Big changes are coming to Australia’s aged care system on 1 November 2025, especially for those of us who want to stay in our own homes as we get older. These updates aim to make care safer, more respectful, and better tailored to individual needs, following the recommendations of the Royal Commission into Aged Care Quality and Safety.
If you’re like most older Australians who prefer to live independently at home, it’s important to understand what these new changes – now known as the ‘Support at Home’ program will mean for you.
Originally planned for 1 July 2025, the program has been delayed to 1 November 2025. It’s a major investment in home care, expected to help around 1.4 million Australians by 2035 as outlined by the Department of Health and Aged Care. The program focuses on three key areas:
- Medical care – fully covered by the government.
- Support for independence – helping you stay active and engaged.
- Everyday living tasks – assistance with things such as meals, cleaning, shopping, cooking or everyday household chores.
What’s the key change?
While medical care remains fully funded, you’ll now need to contribute to the costs of independence and everyday living services. This applies to everyone, including those on the full Age Pension. Payments will be based on your income and assets, according to the Age Pension Means Test.
To give you a clearer picture of these contributions, here’s how the co-payments for ‘Support at Home’ costs will generally work:
| Recipient category | Independence tasks (e.g., showering, medication assistance) | Everyday living tasks (e.g., cleaning, cooking, laundry) |
| Full Age Pensioners | 5% of the service provider’s fee | 17.5% of the service provider’s fee |
| Part Age Pensioners and Commonwealth Seniors Health Card (CSHC) holders | Between 5% and 50% of the service provider’s fee | Between 17.5% and 80% of the service provider’s fee |
| Self-Funded Retirees who are not eligible for CSHC | 50% of the service provider’s fee | 80% of the service provider’s fee |
Please note: These percentages are a guide based upon current information. Your actual costs will depend upon your income, assets, and what your chosen care provider charges. For example, if the service cost $100 an hour some part-Age Pensioners and all Self-Funded Retirees could end up paying around $50 an hour for personal care (such as help with showers) and $80 an hour for domestic assistance (such as cleaning or cooking).
The government has also said that there will be a lifetime cap on contributions across the aged care system, meaning no one will pay more than $130,000 for their non-medical care costs. Plus, if you were already receiving a Home Care Package as of September 12, 2024, you’ll keep your current payment arrangements or even pay less under the new system, so you won’t be ‘worse off’.
While these changes aim to improve the quality of aged care, they also bring new financial considerations for many. Understanding how these co-payments will affect your personal situation is key to making the most of the new Support at Home program.
If you’re finding it tricky to navigate these aged care decisions, or if you’re supporting older family members, getting independent advice can really help you understand your options and make informed choices. Retirement Essentials offers Aged Care Consultations to help you clarify what will be best for you and yours.
Having conversations about managing support at home or considering aged care?
How do you think these new contribution rules might affect your budgeting for everyday living?
