Grandfathering HCP clients to the Support at Home program

When the Support at Home program commences there will be a large number of people on Home Care Packages who will transition across to the new program. These people will be ‘grandfathered’ into the new program, but what does that really mean?

The Department of Health has released a number of documents where the subject of grandfathered HCP participants has been mentioned, although the information is not all in one place, so we’ve compiled this post to help providers and aged care participants understand what grandfathering of HCP clients means to them. Of course, there may be some minor changes as more information is released, but hopefully, this information will clarify people's questions about what happens to those with current Home Care Packages or in the queue.

What does grandfathering mean

‘Grandfathering a client’ means allowing an existing client to continue receiving services or benefits under the old terms and conditions, even when new rules or pricing structures are implemented for new clients. This process protects them from changes that would otherwise apply to new clients; it's like giving them a ‘legacy’ status based on their initial agreement.

Under the aged care reforms, a Home Care Package recipient who, on 12 September 2024, was either:

• receiving a package,
• on the National Priority System, or
• assessed as eligible for a package

will be grandfathered over to the new Support at Home program and retain any funding level or benefits that were in place. This means they will be no worse off under the new model.

Financial impact

Grandfathered clients will make the same contributions, or lower, than they would under current HCP program arrangements, even if they are reassessed into a higher Support at Home classification at a later date.

Full pensioners who were on a Home Care Package on 12 September 2024 will never have to make any contributions towards their funded services. Note, the exception for items that are considered ‘excluded items’ under the guidelines, e.g. the ingredients portion of a meal, which is the same as is currently in place.

Other part-pensioners and self-funded retirees who have been grandfathered into the new program will have a different contribution arrangement but will be no worse off than they are now. Grandfathering of transitioned HCP clients also includes maintaining their current lifetime contributions cap of $82,018.15.

New Service Agreement

Providers will need to complete a new service agreement with transitioned HCP clients, and it will need to align with the Support at Home program, including the service list.

Transitioned HCP clients, who have not been reassessed under Support at Home, can access any service on the Support at Home service list, provided it meets their needs. The organisation needs to ensure there is evidence that the service type supports an assessed need of the older person.

This means that providers and current HCP recipients will need to sit down together and compare the person’s current service plan with the new Support at Home service list. If provided services fall outside this list, for example, a person is receiving support for pet care, which is an excluded item, they will need to investigate other options for the delivery of that service; perhaps a friend or family member can help, or the person can pay out of their own funds. This may be balanced out by identifying an eligible service type that the person needs and is currently paying for, e.g. taxi fares to get to the shops.

How will the funding work for someone transitioning from HCP to the Support at Home program?

Transitioned HCP clients who have not been reassessed under Support at Home will continue receiving an equivalent funding level as their previous Home Care Package. The previous annual package amount is divided into four to create the equivalent Support at Home quarterly budget.

Older people who, on 30 June 2025, were on the National Priority System or assessed as eligible for a Home Care Package will transition to Support at Home when funding becomes available. These participants will receive an equivalent level of funding to their approved HCP.

As those people who were grandfathered begin to require additional services and are reassessed, they will move onto one of the eight Support at Home funding levels according to their assessed needs. However, they will continue to retain their legacy status.

For example, on 1 July 2025, Susan was on a level 2 Home Care Package and was grandfathered into the Support at Home program. Susan continues to receive funding at the level 2 package level; however, the funding is now divided into four quarterly budget amounts. She can use the funds in this account to pay for her approved services and will receive a monthly statement detailing how these funds have been spent.

If a person is reassessed because their needs have increased beyond the capacity of their current funding level, they will receive a Notice of Decision, and their new support plan on My Aged Care will outline the approved Support at Home services they are eligible to receive.

What will transitioned HCP participants pay towards care?

These participants will make the same contributions, or lower, than they would have had under HCP program arrangements, even if they are re-assessed into a higher Support at Home classification at a later date.

Grandfathered participant contribution arrangements include:

• Previous HCP clients who were not required by Services Australia to pay an income-tested care fee will continue to make no contributions for the remainder of their time in Support at Home. This group includes all grandfathered full-rate pensioners.
• Previous HCP clients who, based on the outcome of their income test, were required to pay an income-tested care fee, will transition to Support at Home with discounted contribution arrangements.

Services Australia will notify these clients and their providers of the grandfathered contribution amount payable.

Susan is a full pensioner and previously received a HCP Level 2 package. This meant she paid no income-tested care fees for her care under the HCP Program. Since transitioning to Support at Home on 1 July 2025, she has continued to pay no participant contributions (or income-tested care fees) and receives the same level of funding, which is managed through her care plan and quarterly budget allocation. Susan will never pay participant contributions under Support at Home, even if she is reassessed to a higher Support at Home classification.

Unspent funds

Home care package clients with unspent funds in their package will retain these funds when transferring to the Support at Home Program. The funds can be used to pay for services and support where the person exhausts their quarterly budget due to the need for additional services or supports that quarter, or the person needs to purchase aids and equipment as identified through an assessment.

Any purchases must be aligned with the person’s assessed needs, which will be described in their support plan on My Aged Care. Similar to their normal budget funding, a client cannot use their unspent HCP funds to pay for services they have not been approved to receive, e.g. if not approved for delivered meals, they cannot use the funds to pay for meals until they have been reassessed and approved for this service type.

The following examples highlight how unspent HCP funds can be used:

Additional Services

When Susan transitioned from the home care package program to Support at Home, she had $5600 in unspent funds accumulated in her budget, which was brought across to the new program.

Susan receives her quarterly Support at Home budget and occasionally has some funds left at the end of the quarter; she can roll this surplus over to the next month as it rarely equates to more than $1000 of her quarterly funds. One quarter however, Susan found she needed additional transport to get to a series of appointments, a service that had already been approved. Susan didn’t have a surplus in her budget that quarter however, she can access the additional funds from her Home Care Package surplus to cover the shortfall.

Aids and Equipment

Susan can also access her surplus Home Care Package funds to pay for any aids and equipment that she has been assessed as needing, such as a shower chair or walker, or for essential assessed home modifications such as shower rails.

Does the person need to be formally reassessed through My Aged Care to access aids and equipment?

HCP unspent funds can still be used to purchase equipment, products and home modifications through the Assistive technology and/or home modifications (AT-HM) funding stream list even where the transitioned HCP recipient has not had a re-assessment and does not have an approved AT and/or HM funding tier. However, the provider must document and justify the need and reasoning for the purchase and retain all evidence to support the claim, and the purchase must align with the AT-HM list.

Note: All purchases of AT-HM must also align with the person's needs, be agreed upon with them, be documented in their care plan, and meet any prescription requirements where applicable.

Order of fund access

When funds in the person’s quarterly budget (restorative care budget or end-of-life budget where applicable) are exhausted, providers can continue to support a person and provide essential services by claiming from the person's HCP Commonwealth unspent funds, where available.

The prioritisation of claiming is:

1. Participant quarterly budget or restorative care budget or end-of-life budget
2. HCP Commonwealth unspent funds.

For AT-HM, HCP Commonwealth unspent funds must be used, if available, before AT- HM funding tiers are accessed. For those with unspent HCP funds requiring AT-HM, the prioritisation of claiming is:

1. HCP Commonwealth unspent funds
2. AT and/or HM budget

Susan has experienced a couple of dizzy spells lately, which she has discussed with her GP. She is concerned that she might fall in the shower but doesn’t want someone around when showering. Her GP recommends that she get a shower chair to sit on while showering to reduce the risk, and she writes a letter to her provider. Susan forwards this to her care partner who discusses the need with her and amends her care plan to reflect her identified need. She also arranges for an in-home assessor from a local independent living service to visit Susan and ensure the correct item is provided. Susan’s care partner discusses the recommendation and arranges for the purchase and delivery of the shower chair. Her care partner also lets Susan know that the cost of the chair will be deducted from her unspent HCP funds.

Is there a time limit for using unspent HCP funds?

HCP unspent funds can be used for the duration of time a participant is receiving Support at Home services until the funds are exhausted or the person exits home care.

Services Australia will continue to manage HCP Commonwealth unspent funds for transitioned HCP recipients.

I hope this, quite long post has cleared up some questions you have around what will happen to grandfathered HCP clients and their unspent funds. If you have any further questions, or would like some guidance or training for your organisation in preparation for the reforms and commencement of the Support at Home program in July this year don't hesitate to reach out to us via our contact page.