Key Takeaways
- Support at Home (SAH) replaced Home Care Packages (HCP) for new participants from 1 November 2025.
- If you were already on a HCP before 12 September 2024, you're 'grandfathered' and protected by the No Worse Off principle.
- SAH has eight Classifications (1-8) with annual budgets from roughly $10,731 to $78,106, the old HCP had four Levels.
- Government now sets the prices for most services, and care management fees are capped at 10% of your quarterly budget.
- If you're unsure where you stand, call My Aged Care on 1800 200 422 or check myagedcare.gov.au.
Australia's home care landscape changed forever on 1 November 2025. The Support at Home (SAH) program officially replaced Home Care Packages (HCP) for every new participant, the biggest reform of consumer-directed aged care since HCP itself launched in 2013.
If you're an older Australian, a family carer, or a financial planner trying to make sense of what this all means, the headline is reassuring: nobody loses funding, the government picks up a much bigger share of clinical care, and provider behaviour is now far more tightly regulated. But the detail matters, and the rules differ depending on when you entered the system.
Here's the plain-English version.
Why Australia replaced Home Care Packages
The old HCP scheme was built on four package "Levels" (1 through 4), each with a fixed annual budget. It worked, but three problems built up over the decade it ran.
First, providers could charge whatever they wanted for administration and care management, and many charged 25% to 35% of a participant's package, which left less for actual care. Second, the package levels didn't always match the way needs are assessed, so people regularly got stuck on the wrong level for too long. Third, the cost-sharing was confusing: an income-tested care fee, a basic daily fee, and exit fees on top, all interacting differently with the age pension.
The Aged Care Royal Commission asked for a simpler, more transparent system. SAH is the answer the government landed on after three years of design and consultation.
The big-picture differences
Here's how the two schemes compare at a glance.
| Feature | Home Care Packages (HCP) | Support at Home (SAH) |
|---|---|---|
| Status | Closed to new participants | Active from 1 Nov 2025 |
| Funding tiers | 4 Levels (L1-L4) | 8 Classifications (1-8) |
| Annual budget range | ~$10,987 - ~$63,758 | ~$10,731 - ~$78,106 |
| Service categories | One bucket | Three (Clinical / Independence / Everyday Living) |
| Government share | Variable | 100% for clinical, sliding scale otherwise |
| Care management cap | None | 10% of quarterly budget |
| Lifetime cap (you contribute) | n/a | $130,000 (new participants) |
| Pricing | Provider sets | Government sets price guidance for most services |
The single biggest change is that clinical services, nursing, physiotherapy, occupational therapy, podiatry, dietetics, are now 100% government-funded. Under HCP, those services were paid for out of your package budget. Under SAH, they don't touch your package at all. That's a structural win for anyone with chronic disease, complex wounds, or rehabilitation needs.
The three classifications: who's who
SAH didn't simply rename HCP levels. It also redefined who qualifies for what. There are now three population groups:
1. Grandfathered (joined HCP on or before 12 September 2024)
You keep all the No Worse Off protections. Your contribution arrangements stay the same, you still pay the basic daily fee and any income-tested care fee you were paying, and your lifetime contribution is capped at $82,018 (indexed). Your old HCP Level maps automatically across to a new SAH Classification.
2. Hybrid (joined between 13 September 2024 and 31 October 2025)
This is the cohort that started HCP just before the reforms. You get a partial transition: SAH service categories apply, but the lifetime cap doesn't apply to you. Your fees are still based on the old means-test arrangement.
3. New Participant (assessed from 1 November 2025 onwards)
You're on the full new system from day one. Lifetime contribution cap of $130,000. Service-category contribution rates apply, 0% for clinical, sliding scale for independence and everyday living. You'll choose between Self-Managed (SM) and Fully-Coordinated (FC) packages.
How HCP Levels map to SAH Classifications
If you were an HCP participant before SAH started, your level transitioned automatically. The mapping is broadly:
- HCP Level 1 to roughly SAH Classification 2-3
- HCP Level 2 to roughly SAH Classification 4-5
- HCP Level 3 to roughly SAH Classification 6-7
- HCP Level 4 to roughly SAH Classification 7-8
The exact classification depends on your assessment outcome, some participants moved up a tier when re-assessed because the new system has finer granularity at higher need levels. If your circumstances have changed substantially, you can request a reassessment through My Aged Care.
What it means for your wallet
For most grandfathered participants, the financial picture barely changes. Your basic daily fee and income-tested care fee continue under their existing rules. The big shift is that nursing and allied health no longer eat into your budget, so the same package now buys more support hours.
For new participants, here's the practical effect:
- Clinical services (nursing, physio, OT, podiatry, dietitian, speech pathology): 0% client contribution. The government pays the full cost.
- Independence services (personal care, transport, social support, respite): 0-50% client contribution depending on means assessment.
- Everyday Living services (cleaning, gardening, meals, home maintenance): 0-80% client contribution.
The intuition: government covers the clinical care that keeps you well, but expects more contribution towards the lifestyle services you'd otherwise pay for from your own budget.
What you actually need to do
If you were on a Home Care Package before SAH started, the answer is: probably nothing. Your provider has migrated your funding across automatically. You should have received a written notification from My Aged Care confirming your new SAH Classification.
If you're new to home care, the steps are:
- Register with My Aged Care on 1800 200 422 or via myagedcare.gov.au.
- Have an in-home assessment with the Single Assessment System workforce.
- Receive your Classification, this letter tells you which budget tier (1-8) you're approved for.
- Choose a provider, compare hourly rates and care management fees on Home Care Prices.
- Decide between Self-Managed or Fully-Coordinated, different control and pricing models.
If you're somewhere in between, say, you applied for HCP in mid-2025 and your assessment hadn't completed by 1 November, you'll fall into the Hybrid cohort. Your provider should have walked you through the implications, but if not, ring My Aged Care for confirmation in writing.
Common mistakes we see
A few things to watch out for in the early days of SAH:
- Don't accept verbal explanations of your fee structure. Get it in writing.
- Don't assume the maximum cap will affect you. Most participants pay well below the lifetime cap.
- Don't switch providers in haste. The fee transparency is real, but so is continuity-of-care value.
- Do read the new statement of rights. Your provider must give you a copy when you sign your service agreement.
Where to go for more
The official source for SAH information is myagedcare.gov.au. For independent comparison of provider hourly rates and fees in your area, use the Home Care Prices comparison tool. If you're unsure whether your individual situation has been handled correctly, call My Aged Care on 1800 200 422, the call is free and the operators have been trained on the new rules.
The SAH transition is the largest piece of aged-care regulation Australia has shipped in a decade. It's not perfect, but for most older Australians and their families it means more transparency, more clinical support at no extra cost, and clearer rules. Understanding the basics is the first step in making it work for you.