The transition from the Home Care Package system to the new Support at Home program is well underway, and for many clients the next few months will determine what they pay – and how their services are structured – for years ahead.
If you currently receive home support or have received the recent correspondence from Services Australia dated 30 September 2025, now is the moment to ensure you understand what these reforms mean for you and what actions you may need to take.
Three Categories of Support With Different Contribution Rules
Under the Support at Home program, services are now classified into three categories:
- Clinical Care
- Independence Support
- Everyday Living
Here’s what that means for your out-of-pocket costs:
- Clinical Care services are fully funded by the Government.
- Independence Support services attract a contribution ranging from 5% to 50%.
- Everyday Living services attract a contribution ranging from 17.5% to 80%.
For self-funded retirees and part-pensioners, these contribution brackets create real cost differences, making it essential that your financial information is correctly recorded.
If You Don’t Disclose Your Income and Assets, You’ll Pay the Highest Rates
Your contribution rate depends entirely on the financial information held by Services Australia.
If you don’t disclose your income and assets, you are automatically placed into the highest contribution tier. For Everyday Living services, this could be as high as 80% of the cost.
This is one of the most urgent issues for clients to act on.
Grandfathering for Existing Clients
If you were already receiving a Home Care Package, or held approval for one, before 12 September 2024, you are protected under grandfathering arrangements. This caps your contribution rate between 0% and 25%, ensuring you are not disadvantaged under the new system.
However, this protection relies on your financial details being up to date.
Your Provider Should Be Contacting You Now
Your provider should by now be reviewing:
- your current care plan,
- how your services will be categorised under the new rules, and
- the pricing for each category within your new service agreement.
This conversation is important. The way your hours and services are allocated across Clinical Care, Independence Support and Everyday Living will directly determine your contribution rate.
Unspent Funds and Quarterly Budgets
Under Support at Home:
- You will receive a quarterly budget, and unused amounts will generally be subject to “use it or lose it” rules.
- Unspent Home Care Package funds accumulated up to 31 October 2025 remain available to you for approved future services, equipment or modifications.
Why You Should Contact Us Now
Services Australia will continue issuing letters confirming contribution rates, but many clients, particularly those not receiving an income support payment—may need to complete the SA456 Income and Assets form to avoid being charged the highest rates.
We can help you:
- review your support letter and confirm your grandfathering status,
- determine whether you need to lodge the SA456 form,
- assist in completing the form correctly,
- understand the impact of contribution rates on your retirement cashflow, and
- ensure you don’t pay more than required.
Your Next Step
If you are receiving Support at Home services or have received the recent letter from Services Australia, please contact your adviser now. The sooner your financial information is updated, the sooner your contribution rates can be correctly assessed, and the lower your risk of being overcharged.
We’re here to guide you through the process, keep your contribution rates accurate, and help ensure you make informed decisions about your ongoing care and wellbeing.