Outline

This article explains:

• Who qualifies as a grandfathered Home Care Package (HCP) participant.
• What the “no worse off” principle means.
• How Category B contribution arrangements work.
• How the fortnightly contribution cap is calculated.
• The relationship between old HCP Income-Tested Fees and Support at Home contributions.
• Frequently asked questions about grandfathering and contribution protections.

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Understanding Grandfathered Home Care Packages and the “No Worse Off” Principle Under Support at Home

When the Australian Government introduced the Support at Home (SaH) program on 1 November 2025, special transition arrangements were put in place to protect many existing Home Care Package (HCP) recipients from paying more than they would have under the previous system.

These protections are commonly referred to as the “no worse off” principle. The principle ensures that eligible participants continue to receive the support needed while limiting the financial impact of moving to the new funding model.

Who Is Protected Under the “No Worse Off” Principle?

The protections apply to you if you:

• were receiving a Home Care Package on or before 12 September 2024, or
• had been approved for a Home Care Package by that date and later entered the program.

You would automatically have transitioned to Support at Home with protected contribution arrangements.

If you were required to pay an Income-Tested Fee (ITF) under the former Home Care Package program you would be known as a Category B participants.

If you did not pay an Income-Tested Fee (such as many full-rate Age Pension recipients) then you would generally fall into Category A and continue to pay no contributions.

What Does “No Worse Off” Mean?

The “no worse off” principle means if you are an eligible grandfathered participant you should not pay more in contributions under Support at Home than you would have under the previous Home Care Package system. Instead of paying a daily Income-Tested Fee, you now contribute towards the cost of certain services you actually receive. However, additional protections ensure these contributions remain limited.

How Do Contributions Work Under Support at Home?

For Category B participants:

• Contributions are calculated as a percentage of the cost of eligible services.
• The percentage depends on your financial assessment completed by Services Australia.
• Contributions apply only to non-clinical services.

Clinical Services remain fully government funded.

You pay 0% for services such as:

• Nursing
• Physiotherapy
• Occupational therapy
• Other approved clinical supports

Non-Clinical Services

Contributions may apply to services within the:

• Independence category
• Everyday Living category

The contribution percentage is based on your assessable income using formulas aligned with the Age Pension income assessment.

The Category B Fortnightly Contribution Cap

One of the most important protections if you are a grandfathered participant is the fortnightly contribution cap.

Even if the percentage-based contribution calculation would normally result in a higher amount, you will never pay more than your protected fortnightly cap.

How Is the Cap Calculated?

The cap is based on your previous Home Care Package Income-Tested Fee.

The daily fee paid under the HCP program is multiplied by 14 to produce a maximum fortnightly contribution.

For example:

• Previous Income-Tested Fee: $38.72 per day
• Fortnightly cap: $542.08
• Approximate monthly equivalent: $1,178 (varying slightly depending on the number of days in the month)

Regardless of how many eligible services are received during that fortnight, your contributions will not exceed this protected amount.

Services Australia administers and monitors these contribution limits.

Example

A grandfathered Category B participant receives several Independence and Everyday Living services during a fortnight. Based on their income assessment, their contribution rate is calculated at 25% of the service costs.

If that calculation results in contributions of $680 for the fortnight, the participant will not pay the full amount. Instead, because their protected fortnightly cap is $542.08, that is the maximum contribution payable.

This ensures they remain financially protected under the “no worse off” arrangements.

Lifetime Contribution Protection

The fortnightly cap is separate from the lifetime contribution cap. Grandfathered participants generally retain the lower lifetime contribution limits that applied under the former Home Care Package program.

These protected limits are typically indexed each year and remain significantly lower than the lifetime cap applying to new entrants under Support at Home.

Hardship Provisions

If you previously received financial hardship assistance you may continue to access hardship arrangements under Support at Home where eligible. Applications can be carried across or reassessed depending on the circumstances.

What Happens if Care Needs Change?

If your care needs increase, you may move to an equivalent or higher Support at Home funding classification. Importantly, if you are an eligible grandfathered participant you will retain your “no worse off” contribution protection even if your funding classification changes.

Understanding the Former Home Care Package Income-Tested Fee

Before Support at Home, contributions were based on a daily Income-Tested Fee rather than individual services.

Key features included:

• Maximum Income-Tested Fee of $38.72 per day (from 1 November 2025 transition reference).
• Lower contribution bands for participants with lower assessable incomes.
• No Income-Tested Fee for many full-rate Age Pension recipients.
• Annual and lifetime contribution caps to protect participants from excessive costs.
• An optional Basic Daily Fee that some providers charged, although many chose to waive it.

Importantly, the Income-Tested Fee was based solely on the participants financial circumstances, not on the level of Home Care Package they received. Whether someone had a Level 1 or Level 4 package, the Income-Tested Fee rules were exactly the same. 

This historical daily fee now forms the basis of the protected fortnightly contribution cap for eligible Category B participants.

Individual Contribution Amounts

Every participant’s contribution arrangements are unique.

Services Australia calculates each person’s contribution based on their financial assessment and advises the individual contribution rate in writing.

If you are wanting to confirm your protected fortnightly cap you should refer to:

• your previous Home Care Package Income-Tested Fee advice;
• your Services Australia correspondence; or
• My Aged Care.

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Frequently Asked Questions

Who is considered a grandfathered participant?

If you were receiving or had been approved for a Home Care Package on or before 12 September 2024 and transitioned into Support at Home you are a grandfathered participant.

What is the “no worse off” principle?

It guarantees eligible grandfathered participants will not pay more in contributions than you would have paid under the previous Home Care Package system.

What is a Category B participant?

A Category B participant is a grandfathered participant who was paying an Income-Tested Fee under the former Home Care Package program.

Do grandfathered participants pay for clinical services?

No. Approved clinical services remain fully government funded.

What services may require a contribution?

Contributions may apply to eligible services within the Independence and Everyday Living categories, depending on your individual financial assessment.

What is the fortnightly contribution cap?

It is the maximum amount a Category B participant can contribute during a fortnight, based on the Income-Tested Fee previously paid under the Home Care Package program.

Who calculates my contribution?

Services Australia calculates contribution rates based on your income assessment and advises you of the amount payable.

Will my protections remain if my care needs change?

Yes. Eligible grandfathered participants generally retain their “no worse off” protections even if you move to a higher Support at Home funding classification.

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Key Takeaways

• The “no worse off” principle protects eligible Home Care Package participants who have transitioned to Support at Home.
• Grandfathered participants approved on or before 12 September 2024 receive special contribution protections.
• Category B participants are those who previously paid an Income-Tested Fee under the Home Care Package program.
• Clinical services continue to attract no personal contribution.
• Contributions only apply to eligible non-clinical services.
• A protected fortnightly contribution cap ensures you never pay more than you would have under the former Home Care Package arrangements.
• The cap is based on your previous Income-Tested Fee.
• Services Australia calculates and administers individual contribution amounts.
• Eligible participants retain these protections even if your care needs increase and your Support at Home classification changes.

Disclaimer: This article provides general information based on the Australian Government’s Support at Home program settings at the time of publication. Individual circumstances may vary. 

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