On 19 May 2026, the Government announced that the implementation of formal price caps under the Support at Home program had been deferred indefinitely. Originally due to take effect on 1 July 2026, the price caps would have established maximum prices for each service type including nursing care, personal care, and domestic assistance. The Government confirmed it would take the time necessary to get broader pricing settings right and that it will not proceed with price caps until it has greater confidence in the stability of the market.
Why has the price cap been deferred?
The Government acknowledged that setting price caps amid the present economic instability risked locking in inflated costs and producing poor outcomes for older people. The Government said it is mindful of the unintended consequences in comparable schemes. Health Minister Mark Butler noted that despite price caps in the NDIS, 'pretty much everyone charges at the price cap in spite of that being something that was intended to drive competition in the sector.' The Government recognises that any caps must strike the right balance between keeping the sector viable and protecting older Australians from overcharging.
Enhanced regulatory powers and consumer protections
The Government has however, introduced a number of measures to protect older Australians:
- Expanded powers for the ACQSC: the ACQSC is now empowered to order refunds where overcharging is identified and take regulatory action against providers failing to issue monthly statements. Financial and prudential compliance is currently a key focus area of the ACQSC. While the ACQSC has committed to work collaboratively with registered providers to resolve these issues, repeated or deliberate non-compliance may result in penalties or refund orders.
- Price transparency: a new National Summary of Support at Home Prices will be published quarterly, displaying the median price and range of prices charged by providers to enable older Australians to benchmark their provider's pricing.
- Monitoring personal care pricing: the Department and the ACQSC will specifically monitor the price of personal care as they transition into the Clinical Care category, building on the removal of out-of-pocket costs for showering, dressing and continence services under Support at Home.
- Frequency of price increases: providers are being encouraged to cap the frequency of price increases at twice annually, so that older people can plan and budget their packages with greater confidence.
- Working group: the Government plans to convene a working group with OPAN, COTA, the ACQSC and Ageing Australia, focusing on three key priorities: establishing a more robust definition of reasonable pricing, undertaking further consultation on the multi-provider model, and developing further guidance and supports for older people who self-manage their packages.
What should providers do now?
Providers should be aware of the following immediate regulatory expectations:
- Review pricing practices: ensure all pricing is reasonable and can be demonstrably linked to the cost of service delivery.
- Pricing practices: although price caps have been deferred, providers should not assume this represents a permanent position. Ongoing pricing scrutiny is likely, and registered providers should ensure their price setting processes are transparent, justified, and well documented. It is important providers can also demonstrate agreement with consumers to the prices being charged and any increases.
- Regulatory engagement: the enhanced powers of the regulator mean that providers can expect more active oversight. Compliance teams should review current governance arrangements, complaint handling processes, and internal audit functions.
Please do not hesitate to reach out if you have any concerns.
