With the new Support at Home aged care scheme set to roll out on 1 July this year, the biggest question for older Australians entering the system is: How will the new fees work? With participants now expected to contribute toward their own care, it’s no surprise that the dollars and cents of it all are top of mind.
With the government yet to release a full price guide on the new services fee structure, uncertainty remains about the out-of-pocket expenses. However, what is clear is that participants can expect more service hours of support for the same level of funding.
The increase in service hours available is a result of three key changes to how pricing will work under the new Support At Home Scheme:
1. Care Management Fees Capped at 10%
Support At Home introduces a cap on care management fees, which are currently as high as 15% of the total care package funding. Under the new system, care management fees will be capped at no more than 10% of the package. This cost savings for clients ensures that more of the funding is used for actual care services.
2. No More Package Management Fees
Another big savings is the removal of package management fees. Under the current system, participants are charged up to 15% of their total funding for package management to cover administration and regulatory compliance. Under Support at Home, clients will no longer have to pay this charge, freeing up more funding for direct care services.
3. Shifting Administrative and Regulatory Costs to Hourly Rates
One of the most significant adjustments in the new system is shifting admin and compliance costs into the hourly cost of services. While this means hourly rates will increase, clients will still be better off as admin and compliance are charged only on services used rather than across the entire funding package. This user-pays system means you’ll only pay for invoice claims and admin on the services you use.
Together, with cutting package management fees and the reduction on care management fees, the net result is positive, with more hours of direct care available.
How will co-contribution fees work?
The other major change under Support At Home is the need for participants to contribute to the costs of services. However, the rules will be different depending on when you entered the home care system.
Grandfathered participants: If you had your funding approved before 12 September 2024, you’ll automatically be moved to the new system on 1 July 2025 at the same funding level that you are on now. As a ‘grandfathered participant’, you won’t be expected to pay fees if you don’t already, and you’ll be no worse off if you are paying fees.
Transitional participants: If your Home Care Package is approved between 12 Sept 2024 and 30 June 2025, you will experience the transition from the Home Care Package system to the new system, beginning 1 July 2025 – which requires everyone to contribute towards the cost of care:
- Clinical services will not require anyone to pay fees, including pensioners, part pensioners and self-funded retirees
- Independence supports, like transport and personal care, will require pensioners to pay 5% of the cost while others will pay 5-50% of the cost of services
- Daily Living supports, like cleaning and meal preparation, will require pensioners to pay 17.5% of the service fee while others will pay somewhere between 17.5-80% of the service fee
While the new model may seem like a lot to digest, it ultimately means more value for money and increased access to care for those receiving services under the Support at Home scheme. The new system works in a way that allows clients to get more direct care for their funding, to continue to help clients live independently at home.
For more information about services and fees for grandfathered and transitional participants, scroll to find our easy-to-follow factsheets below.
