By Steve Hadfield, AgedCareActionPlan.au · Last updated: 26 April 2026
The government said the transition would be automatic and smooth. For most people, services did continue without a gap. But automatic does not mean nothing changed. Package management fees disappeared. Service prices were restructured. New service agreements were required. And for some people, the bills now look quite different — even if the total cost is supposed to be the same.
If your monthly statement is confusing, start with the statement decoder. This guide explains the bigger picture — what the transition changed, what stayed the same, and what to check if something feels off.
This is the most important distinction to understand before anything else.
Receiving a Home Care Package, or approved and waiting, on or before 12 September 2024
No-worse-off principle applies. Contributions are the same or lower. The HCP lifetime cap ($84,571.66 indexed as at 1 Nov 2025) applies to your Support at Home contributions.
Approved for a Home Care Package between 13 September 2024 and 31 October 2025
No-worse-off principle does NOT apply. You pay standard Support at Home contribution rates. The higher lifetime cap ($135,318.69 indexed as at 1 Nov 2025) applies.
First assessed on or after 1 November 2025
Standard Support at Home rates. The higher lifetime cap ($135,318.69 indexed as at 1 Nov 2025) applies. No HCP history.
Lifetime cap figures are indexed on 20 March and 20 September each year. Check myagedcare.gov.au for current amounts.
| Item | Before (HCP) | After (Support at Home) | Practical impact |
|---|---|---|---|
| Package management fee | Charged separately — typically 25–35% of budget | Abolished. All costs bundled into unit service prices. | Service hourly rates appear higher, but total cost structure changes — package management is no longer a separate deduction. |
| Care management fee | Combined with package management, often opaque | Capped at 10% of quarterly budget. Legally enforceable. | Maximum care management fee is now predictable and auditable. For Level 3 equivalent ($5,479.94/qtr), max is $547.99. |
| Service agreement | HCP service agreement | New Support at Home service agreement required | Provider must have issued you a new agreement. If you did not receive one or did not sign one, contact your provider. |
| Budget structure | Annual budget, managed by provider | Quarterly budget (July, October, January, April), managed by Services Australia | Budget resets quarterly. Up to $1,000 or 10% (whichever greater) rolls over each quarter. |
| Service categories | HCP services listed by type | Three categories: Clinical (0% contribution), Independence (moderate), Everyday Living (highest) | Clinical care is now fully government-funded. For grandfathered clients, contributions stay the same or reduce. |
| Funding classifications | 4 HCP levels (1–4) | 8 new Support at Home classifications + 4 transitioned HCP levels | Transitioned recipients are on one of the 4 HCP-equivalent levels. New assessments move to 8-level system. |
This is the most common source of confusion. Before the transition, your HCP bill showed:
After the transition, your Support at Home bill shows:
The hourly rates appear higher — but that is because they now include costs that were previously hidden in the package management fee. If the no-worse-off principle applies to you, the total you actually pay in contributions should be the same or lower. If you believe your care hours have reduced, request an itemised comparison from your provider: hours before 1 November 2025 versus hours after.
"I'd like to understand what changed for me specifically when my Home Care Package transitioned to Support at Home. Can you provide a written comparison of: the services I was receiving before 1 November 2025, the hours per fortnight, and what I was paying — versus what I'm receiving now, the current hours, and what I'm currently paying? I want to make sure the no-worse-off principle has been applied correctly to my arrangement."
Your unspent HCP funds were transferred to Support at Home and held in a separate budget. This is different from your regular quarterly budget. Key rules:
There is no limit on how much of your retained HCP funds you can carry from quarter to quarter. Unlike your regular quarterly budget (which has a $1,000 or 10% rollover cap), retained HCP funds are held indefinitely.
For day-to-day services — personal care, cleaning, nursing — you must use your quarterly Support at Home budget first. Only once that is spent can you draw on retained HCP funds for ongoing services.
For assistive technology and home modifications, your provider must use your retained HCP funds before drawing on your quarterly budget.
If you change providers, your retained HCP funds move with you. Your new provider can access them once they have a signed service agreement.
No. The Commonwealth Home Support Programme is not part of the transition. CHSP will continue as a separate program until at least 1 July 2027. If you receive both CHSP services and a Home Care Package, only the HCP portion transitioned to Support at Home. Your CHSP services continue unchanged.
Did you receive a new service agreement from your provider? If not, ask for one — it is required under the Aged Care Act 2024.
Does your new agreement state a clear hourly rate for each service type — with no separate travel or admin charges?
Is the care management fee stated as a percentage at or below 10% of your quarterly budget?
Has your provider sent you a comparison of your before and after charges, or can they provide one on request?
Do you know your retained HCP fund balance? Ask your provider for the current figure.
Has your status been confirmed in your My Aged Care Online Account?
If your monthly statement is not clear or something appears wrong, the statement decoder translates every line. If you believe the no-worse-off principle has not been applied correctly, the escalation ladder sets out who to contact and what to say.
Use the statement decoder to translate every line of your new monthly statement — and check whether your charges match what your service agreement says.
It was automatically converted to a Support at Home arrangement. Your funding level was matched to an equivalent transitioned classification. Services continued. Your provider was required to give you a new service agreement under the new program's pricing structure.
If you were receiving or approved for a Home Care Package on or before 12 September 2024, yes. Your contributions are the same or lower. If you were approved between 13 September 2024 and 31 October 2025 (hybrid clients), the no-worse-off principle does not apply — you pay standard rates.
They transferred with you and are held in a separate budget with no carryover limit. You must use your quarterly Support at Home budget first for ongoing services. For AT-HM items, retained HCP funds are used first. Funds transfer with you if you change providers.
Package management fees (previously 25–35%) have been abolished. All costs are now bundled into unit service prices. Hourly rates appear higher but should include what was previously charged separately. If your actual care hours have reduced, request an itemised breakdown from your provider.
Quarterly budget: released every quarter, up to $1,000 or 10% rollover. Retained HCP funds: separate budget, no rollover cap, carried from your old package. Use quarterly budget first for ongoing services. Use retained HCP funds first for AT-HM items.
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This guide is for information only — not legal, medical, or financial advice. Verified against the Aged Care Act 2024 and Aged Care Rules 2025. Check myagedcare.gov.au for current rates and rules.