Australia Aged Care Support Package 2026 – What’s Coming

Australia is preparing for one of its most significant aged care overhauls, beginning 1 November 2025 and continuing into 2026, with the launch of the Support at Home program. This reform replaces two long-standing systems—the Home Care Packages (HCP) and Short-Term Restorative Care (STRC)—and introduces a simpler, more flexible approach to helping older Australians age independently at home. The government’s stated aim is to provide equitable access, fairer contributions, stronger protections, and more tailored care aligned with individual needs.

What Is the Support at Home Program?

The Support at Home program streamlines aged care funding and removes the complexity in the older HCP and STRC systems. Instead of only four package levels and a separate short-term care track, older Australians will now be classified under a more nuanced framework, ensuring support matches their assessed needs more closely.

Importantly, the Commonwealth Home Support Programme (CHSP), which serves a vast number of entry-level recipients, will continue until at least 1 July 2027, when it too will transition into the new system. This staged shift ensures stability for those receiving lower-intensity services.

The new system is designed with three key goals:

1. Stay at home longer: Giving people the right supports so they can age where they feel comfortable.
2. More choice and flexibility: Offering clearer categories of services and pathways.
3. Fairer financial contributions: Tailoring fees according to individual means, while protecting full pensioners.

Key Changes from 2026

The Support at Home framework introduces several structural reforms designed to correct long-standing issues with the old HCP and STRC model.

• Classifications: Moving from just four HCP levels to eight ongoing classifications, plus specific short-term pathways for Restorative Care and End-of-Life Care. This allows for more accurate matching of services to needs.
• Budget management: Instead of annual lump sums, funds will be allocated quarterly. To avoid wastage and unused balances, carry-over will be capped at 10% or a specific amount.
• Assistive Technology and Home Modifications (AT-HM) scheme: Dedicated funding ensures seniors can access mobility aids, home modifications, and assistive devices through a defined scheme rather than inconsistent package rules.
• Service categories: Care is divided into three categories—Clinical, Independence, and Everyday Living—reflecting the type of support required. Each category has tailored contribution rules, so that funding reflects the nature of services provided.
• Pricing reforms: From 1 July 2026, the government will introduce price caps across aged care services. This measure directly tackles concerns about inconsistent and sometimes inflated provider pricing. Until then, providers retain some flexibility.
• Consumer contributions: Fee structures will be linked not just to income but also to assets, ensuring those with higher capacity to contribute will do so. In contrast, full pensioners are expected to continue paying less, recognizing their limited means.

What It Means for Existing Recipients

The government has introduced a “no worse off” guarantee for those already within the system. If you had a Home Care Package in place, were waiting for one, or had been approved for one before 12 September 2024, you will be transitioned into Support at Home without facing higher fees in most situations. This grandfathering approach ensures the shift does not disadvantage current users of aged care services.

Assessment and Eligibility

A central feature of Support at Home is the use of the Integrated Assessment Tool (IAT), part of the new Single Assessment System. This tool standardises how aged care needs are evaluated, ensuring consistency across Australia. After assessment, older Australians are allocated to one of the eight ongoing classifications or placed into a short-term restorative or palliative pathway if appropriate. The aim is to reduce delays and confusion while making assessments clearer and outcomes more transparent.

Greater Support Pathways

Two new pathways address situations often poorly served under the older system:

• Restorative Care Pathway: For people who may regain or maintain independence with short-term interventions, such as therapy support or temporary equipment.
• End-of-Life Pathway: For people with terminal conditions and a prognosis of less than three months. This ensures dignity, comfort, and tailored services during the most sensitive phase of life.

Additionally, the defined Assistive Tech and Home Mods scheme ensures access to home ramps, mobility aids, communication devices, and other modifications critical to maintaining independence.

Fairer Contributions and Protections

One of the strongest points of feedback under the HCP program was inequitable costs. Some people with substantial financial resources paid only slightly more than full pensioners, while others felt overcharged by providers. The new contribution model is more nuanced:

• Full pensioners will remain protected and typically pay less.
• People with higher assets or income (such as part pensioners or self-funded retirees opting into services) will contribute proportionally more.
• Assessments will consider both income and assets, making fee structures fairer and more transparent.

Why These Reforms Matter

By 2026, an even greater proportion of Australians will be aged 65 or over, with demand for home care growing rapidly. Families often prefer to keep older relatives at home rather than in residential care, but the existing system has been criticised for being slow, complex, and inconsistent.

Support at Home directly addresses these concerns by:

• Ending long wait times linked to HCP packages.
• Ensuring funding reflects actual need.
• Eliminating unexplained provider fee differences through price caps.
• Giving more attention to early interventions that can keep people healthier for longer.

Looking Ahead

For individuals and families, the most important next step is to ensure assessments are completed on time. From November 2025, new entrants will be assessed under the IAT, meaning clearer service allocation. Current recipients will be transitioned gradually, with protections in place.

From 1 July 2026, the pricing reforms take effect, bringing more transparency to aged care costs. By 1 July 2027, the CHSP will also fold into Support at Home, completing the transition to a unified aged care system.

Ultimately, Support at Home represents a reset of Australia’s commitment to older citizens. By making services easier to access, tailoring them to individual needs, and ensuring greater fairness in contributions, the reforms aim to create a more sustainable, compassionate, and effective aged care system well into the future.