Starting July 1, big changes are coming to Aged Care in Australia—and for many older Australians, that means a bigger financial burden.
The Federal Government is rolling out the new Support at Home Program, which will replace the current home care package system. While these reforms aim to streamline services and deliver better care, many seniors are concerned about one key change: means-tested co-payments for essential in-home support services.
If you or a loved one rely on help at home—whether for showering, cleaning, meals, or medication management—these changes could have a serious impact on your budget.
The New Reality: Co-Payments for Home Care Packages
Under the current system, most full pensioners receiving in-home care pay little or nothing for services. But under the new Support at Home model, everyone—pensioners included—will be expected to contribute.
The level of payment depends on your income and the type of service:
| Service Type | Full Pensioner | Part Pensioner | Self-Funded Retiree |
| Clinical Care (e.g. nursing) | 0% | 0% | 0% |
| Independence Support (e.g. showering, dressing) | 5% | 5–50% | 50% |
| Everyday Living (e.g. cleaning, gardening) | 17.5% | 17.5–80% | 80% |
For someone receiving 16 hours of care per week, this could mean up to $200 per fortnight in new out-of-pocket costs. For seniors already living on a full pension of around $1,100 per fortnight, that’s a significant cut into their budget.
As one concerned daughter and carer said in a recent ABC interview:
“They’ve worked all their lives, paid taxes—and now they’re being asked to apply for hardship just to get a shower? It’s humiliating.”
[ ALSO READ: Home Care Funding: How Reverse Mortgage Helps you stay at home, longer ]
What The ‘Support At Home Program’ Could Mean for You
Even if you’re currently receiving home care, and covered under the government’s “no worse off” policy, there are no guarantees that things won’t change in the future. And for anyone new to the system, the added costs are a real concern.
Many aged care experts warn that even small co-payments could lead to:
- A reduction in essential services, like bathing or cleaning.
- Increased pressure on family carers to fill the gap.
- Seniors delaying support until it’s too late—resulting in hospitalisation or premature entry into residential care.
Planning Home Care Ahead = Peace of Mind
While the reforms are complex and still evolving, one thing is clear: the days of fully subsidised home care are over.
So how can seniors stay in control?
By getting informed, getting advice—and exploring ways to use their assets wisely. That includes your most powerful financial asset: your home.
Reverse Mortgage: One Way to Fund Your Independence
A Reverse Mortgage lets you unlock the equity in your home—without selling or moving—so you can fund the care and lifestyle you deserve.
Here’s how many seniors are using it:
- Pay for home care: Cover new co-payments for cleaning, showering, and daily support.
- Bridge waiting times: Fund private care while waiting for a government package.
- Upgrade the home: Make safety improvements like ramps or bathroom modifications.
- Relieve financial stress: Pay off debts or cover everyday expenses without touching your pension.
- Support your family: Help a spouse with care needs or give financial help to children if needed.
- Stay independent longer: Use your home’s value to maintain quality of life—on your terms.
[ ALSO READ: Reverse Mortgage vs. Super: Which is Best for paying Aged Care costs? ]
With no regular repayments required, a Reverse Mortgage can be a smart way to age in place, comfortably and confidently.
Want to learn more about Reverse Mortgage? Find out more about how to use a Reverse Mortgage for debt consolidation or download your FREE REVERSE MORTGAGE GUIDE.
Ready to Apply? You can now check your eligibility online or call Seniors First on 1300 745 745.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial advisor before you make any decision.