The implementation of capped pricing for the Support at Home program will no longer commence in July 2026. However, the Quality and Safety Commission has been granted new authority to mandate refunds for services that have been overcharged.
The government has declared that the price caps for the Support at Home initiative will be postponed until further evidence is collected and there is increased confidence in market stability.
Initially scheduled to take effect on 1 July 2026, these price caps were intended to establish maximum prices for various service types, which include:
- nursing care
- personal care
- domestic assistance
- meal support.
The decision to delay the price capping was made in response to input from the community, service providers, and advocates, as part of a broader initiative announced on Tuesday aimed at enhancing consumer protections for recipients of the Support at Home program.
This announcement follows a previous decision by the government to reclassify personal care services, such as showering, dressing, and continence assistance, as clinical care. This change came after months of criticism regarding the requirement for co-payments, including an open letter signed by numerous federal politicians.
The new measures empower the Aged Care Quality and Safety Commission to:
- mandate refunds for services where overcharging by providers has been identified
- take regulatory action against providers failing to issue monthly statements
- publicly disclose findings from investigations and enforcement actions.
Additionally, a new National Summary of Support at Home Prices will be released quarterly, providing information on the median and range of prices charged by providers, allowing consumers to compare their provider’s pricing.
The Department of Health, Disability and Ageing, along with the commission, will closely monitor the pricing of personal care as it transitions into clinical care.
In the meantime, the government is urging providers to restrict price increases to a maximum of two times per year, ensuring that care recipients can maintain greater certainty regarding their budgets.
The government is set to form a working group that will include representatives from the Older Persons Advocacy Network, Council on the Ageing Australia, the commission, and the provider peak body, Ageing Australia.
The focus of this working group will be on three essential priorities:
- Establishing a clearer and more robust definition of reasonable pricing, which will offer better guidance to both providers and consumers regarding their rights and responsibilities.
- Engaging in further consultations concerning the multi-provider model.
- Creating additional guidance and support for older individuals who choose to self-manage their packages.
OPAN will receive supplementary funding to enhance its financial advocacy, while COTA Australia will be allocated extra resources to expand its educational and informational outreach on consumer protections.
Minister for Aged Care and Seniors Sam Rae emphasized that the government has listened to the concerns of older Australians and their families about the urgent need for stronger protections against unfair market pricing in relation to Support at Home.
“We will persist in our methodical efforts, focusing on the needs of older people, to ensure that Support at Home delivers on its commitment: quality care at equitable prices, close to home,” he stated.
The sector has welcomed the postponement of price caps
The SaH sector has reacted positively to the announcement, indicating that the delay lessens the likelihood of abrupt last-minute modifications to service agreements and ensures the continuity of care for older Australians.
Tom Symondson, CEO of Ageing Australia, stated that any price caps established at this juncture would not accurately reflect the true costs of delivering quality services, as no independent costing study has been conducted since the Support at Home program began six months ago.
“A delay provides us with the necessary time to gain a better understanding of the actual costs involved in providing services to older individuals, regardless of their needs and locations. This understanding is essential to prevent the harm that caps have inflicted in other sectors, where they have drastically limited access to services, particularly for those with complex needs and individuals in regional areas,” Mr. Symondson noted.
“Most importantly, this decision prevents widespread confusion for both providers and older individuals.”
Catholic Health Australia has also expressed its approval of the decision to defer price caps and the increased powers of the ACQSC.
As a representative body for not-for-profit providers, CHA strongly supports the government’s initiative to protect consumers from excessive charges, stated Alex Lynch, director of aged care.
“We also commend the wise decision to postpone price caps, which would have limited choices, threatened provider viability, and prolonged already strained waitlists, especially in regional areas and for higher-complexity services,” Mr. Lynch remarked.
CHA had previously called for a deferral of price caps during a Senate hearing regarding the Support at Home Program in February, arguing that the caps had not been finalized or tested in practice. If deferred, CHA suggested that the Independent Health and Aged Care Pricing Authority could evaluate pricing while the new system is in operation without caps in place.
Mr. Lynch expressed satisfaction that Mr. Rae and the government listened to the sector and made the “prudent decision to delay these caps, which would have been counterproductive.”
According to Mr. Lynch, “The department has confirmed that the overwhelming majority of providers are not levying exorbitant or unfair charges in aged care, making this a solution to a problem that does not exist.”
Long-term pricing action remains essential
COTA Australia expressed appreciation for the recent developments but cautioned that pricing pressures persist, emphasizing the necessity for robust pricing protections to effectively lower costs and shield older individuals from excessive or unreasonable pricing in the long run.
COTA Australia’s chief executive, Patricia Sparrow, described the new consumer protections as a welcome and vital initial step that addresses the concerns of older individuals while further efforts on long-term pricing are pursued.
“The key issue is not the mechanism itself, but whether older individuals are truly safeguarded against excessive and unreasonable pricing,” Ms. Sparrow stated.
“Older Australians have faced significant price hikes, unclear pricing, and inconsistent practices since the inception of Support at Home, and today’s initiatives represent progress in tackling these critical challenges.”
She noted that empowering the ACQSC to mandate refunds, publish quarterly pricing, and establish a more comprehensive definition of reasonable pricing are prudent actions that will yield positive outcomes.
Ms. Sparrow also praised the elimination of out-of-pocket expenses for showering, dressing, and continence, advocating for continued monitoring of pricing as these services transition to clinical care.
“This commitment will significantly benefit older individuals, and overseeing pricing during the transition is precisely the type of oversight required,” she remarked.
Ms. Sparrow acknowledged COTA Australia’s understanding of the decision to take additional time to ensure accurate pricing before implementing formal caps in a year, but stressed that older Australians require assurance that strong consumer protections, particularly regarding pricing, are established and will be enhanced.
“Ensuring accurate pricing is of utmost importance and must be executed correctly. A hastily implemented price cap risks failing to serve older individuals or the system that is meant to support them in the future,” she concluded.
The delay in implementing price caps continues to create uncertainty
Samantha Edmonds, OPAN’s director of policy, education, and systemic advocacy, stated that while they welcome the stronger measures for oversight and transparency, the decision to postpone price caps means that older adults will remain uncertain about the costs of essential services.
“Older adults are already facing a cost-of-living crisis, and having access to reasonable and affordable care is vital for their well-being,” she noted.
Nonetheless, she pointed out that enhancements are required to ensure these new measures provide effective protection, particularly regarding local pricing transparency.
“The release of national price summaries is a positive development, but older adults need the ability to compare prices in their local areas to make informed choices about their service providers,” Ms. Edmonds explained.
Additionally, Ms. Edmonds reiterated OPAN’s appeal for the appropriate indexing of Support at Home prices.
“If indexation does not align with cost pressures such as the consumer price index, there is a genuine risk that package values will not keep pace with rising service costs, potentially forcing older adults to forgo necessary care,” Ms. Edmonds warned.