven approach. There’s also less direct control from government over what’s charged in the interim.
Residential Aged Care Costs Also Changing
If you or a loved one enters residential aged care after 1 November, two new daily fees will apply:
- Hotel Services Contribution (HSC) – covers things like meals, laundry, cleaning
- Non-Clinical Care Contribution (NCCC) – supports general wellbeing and activities
These replace the current Means-Tested Care Fee for new residents. Together, they could amount to over $100 per day. While a lifetime cap of around $130,000 applies, the day-to-day impact may be significant — especially for those with limited assets.
Who Sets the Prices?
For now, providers do. While the government plans to regulate home care prices by July 2026, we’re entering an 18–24 month window where costs could increase in unpredictable ways.
In short:
- In-home care will feel more like a marketplace.
- Residential care fees shift from income-tested to flat contributions.
- Transparency and affordability are still evolving.
Who’s Protected (And What Does “No Worse-Off” Really Mean)?
One of the most reassuring parts of the aged care reforms is the government’s promise: no one currently receiving care will be financially worse off.
But what does that actually mean — and who does it apply to?
Who’s Covered Under the “No Worse-Off” Rule
You’re protected if:
- You already have a Home Care Package before 12 September 2024
- You’ve been approved for a package and are waiting for services to start
- You’re on the National Priority System list and still awaiting allocation
For residential care, protections apply if:
- You move in before 1 November 2025 — your fees will stay under the current system, not the new flat-rate contributions
This isn’t something you need to apply for — eligibility is automatic. Your care plan will be reviewed and transitioned, but your new costs under Support at Home will be equal to or lower than what you were paying before.
What You’ll Still Pay (And What You Won’t)
Let’s say you’re currently paying a basic daily fee and an income-tested fee under your Home Care Package. Under the new system, your provider may set higher prices — but you will not be required to pay more than your current rate.
The government is essentially covering the gap behind the scenes to ensure you’re not hit with a cost increase simply because of the policy shift.
Similarly, if you’re already living in residential care, you won’t be moved to the new hotel-style fees. You’ll continue paying under the Means-Tested Care Fee system.
Who’s Not Covered?
If you:
- Haven’t yet applied for a package by 12 September 2024
- Enter residential care after 1 November 2025
- Change providers and re-enter as a “new client” without retaining your previous package
…you’ll be subject to the new fee structures, and provider-set prices in home care until price caps are introduced.
What If You Can’t Afford the Costs?
For many older Australians — especially those on the Age Pension or living with limited savings — even small increases in care costs can tip the balance from “just managing” to “not coping.” The new system is meant to be fair, but until price regulation kicks in mid-2026, affordability may vary widely.
So what can you do if the numbers don’t work?
1. Apply for Financial Hardship Assistance
If you’re struggling to pay your fees — either at home or in residential care — you may be eligible for hardship assistance. This applies to:
- Basic daily fees
- Care contributions
- Accommodation costs in residential care
Hardship supplements can reduce or eliminate certain charges. To apply, you’ll need to demonstrate financial stress and provide evidence of your income and expenses. The application is made through Services Australia, not your provider.
2. Reassess Your Means Test
Sometimes fees are higher than they need to be because your income or asset assessment is out of date. You can:
- Request a new means test
- Update asset valuations
- Seek advice on how specific expenses (like rent or medical costs) may affect your assessment
This can lead to a reduction in your expected contributions — especially if your circumstances have recently changed.
3. Consider Transition Options
If you’re waiting for a Home Care Package and can’t afford private services in the meantime:
- You may be eligible for Commonwealth Home Support Programme (CHSP) services, which are often lower-cost and more flexible
- Talk to My Aged Care about short-term restorative care or interim packages
It’s not perfect, but it can bridge the gap.
4. Speak Up Early
Your provider may be able to adjust your care plan to prioritise essential services within your budget. They may also offer payment plans, discounts, or bundled options.
And don’t forget: under the “no worse-off” protections, if you’re eligible, you should not be charged more than what you’re paying now. If you’re being quoted higher, ask why — and get it in writing.
Why Are These Changes Happening?
These reforms aren’t just bureaucratic reshuffles — they’re a response to deep structural issues in Australia’s aged care system. The Royal Commission into Aged Care Quality and Safety, which concluded in 2021, made it clear: the system was underfunded, overly complex, and failing too many older Australians.
The Old System Was Cracking
- Too many programs: Home Care Packages, CHSP, private providers — all operating separately, with confusing rules and overlapping eligibility.
- Waitlists: Some people died waiting for a Home Care Package. Others declined rapidly because care came too late.
- Inequity: Two people with similar needs could pay vastly different amounts, depending on how and when they entered the system.
The goal of the Support at Home model is to simplify and unify services — and make funding more sustainable in the long run.
A Shift Toward Shared Responsibility
One of the biggest philosophical shifts is the expectation that those who can afford to contribute more should do so. That’s why:
- Providers will set their own prices (at least until July 2026)
- Residential fees are moving away from income-tested models toward flat daily contributions
- Lifetime contribution caps will limit the burden, but still reflect a co-payment ethos
The government’s rationale? To redirect more public funding toward those with limited means — and encourage financial responsibility among wealthier users.
“Australia’s aged care system must be fit for purpose, financially sustainable, and fair. That means rethinking who pays, and how.”
— Aged Care Taskforce Report, 2023
But Critics Are Watching
Advocates fear that market-based pricing in the short term could create gaps in access — especially for older people in rural areas, non-English speakers, and those without family advocates.
Without strong enforcement of the “no worse-off” rule and clearer guidance on pricing, some vulnerable people may fall through the cracks.
What You Can Do Right Now
Whether you’re already in care or trying to plan ahead, this transition doesn’t need to catch you off guard. The changes are big — but there are clear, proactive steps you can take to protect yourself or a loved one.
1. Check Your Approval Date
If you were:
- Approved for a Home Care Package before 12 September 2024
- Already receiving services under a Home Care Package
- Or are on the National Priority System
…you’re covered by the “no worse-off” rule. That means you won’t pay more under the new system. You don’t need to apply for this protection — but it helps to confirm your approval status via My Aged Care (call 1800 200 422).
2. Ask Your Provider for a Transition Plan
Your current home care provider should walk you through how your care package will be reviewed and restructured under Support at Home. Ask:
- How will your services be repriced?
- Will anything be removed or reduced?
- Are your fees expected to change?
If their answer isn’t clear or doesn’t match your current pricing, ask them to explain how the “no worse-off” rule is being applied.
3. Request a Fee Review
Even if you’re not eligible for automatic protections, you can still:
- Ask Services Australia for a reassessment of your means test
- Provide updated financial details if your circumstances have changed
- Apply for hardship assistance if paying would cause genuine financial stress
The earlier you ask, the more likely you’ll avoid last-minute shocks.
4. Talk to an Advocate
If things feel overwhelming, you’re not alone. Free, independent aged care advocates are available in every state and territory. They can:
- Explain your rights
- Assist with complaints or reviews
- Help you navigate confusing provider responses
Find support via OPAN (Older Persons Advocacy Network):
📞 1800 700 600 | 🌐 opan.org.au
5. Revisit Your Care Goals
Sometimes small changes to your care plan — reducing hours, adjusting services, or accessing CHSP options — can make the difference between unaffordable and manageable. It’s worth having a frank conversation with your provider.
Where to From Here?
Aged care is meant to offer support, not stress. But with the changes coming in November 2025, many older Australians and their families are feeling uncertain — especially around cost.
The government’s reforms aim to create a fairer, simpler system. Yet the reality is more complex. For some, costs may rise. For others, protections are in place — but not always well explained. And for people already living on the edge, even a small increase in daily fees can cause real hardship.
The key is acting early:
- Know your status — check if you’re covered by the no worse-off rule
- Talk to your provider — get a written breakdown of what’s changing
- Ask for help — advocates, financial advisers, and Services Australia are there for you
- Challenge what doesn’t feel right — you have rights, and you don’t have to go it alone
Quick Links & Resources
My Aged Care (eligibility, fees, approvals):
https://www.myagedcare.gov.au | 📞 1800 200 422
Hardship Assistance & Means Tests (Services Australia):
https://www.servicesaustralia.gov.au
Free Advocacy Support (OPAN):
https://opan.org.au | 📞 1800 700 600
Support at Home Reform Info:
https://www.health.gov.au
