Big changes are coming to aged care from 1 November 2025, and they could significantly impact how much older Australians pay to stay in their own homes. The new Support at Home program will replace the current Home Care Package system, bringing a new fee structure that is means-tested on both income and assets –not just income, as it was before.

This shift means self-funded retirees and part-pensioners may need to pay significantly more out-of-pocket for everyday support services. If you’re hoping to stay at home longer but are concerned about affordability, the Home Equity Access Scheme (HEAS) may provide a practical funding solution.

Why staying at home may soon cost more

The current Home Care Package program calculates client contributions using the income-tested fee only. But under Support at Home, fees will be based on both assets and income and calculated as a percentage of the cost of each service.

Here’s what to expect:

• Clinical care services (e.g. nursing, allied health) will remain fully government-funded.
• Independence support services (e.g. showering, dressing, medication assistance) will attract co-contributions of 5% to 50%, depending on means.
• Everyday living services (e.g. cleaning, gardening, meal prep) will require contributions ranging from 17.5% to 80%.

This will result in higher fees for older Australians with means, especially self-funded retirees and homeowners –many of whom are “asset rich but cashflow poor.”

How the HEAS can help

The Home Equity Access Scheme is a government-backed loan available through Services Australia. It allows eligible retirees to access tax-free fortnightly payments or lump sums, using their home equity as security. You retain ownership and can stay in your home, with the loan repayable only when the home is sold or your estate is finalised.

Under HEAS, you can:

• Receive up to 150% of the Age Pension rate (even if you’re self-funded)
• Choose regular income or lump sum options
• Repay the loan voluntarily or from your estate
• Rely on the No Negative Equity Guarantee, ensuring you never owe more than the market value of your home.

A valuable bridge for staying at home longer

With aged care fees set to increase –particularly for non-clinical services –HEAS offers a way to fund care at home without selling the family home. This can help bridge cashflow shortfalls and extend your ability to live independently on your own terms.

Want to learn more?

For further insights, explore our related blogs:

•  Understanding Reverse Mortgages
•  Aged Care Reforms Starting 1 November 2025

Need help understanding the changes?

Contact Brendan O’Reilly at Peak Advice to explore how these reforms may fit into your retirement strategy.

At Peak Advice, we can assist you with navigating these options and helping you choose a solution that’s right for you. From understanding funding rules to coordinating care plans and managing Centrelink entitlements, we’re here to help you make confident, well-informed decisions.

Peak Advice are retirement planning and aged care experts located on the Sunshine Coast.

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