HCP vs. Support at Home: What’s Different?

Australia’s aged care system is undergoing its most significant reforms in decades, driven by the new rights-based Aged Care Act and recommendations from the Royal Commission into Aged Care Quality and Safety. Starting 1 July 2025, the Support at Home program will replace Home Care Packages (HCP) and the Short-Term Restorative Care Programme (STRC), with the Commonwealth Home Support Programme (CHSP) transitioning by 1 July 2027.

This transition is designed to reduce administrative complexities, ensure affordable, needs-based support, and give care recipients more control over their services.

But what does this mean for you or your loved ones? This guide will break down the key differences, eligibility criteria, and funding changes and what you need to do to prepare for the transition.

What is HCP?

The Home Care Package (HCP) is a government-subsidized program designed to help older Australians live independently at home rather than move into residential care.

Designed for seniors aged 65+ (or 50+ for Aboriginal and Torres Strait Islander peoples), HCP provides tailored support to help you live independently. It offers:

• Four Care Levels: Ranging from basic to high-level care (Level 1-4)

• Services Covered: Personal care, nursing, domestic help, transport, and companionship.

Funding: Annual subsidies from 10,000(Level 1) to 55,000 (Level 4).

What is Support at Home?

Support at Home is a new aged care program that is replacing HCP, CHSP (Commonwealth Home Support Program), and STRC (Short-Term Restorative Care). It aims to streamline services, improve flexibility, and enhance service delivery by merging multiple programs into one.

Eligibility Criteria

To qualify for Support at Home, an individual must:

• Be 65 years or older (50+ for Aboriginal and Torres Strait Islander people).

• Require assistance to continue living at home.

Undergo an assessment using the new Integrated Assessment Tool (replacing ACAT).

Services Under Support at Home

Support at Home offers:

1. Clinical Care – The government will cover 100% of costs

2. Independence Supports – Recipients will contribute 5–50%

3. Everyday Living – Recipients will contribute 17.5–80%

What’s Staying the Same?

1. No Cost Increases for Existing HCP Recipients

• Current HCP users will automatically transition to Support at Home on 1 July 2025.

• Your funding will remain unchanged, and you’ll receive a Support at Home budget equivalent to your HCP levels.

• No re-assessment is required unless your needs change significantly.

  
  

2. Assessments Still Determine Funding

• Like HCP, eligibility for Support at Home hinges on assessments. Apply via My Aged Care or call 1800 200 422. For a step-by-step guide, read How to Access a Home Care Package

  
  

3. CHSP Remains Until 2027

• Seniors with lower-level needs will continue using CHSP until its transition in 2027. Compare programs with CHSP vs. HCP: Key Differences Explained

New Funding Model – Key Changes

The Support at Home program introduces a transformative funding structure designed to improve affordability, fairness, and flexibility. Here’s how it compares to the Home Care Packages (HCP) model:

Categorization of Services

Aspect	Home Care Packages (HCP)	Support at Home (2025+)
Service Groups	Broad, undifferentiated list	3 streamlined categories:
		1. Clinical Care (100% government-funded)
		2. Independence Supports (5–50% user contribution)
		3. Everyday Living (17.5–80% user contribution)
Transparency	Unclear cost-sharing	Clear co-payment tiers based on service type

Why This Matters:

• Predictable costs: Know exactly what you’ll pay for each service.

• Priority on health: Critical clinical care is fully covered.

Means-Testing & Co-Contributions

Aspect	HCP	Support at Home
Fee Structure	Income-tested care fees (up to $35.42/day)	Means-tested contributions (income + assets)
Impact on Self-Funded Retirees	Fixed fees regardless of assets	Higher contributions for Everyday Living and Independence Supports
Fairness	Less tailored to financial capacity	Ensures that those with greater means contribute more

Why This Matters:

• Equity: Lower-income seniors pay less for non-clinical services.

• Efficiency: Redirects subsidies to those most in need.

Lifetime Contribution Cap

Aspect	HCP	Support at Home
Financial Protections	No lifetime cap	$130,000 lifetime cap across all aged care services
Scope	Applies only to residential care	Covers in-home and residential care

Why This Matters:

• Peace of mind: No risk of unlimited out-of-pocket costs.

• Long-term planning: Safeguards savings for future needs.

Home Modifications

Aspect	HCP	Support at Home
Funding Access	Must save from annual budget	Immediate, separate funding via AT-HM scheme
Coverage	Up to $15,000 (saved over time)	Up to $15,000 upfront for modifications (e.g., ramps, grab rails)

Why This Matters:

• Faster safety upgrades: No waiting to accumulate funds.

• Aging in place: Stay safely at home longer.

End-of-Life Care Support

Aspect	HCP	Support at Home
Dedicated Pathway	No dedicated funding	End-of-Life Care Pathway with $25,000 budget over 16 weeks
Flexibility	Limited to general HCP funds	Funds cover nursing, pain management, and respite care

Why This Matters:

• Dignity: Receive compassionate care at home during the final months.

• Family support: Alleviates financial and emotional strain.

Key Takeaways from the New Funding Model

• Simpler costs: No income-tested fees, only means-based contributions.

• Fairer system: Wealthier Australians contribute more for non-clinical services.

• Immediate support: Faster access to home modifications and end-of-life care.

Key Differences: HCP vs. Support at Home

1. Levels of Care

Aspect	Home Care Packages	Support at Home (2025+)
Levels/Classifications	4 fixed levels (Level 1–4)	8 support levels + 2 short-term pathways (Restorative Care & End-of-Life)
Maximum Funding	$61,440/year (Level 4)	$78,000/year (Level 8)

2. Service Categories

HCP Services	Support at Home Categories
Broad list (e.g., nursing, meals, transport)	3 streamlined groups:
	1. Clinical Care (100% government-funded)
	2. Independence Supports (5–50% user contribution)
	3. Everyday Living (17.5–80% user contribution)

3. Clinical Care Funding

• HCP: Partial subsidies; users often pay out-of-pocket.

• Support at Home: 100% government-funded (nursing, allied health, therapies).

4. Pricing & Fees

Aspect	HCP	Support at Home
Provider Fees	Up to 35% for management	10% cap on care management fees
Additional Charges	Entry/exit fees, daily fees	No separate fees (price caps include admin costs)
Participant Costs	Income-tested fees (up to $18.77/day)	No income-tested fees; contributions based on means-tested assets & service category

5. Budget Allocations

• HCP: Annual lump sum.

• Support at Home: Quarterly budgets (4x per year). Unspent funds (up to $1,000 or 10% of the quarterly budget) can roll over.

6. Assistive Technology & Home Modifications

• HCP: Must save from annual budget.

• Support at Home: Immediate, separate funding via AT-HM scheme:

• Assistive Tech: 

• 500–15,000 (Low/Medium/High tiers).

• Home Mods:

• 500–15,000 (same tiers).

7. Short-Term & End-of-Life Care

Aspect	HCP	Support at Home
Restorative Care	8 weeks (STRC)	12 weeks + $6,000 budget
End-of-Life Care	No dedicated pathway	$25,000 budget over 16 weeks

8. Wait Times

Care Level	HCP Wait Times (2024)	Support at Home
Level 1–4	3–15 months	Interim 60% funding if wait exceeds expectations

How Support at Home Benefits You

1. Greater Flexibility & Transparency

• Choose services tailored to your needs without rigid tiers.

• Quarterly budgets allow adjustments for unplanned needs.

  
  

2. Financial Protections

• Lifetime contribution cap: $130,000 across all aged care services.

• No hidden fees: Government-regulated pricing prevents overcharging.

  
  

3. Enhanced Clinical Support

• Free nursing, physiotherapy, and allied health.

  
  

4. Faster Access to Equipment & Modifications

• Skip the wait to save funds—AT-HM provides immediate support.

What Happens to Existing HCP Users?

Existing Home Care Package (HCP) recipients will be automatically transitioned to the new Support at Home program when it launches in July 2025.

While current services will continue, some adjustments may be needed based on the new assessment process to ensure individuals receive the right level of care under the updated system.

Government support will be available to help providers and consumers navigate the transition, ensuring minimal disruption.

Those already receiving care should stay informed through My Aged Care to understand any changes to their funding, service structure, or eligibility criteria.

Preparing for the Transition

For Current HCP Users

• No action is needed: The Transition is automatic.

• Review your plan: Discuss updates with your provider to align with Support at Home categories. Use our Home Care Provider Checklist

  
  

For New Applicants

• Apply now: Secure an HCP before July 2025 to lock in current pricing.

• Use My Aged Care: Start assessments early to avoid delays.

  
  

Government Support & Resources

• Webinars, fact sheets, and consultation sessions.

• My Aged Care support for seniors navigating the change.

• Grants and assistance for service providers adjusting to new policies.

Key Questions Answered

Will my caregiver change?

No. Providers will prioritize continuity to maintain trust. Learn how to Choose the Right Home Care Provider

What if I need more care later?

Support at Home allows seamless upgrades to higher classifications. Read How to Apply for a Higher-Level Home Care Package

How are contributions calculated?

• Based on Aged Pension means testing: income + assets. Everyday Living services require higher contributions than Clinical Care.

Conclusion

The transition from Home Care Packages to Support at Home marks a major shift in aged care services. While both programs aim to help older Australians live independently, Support at Home simplifies the system, providing more flexibility and control over care services. Staying informed and prepared for the July 2025 transition will help ensure a smooth experience for all stakeholders. Visit My Companionship for personalized in-home care solutions.