Support at Home: Grandfathering and Co-Contributions Explained With Right at Home

The Australian Government’s Support at Home program has been postponed and will officially begin on 1 November 2025, replacing the current Home Care Packages (HCP) and Short-Term Restorative Care (STRC) programs. Right at Home your quality home care provider, shares home care changes and details on grandfathering from the Home Care Packages program and co-contributions in the new Support at Home system.

One of the most common questions from older Australians and their families is:
“What will I need to pay for my care under the new system?”

The government has committed to ensuring that Home Care Package clients are not financially disadvantaged during the transition. This maintaining of existing conditions is known as grandfathering. Under Support at Home 'grandfathering' relates to co-contribution rates.

In this blog, we explain:

• What it means to be a grandfathered client

• How co-contributions will work under the new system

• The difference between contribution rates for existing clients and new entrants

• What happens to unspent funds, hardship arrangements, and contribution caps

What Does It Mean to Be a Grandfathered Client?

If you are:

• Receiving a Home Care Package on or before 12 September 2024, or

• On the National Priority System (NPS) with an approved but unallocated package by this date, you will be considered a grandfathered client under Support at Home.

This means:

• Your current contribution rates will remain the same, even if you are reassessed or reclassified at a later stage as your needs change.

• Your lifetime contribution cap of $82,018.15 will be maintained, as per the existing HCP rules.

• Any unspent Home Care Package funds will carry over into your Support at Home budget.

• If you have an existing hardship arrangement, it will continue until it expires.

These protections ensure that current clients (as of 12 September 2024) are not financially disadvantaged as a result of the program change.

What Are Co-Contributions?

Under Support at Home, co-contributions will replace the current Income Tested Care Fee (ITCF).

The new approach links your contribution rates to the type of service you receive, not to your funding classification level as under the old HCP system. This allows for more flexibility as your care needs change.

How Are Contribution Rates Calculated?

Contribution rates will be set per hour or per unit of service and determined by both:

• Your income and assets assessment

• The category of service you receive

There are three key service categories:

• Clinical services (such as nursing, care management, and allied health) — no co-contributions required

• Independence services (such as personal care, transport, assistive technology) — moderate co-contributions apply

• Everyday living services (such as domestic assistance, gardening, meals) — highest co-contributions apply

Everyday living services attract higher contributions because these tasks are considered general household services that the government does not typically fund for other Australians.

Contribution Rates for Grandfathered Clients

If you are a grandfathered client, your contribution rates will remain at their current levels. These rates are not affected by reassessment or reclassification at a later stage.

Lifetime contribution cap for grandfathered clients: $82,018.15

Source: Support at Home Handbook Feb 2025

Contribution Rates for New Entrants (including Non-grandfathered HCP clients entered after 12 September 2024)

If you entered the HCP program after 12 September 2024 you are not considered a grandfathered client and if you enter the Support at Home program after 1 July 2025, you will pay the new Support at Home co-contribution rates which will be determined by your income and assets assessment.

* Contribution rates within these ranges depend on the outcome of your income and assets assessment.
^ If you choose not to disclose your means, the maximum rate applies.

Lifetime cap for co-contributions is $130,000

Source: Support at Home Manual V2 May 2025

Why Are Contribution Rates Higher for Everyday Living Services?

The government has set higher co-contributions for everyday living services because these supports relate to general household tasks like cleaning and gardening. These types of services are not typically government-funded for other Australians at different stages of life.

In contrast, services that directly support health, independence, and safety — such as clinical care or personal support — attract lower or no co-contributions.

What Happens to Your Unspent HCP Funds?

For all transitioned HCP clients both grandfathered and non-grandfathered, if you had unspent Home Care Package funds at the time of transition:

• These funds will carry over to Support at Home

• They can be used after your quarterly Support at Home budget is exhausted

• Use of funds must still align with your assessed care needs

• They can be used for extra ongoing services, or AT-HM equipment, modifications and support.

• You can continue using them until they are fully spent or you exit the Support at Home Program

Note: HCP unspent funds should be used before requesting funding from the separate Assistive Technology and Home Modifications Scheme (AT-HM) funding where applicable.

Example: If you need a shower chair and have unspent HCP funds, those funds must be used first before requesting the item through the AT-HM scheme.

What Happens to Hardship Arrangements?

If you have a hardship arrangement in place before 1 November 2025, this arrangement will continue into the Support at Home Program until its approved end date.

Once your hardship arrangement expires:

• You will be required to pay the transitional individual contribution rate unless you apply and are approved for a new hardship assessment under the Support at Home guidelines.

The system continues to offer hardship protections to ensure that financial difficulty does not prevent access to necessary care.

Key Takeaways for Current Clients and Families

• Grandfathered HCP clients are no worse off in terms of contribution rates, and will pay discounted co-contribution rates and keep their lifetime cap of $82,018.15.

• The Income Tested Care Fee (ITCF) will be replaced by co-contributions under Support at Home.

• Contribution rates are tied to the type of service received, not the funding classification.

• Clinical services remain fully government-funded with no co-contributions required.

• Existing hardship arrangements will continue until they expire.

• Unspent HCP funds will carry over into your Support at Home budget for all transitioned HCP Clients i.e. grandfathered and non-grandfathered HCP clients.

How Right at Home Supports You Through These Changes

The transition to Support at Home may feel complex, but Right at Home is here to help. We can assist by:

• Confirming your grandfathered or non grandfathered status

• Explaining your co-contribution rates and other protections

• Supporting you through reassessments, hardship applications, and care plan reviews

• Helping you confidently navigate the new funding system

• Download our HCP vs Support at Home Comparison Guide

Book Your Free Consultation Today

If you have questions about how co-contributions, grandfathering, or hardship protections apply to you or your family, contact Right at Home to book your free consultation. We’re here to ensure you feel informed and supported as the aged care system reforms and evolves. 

Right at Home Australia is a leading provider of quality in-home care. Our mission is to improve the quality of life for those we serve ensuring the Right Care, Right at Home™.  We support people living with complex and post-operative care needs, dementia and cognitive decline, seniors, and adults living with a disability including NDIS participants. Our tailored services help clients to remain safe and independent in their homes. We are an Approved Provider under the Aged Care Act, meaning we can provide quality support at home under a government-funded home care package. We also offer private pay arrangements for those who do not have government funding, or who wish to pay privately for top-up care. Right at Home is all about you. We are available 24/7 so contact your local office today. You can also call our national number on 1300 363 802. 

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