The Australian Government has recently announced that price caps on services within the new Support at Home program will come into effect starting from 1 July 2026. This initiative marks a significant change in the way in-home aged care services will be regulated and priced.
What is changing?
Under the new Support at Home program, the government will be implementing price caps on services, with these caps being set by the government itself. This means that from 1 July 2026, in-home aged care providers will no longer have the freedom to set their own prices for Support at Home services, as they currently do under the Home Care Packages (HCP) Program.
To ensure a smooth transition, the government will be introducing additional consumer protections to monitor prices and ensure that pricing is fair during the first year of the program, starting from 1 July 2025. Consultations with older people, consumer advocates, and industry stakeholders will be conducted from January 2025 to develop these measures.
In addition to these new consumer protections, existing measures such as the banning of entry, exit, and other hidden fees, the implementation of the “no worse off” principle, a lifetime cap of $130,000 on co-contributions, and a robust financial safety net for individuals unable to afford co-contributions will continue to be enforced. These measures aim to provide older Australians with peace of mind and ensure that they receive quality aged care services without facing financial hardship.
What is changing?
The Support at Home program is set to launch on July 1, 2025. Additionally, a pooled care management approach, utilizing 10% of ongoing Support at Home classification funding, will also kick off on the same date. Notably, there will be no limitations on gardening and cleaning services under the Support at Home program.
Why are price caps being staged?
Why The decision to implement staged price caps stems from the need to allow the Independent Health and Aged Care Pricing Authority ample time to conduct additional consultations and gather expert advice. This strategic approach will ensure that the pricing arrangements are well-informed and carefully considered.
This change will accomplish the following objectives:
- Ensure uninterrupted care for Support at Home participants
- Offer guidance on fair pricing
- Maintain service consistency and market stability by establishing price caps for Support at Home that are grounded in reliable data
- Minimize the challenges faced by providers during the transition to the Support at Home program.
What implications do these changes have for providers?
In early 2025, the Department of Health and Aged Care will be conducting a survey of providers to gather information regarding their pricing under the Support at Home program.
Providers will be required to:
- Discuss any price adjustments with their participants starting from July 1, 2025, similar to the current HCP Program. It is expected that providers will initiate conversations with participants regarding service agreements for Support at Home, including pricing, beginning in April 2025.
- Provide participants with monthly financial statements detailing the units of each service type delivered and the corresponding prices.
Starting from July 1, 2025, providers will be mandated to:
- Share their Support at Home pricing information with the department, which will be accessible through the Find a Provider tool on the My Aged Care website.
- Publish their complete price schedule on their respective websites.
In March 2025, the government will release additional information for the aged care sector, as well as older individuals, families, and caregivers. The department will be closely monitoring the prices charged during the initial year of the Support at Home program. Program assurance activities will involve engaging with providers who are charging prices that may seem inappropriate to understand the underlying reasons.
Thin markets grants will also be made available to assist providers in rural and remote areas in maintaining their financial sustainability.
What impact will these changes have on older Australians?
It is crucial that any adjustments to pricing are made in a just manner. The government will be conducting assurance activities to ensure this.
According to the Australian Consumer Law, businesses are obligated to protect consumer rights. To further safeguard consumers, the government will be implementing additional measures to monitor prices and ensure fairness among service providers.
To guarantee fair pricing for Support at Home services, the government is considering implementing new requirements. Feedback on these potential changes will be sought from older individuals, their families, caregivers, and the aged care industry in 2025.
Older Australians receiving Support at Home services have the right to seek assistance from an independent aged care advocate when addressing concerns about their agreement and pricing. They also have the option to file a complaint with the Aged Care Quality and Safety Commission.