The Department of Health and Aged Care released indicative prices for Support at Home on Monday, providing the first real guidance for home care providers to set their prices for reforms taking effect on 1 July 2025.
As expected, the indicative prices for Support at Home are higher than current median prices for Home Care Packages. A small sample of key home care services show a 25% increase, according to our back-of-envelope calculations (see main image).
Minister for Aged Care
Higher prices will impact demand
Minister for Aged Care and Sport, Anika Wells, said in a statement providers must take into consideration their clients' ability to pay for services with the adjusted prices.
"You should very carefully consider circumstances where Home Care Package program clients may receive fewer services under Support at Home as a result of your pricing decisions, as you will need to justify this change to them," she said.
Conversely, the Minister also said the fees Support at Home providers charge clients from 1 July 2025 can take into account "transitional costs" of adjusting to the reforms. The prices are intended to provide "guidance" and are not a "cap" for prices to be charged from 1 July 2025, she stated.
"Package management and travel must now be included in the unit price, not as a separate charge as it is now," she added.
Regulatory response to "excessive" prices
Under Support at Home, providers will continue to be required to publish their prices on My Aged Care. The Department will be "actively" monitoring these prices, the Minister said.
"If we find that a provider has set prices that seem excessive when compared to the market, we will ask you to present evidence to the department or to the Aged Care Quality and Safety Commission to demonstrate how you have arrived at the pricing in question, and how it is justified. If we determine that the prices cannot be justified, then enforcement action will be taken," she said.
Price caps were to be introduced with the Support at Home reforms from 1 July 2025. However, last December the Government bowed to pressure from the sector and allowed providers to continue to set their own prices until 1 July 2026, when caps will be introduced.
Earlier this month, Tom Symondson, the CEO of the aged care peak body Ageing Australia, told The Weekly SOURCE the implementation timeline for Support at Home "borders on impossible". Earlier this week, ahead of the Federal Budget, Tom called on the Government to increase the care management cap to 20%.
The next step in the reform process is for home care providers to adjust their prices and inform clients. Clients must agree to the price changes.
The indicative prices have been informed by a survey of home care providers in which one-third of Australian home care providers participated, according to the Department.
Find the Support at Home guidance here.
