Participants on Home Care Packages at 31 October 2025 continue under the prior HCP fee framework — basic daily fee plus income-tested care fee — rather than the new Support at Home contribution structure. For middle-means and self-funded retirees, the cost difference can run to thousands of dollars per year. Grandfathering may end if care ceases, the package level changes, or a defined sunset date is reached.
When the Support at Home program replaced Home Care Packages from 1 November 2025, the reforms included specific transitional provisions for participants who were already receiving an HCP at the cut-off date. These provisions — sometimes called grandfathering or "grandparenting" — recognise that existing recipients had built care arrangements, established provider relationships, and based personal financial planning on the HCP framework. Subjecting them immediately to the new Support at Home rules would have produced disruption and, for many participants, materially higher contributions. Under grandfathering, participants on HCP at 31 October 2025 continue under broadly the prior HCP fee rules rather than the new Support at Home contribution framework. For middle-means and self-funded recipients, the protection is genuine and material — the cost difference can run to thousands of dollars per year.
The grandfathering provision operates alongside the new Support at Home framework for new participants — effectively two parallel fee systems for different cohorts of in-home aged care recipients. Existing recipients (grandfathered) continue under HCP rules; new participants from 1 November 2025 fall under Support at Home. The dual system is intended to operate for a defined period.
To understand the practical effect, it helps to revisit how HCP fees were calculated. Under the legacy framework, participant contributions had three main components.
Basic daily fee. A standard fee paid by all HCP recipients regardless of means, calculated as a percentage of the single Age Pension rate — typically around 85% of the single rate, though specific percentages vary. The basic daily fee was the foundational contribution required of all participants.
Income-tested care fee. A means-tested additional contribution for participants with income above defined thresholds. The fee scaled with income, with annual and lifetime caps preventing unbounded cumulative cost. For full Age Pension recipients with limited other income, the income-tested care fee was minimal or zero. For self-funded retirees with substantial income, the fee could be material.
Other charges. Some specific services — equipment, certain allied health — had additional charges or co-payments outside the standard fee structure.
For grandfathered HCP recipients, these legacy fee components continue to apply rather than the new Support at Home means-tested contribution structure.
The new Support at Home contribution structure is materially different. Support at Home distinguishes between three categories of care — clinical care (generally fully government-funded with no participant contribution), ongoing services (means-tested contributions), and equipment/short-term services (specific contribution rules). The means-tested contribution for ongoing services applies to a different scope of services than the HCP income-tested care fee, and the rates are calibrated differently. For middle-means participants, the Support at Home contribution structure typically produces higher contributions than the HCP framework would have. The reform's policy intent is to shift more cost to those with capacity to pay; grandfathering protects existing recipients from this shift.
For grandfathered recipients, the practical fee picture continues largely unchanged from the pre-1 November 2025 position. Several specific considerations apply. Annual income-test reassessment continues — the income-tested care fee is reassessed annually based on current income; changes in income flow through to fees. Provider invoicing continues based on the HCP fee structure — the participant pays fees to the provider; the government component is paid directly to the provider as subsidy. Annual indexation of fee components continues based on relevant indices. Annual caps and lifetime caps continue to apply under the legacy HCP framework, providing protection against unbounded cumulative cost.
For most grandfathered recipients, the financial picture from 1 November 2025 onward continues much as it did before — the same fees, the same provider, the same care arrangements. The first practical step for any family with a relative on HCP at the cut-off date is to confirm grandfathering status with the provider and the Department of Health and Aged Care. Grandfathering should apply automatically to participants in this position, but explicit confirmation avoids the risk of assumption.
A specific consideration for grandfathered recipients is the conditions that may end grandfathering. Several scenarios could produce loss of grandfathered status. Cessation of the care arrangement — if the participant ceases their HCP, grandfathering ends; future re-entry to in-home aged care would be under Support at Home. Change in care needs requiring a different package level — depending on specific provisions, a change may transition the participant to the new framework. Defined sunset date — some grandfathering provisions have a defined end date after which participants transition. Voluntary opt-in to Support at Home, where available, allows participants to choose the new system if they prefer it.
For grandfathered recipients considering any change to their care arrangement — pause for hospital admission, change of provider, change of care intensity — the implications for grandfathering status should be understood before action. Inadvertent loss of grandfathering can produce material cost increase, and the implications may be significant for middle-means participants in particular.
For specific scenarios, the value of grandfathering varies by means position. A full Age Pension recipient on HCP Level 2 had a relatively modest HCP fee (basic daily fee plus minimal income-tested care fee). Under Support at Home, the means-tested ongoing services contribution would be similarly modest. The grandfathering benefit is small. A part Age Pension recipient on HCP Level 3 had a moderate HCP fee. Under Support at Home, the means-tested contribution would typically be higher. Grandfathering preserves the lower fee — typically saving a meaningful amount per year. A self-funded retiree on HCP Level 4 had a substantial HCP fee, capped at annual and lifetime limits. Under Support at Home, the means-tested contribution would likely be higher still. Grandfathering provides the most material protection for this cohort, often thousands of dollars per year.
Several broader planning considerations apply for grandfathered recipients. Annual budget planning — the grandfathered fee continues, indexed annually; budget for ongoing cost as part of broader retirement income. Income management to control the income-tested component — strategies that reduce assessable income may reduce the fee, though must be coordinated with broader implications. Coordination with future residential aged care — when the participant eventually transitions to residential care, the lifetime cap on aged care contributions includes amounts paid under HCP/Support at Home; the transition is a planning point. Estate planning — aged care fees consume cash flow; estate planning should account for the ongoing draw on assets.
A few common pitfalls. Assuming new Support at Home fees apply to grandfathered recipients — they don't; grandfathering preserves HCP fees. Not confirming grandfathering status — should apply automatically for recipients on HCP at the cut-off, but explicit confirmation avoids assumption. Triggering loss of grandfathering inadvertently — pausing or ceasing care arrangements may end grandfathering; understanding the conditions matters. Not planning for the eventual transition — if grandfathering has a defined end or is condition-based, planning supports better outcomes. Income management without coordination — reducing income to reduce fees may have other implications for Age Pension entitlement or cash flow.
For grandfathered HCP recipients and their families, the practical takeaway is that the existing fee framework continues — but understanding why, what could change it, and how to protect the protection matters substantially over the medium term.
Key takeaways
- Participants receiving a Home Care Package at 31 October 2025 are grandfathered — they continue under the prior HCP fee framework (basic daily fee plus income-tested care fee with annual and lifetime caps) rather than the new Support at Home contribution structure. For middle-means and self-funded retirees, the cost protection is material and can run to thousands of dollars per year.
- The new Support at Home means-tested contribution for ongoing services is typically higher than the equivalent HCP charges for middle-means participants (part Age Pension recipients) and self-funded retirees. Full Age Pension recipients with minimal other income face similarly modest fees under both frameworks; the grandfathering benefit is most material further up the means spectrum.
- Several conditions can end grandfathering: ceasing the care arrangement (future re-entry falls under Support at Home rules), a change in care needs that triggers a transition under specific legislative provisions, or a defined sunset date. Before changing provider, pausing for a hospital admission, or altering care intensity, the grandfathering implications should be assessed — inadvertent loss can produce a material and permanent cost increase.
- Even under grandfathering, the income-tested care fee is reassessed annually based on current income — changes in assessable income flow through to the fee. Income management strategies that reduce assessable income may reduce the fee, but must be coordinated with Age Pension entitlement and broader cash flow. When the participant eventually transitions to residential aged care, the lifetime contribution cap includes amounts paid under HCP — a planning point to address in advance.
Frequently asked questions
Am I grandfathered if I was on a Home Care Package before 1 November 2025?
If you were receiving a Home Care Package at 31 October 2025, you should be automatically grandfathered under the prior HCP fee rules. The first practical step is to confirm your grandfathering status with your provider and the Department of Health and Aged Care rather than assuming it applies. Grandfathering means you continue under HCP contribution rules — basic daily fee plus income-tested care fee with caps — rather than the new Support at Home means-tested contribution structure.
How much more do Support at Home participants pay compared with grandfathered HCP recipients?
The difference depends on means. Full Age Pension recipients with limited other income face minimal fees under both frameworks, so the grandfathering benefit is small. Part Age Pension recipients (middle-means) and self-funded retirees typically face materially higher contributions under Support at Home's means-tested structure than they would have paid under HCP. For self-funded retirees on HCP Level 4, the difference can run to thousands of dollars per year. The HCP income-tested care fee was subject to annual and lifetime caps; Support at Home's structure applies caps differently.
What can end my HCP grandfathering?
Grandfathering can end if: the care arrangement ceases (future re-entry to in-home care then falls under Support at Home rules); care needs change and specific legislative provisions transition the participant to the new framework; a defined sunset date in the grandfathering legislation expires; or the participant voluntarily opts in to Support at Home. Any change to the care arrangement — provider change, pause for a hospital admission, change of care intensity — should be assessed for grandfathering implications before proceeding, since inadvertent loss may be permanent.
Does the income-tested care fee under grandfathering still change year to year?
Yes — even under grandfathering, the income-tested care fee is reassessed annually based on current income. If assessable income changes (for example, commencing an account-based pension, receiving a lump sum, or implementing income management strategies), the fee adjusts at the next annual reassessment. The basic daily fee is also indexed annually based on the Age Pension rate. The fee protection grandfathering provides is structural, not static — it preserves the HCP framework, but the fee within that framework still responds to income changes.