Update 11 June 2025
The Australian Government has decided to push back the start of the new Aged Care Act and the Support at Home program from 1 July 2025 to 1 November 2025. You may have already received a letter from the government about this. The deferral is to give aged care providers more time to get ready for the changes, and importantly, so that you have more time to understand the changes too.
Mercy Health is working closely with the Government to ensure the transition to Support at Home is a smooth one. In the meantime, I want to reassure you that your care and services will continue as normal. We’ll keep communicating with you as we get closer to 1 November. If you’d like to know more, please visit the Australian Government website.
Introduction
The Australian Government has introduced the Aged Care Bill 2024 to strengthen and improve Australia’s aged care system. This Bill will come into effect as the new Aged Care Act 2024 from 1 November 2025 (previously 1 July 2025).
This change coincides with the announced changes to in-home aged care. The new Support at Home Program will replace the Home Care Packages (HCP) program and the Short-Term Restorative Care Programme (STRC) from 1 November 2025 (previously 1 July 2025).
These changes may affect both current and future clients of Mercy Health Home Care, including updates to fees, charges and services.
This page provides key information about how the Support at Home (SAH) changes and the Aged Care Act 2024 may impact you. As the Australian Government releases more details, Mercy Health will keep this page updated.
For the latest official updates, visit the Australian Government’s website.
For existing Mercy Health Home Care clients
What are the key changes for Home Care Package (HCP) program clients transitioning to Support at Home from 1 November 2025 (previously 1 July 2025). Key changes from 1 November 2025 (previously 1 July 2025) will include
- Moving to a quarterly budget: This means the annual Home Care Package amount will be divided into 4 equal quarterly amounts that will cover 3 months of the year. Recipients who have not spent their budget within the quarter will be able to accrue a maximum of $1000 or 10% of their quarterly budget (whichever is higher) from one quarter to the next.
- A defined services list: Under Support at Home, all services will be specified on a service list with clear inclusions and exclusions. A final version of this services list should become available from the Australian Government in early 2025.
- No separate administration charges: Package management costs will be incorporated into the fees for services , not charged as separate fees.
- Care management funding set at 10% of all quarterly budgets: This funding will be set aside for providers to use to deliver care management support across all participants.
- Separately funded Assistive Technology and Home Modifications (AT-HM) Scheme: People will be approved at assessment for a separate funding amount of assistive technology and/ or home modification.
Will current Home Care Package program recipients need to be reassessed for Support at Home? How will their new funding level be decided?
Current Home Care Package clients will not need to be reassessed for Support at Home. Under SAH, Current HCP clients will continue to receive an equivalent level of funding as their previous Home Care Package. The previous annual package amount is divided into four to create the recipients equivalent SAH quarterly budget.
For new home care clients, Support at Home will include 8 Support at Home funding classifications and 3 short-term care pathways: Restorative Care Pathways, End of Life Care Pathway and Assistive Technology Home Modifications (AT-HM)
What are the proposed budgets for the 8 ongoing classifications under the new Support at Home?
The information presented here are the estimates provided by The Australian Government in December 2024. These figures are not final, it is expected this information will be released in March 2025.
| Classification | Quarterly Budget | Annual Amount |
| 1 | ~ $2,750 | ~ $11,000 |
| 2 | ~ $4,000 | ~ $16,000 |
| 3 | ~ $5,500 | ~ $22,000 |
| 4 | ~ $7,500 | ~ $30,000 |
| 5 | ~ $10,000 | ~ $40,000 |
| 6 | ~ $12,000 | ~ $48,000 |
| 7 | ~ $14,500 | ~ $58,000 |
| 8 | ~ $19,500 | ~ $78,000 |
| Restorative Care Pathway | ~ $6,000 (12 weeks)
May be increased to ~ $12,000 when eligible |
|
| End-of-Life Pathway | ~$25,000 (12 weeks) | |
What is the no worse off principle?
The no worse off principle will apply to the contribution arrangements for people who on 12 September 2024, were either receiving a package, on the National Priority System, or assessed as eligible for a package. These participants will be no worse off because of the reforms; they make the same contributions of lower, than they would have done under the Home Care Package (HCP) Program arrangements.
I have unspent funds in my Home Care Package, what will happen to those funds?
Clients with unspent funds balances will retain those funds under Support at Home. They may be used to access additional services if a quarterly budget is fully allocated, or for assistive technology and home modification if approved.
I access Home Care via Commonwealth Home Support (CHSP) Programme, how will this impact me on 1 November 2025 (previously 1 July 2025)?
The Australian Government has advised that CHSP will transition to Support at Home no earlier than 1 July 2027. Your funding and services will remain unaffected on 1 November 2025 (previously 1 July 2025).
Communication to Mercy Health Home Care Clients
The Australian Government has begun communicating with current Home Care Package Clients about the 1 November 2025 (previously 1 July 2025) transition to the Support at Home.
All Mercy Health home care clients receiving home care package funding will also receive a communication from Mercy Health in the week of the 26th May 2025.
Below are the communications that are being sent to our clients.
Home Care Package clients transition to Support at Home.
For Prospective Home Care Clients
The Australian Government is continuing to release information to providers to assist in developing pricing for 1 November 2025 (previously 1 July 2025). Mercy Health will continue to communicate with prospective clients as we are able to, relating to fees and charges from 1 November 2025 (previously 1 July 2025).