As providers navigate all of their new obligations under the new Aged Care Act 2024 (Cth) (new Act), our clients and team have recently been focusing on the transition to Support at Home (SAH) with the release of guidance in the SAH Handbook, Transition Guide and Program Manual.
On 24 March 2025, the Department of Health and Aged Care (Department) released further SAH Pricing Guidance to help providers set prices from 1 July 2025 to 1 July 2026, when price caps on SAH services will be introduced.
In this update, we address some of the key questions we've been receiving.
Existing Home Care Package (HCP) consumers will automatically transition to the SAH program from 1 July 2025. The Government has indicated it will adopt the 'no worse off' principle for the transition from HCP to SAH. However, how this looks operationally is still unclear.
While the Aged Care Rules 2025 are being finalised, the SAH Handbook is the main guidance for providers during the transition. The SAH Handbook states that full rate pensioners that are not required to contribute to their HCP as of 12 September 2024 will not pay fees under SAH. Those required to contribute to HCP fees as of 12 September 2024 may see changes in their contribution rates, but will pay the same or less under SAH.
Individuals reassessed after 1 July 2025 will receive a new SAH classification, which may change their consumer contribution amount based on the volume and type of services received. This position may conflict with the 'no worse off' principle the Government has indicated it will adopt. It remains to be seen how the SAH transition and reclassification process will work. We anticipate that individuals reclassified to a higher level of care will be 'no worse off' than if they were reclassified to a similar level of care under the previous HCP system.
Further guidance on the SAH transition and reclassification process is needed to clarify this position. The SAH Transition Guide indicates that communication will be issued to existing HCP recipients next month on how the transition will affect them, including their contribution obligations. We expect the Department to provide further guidance and clarity before the commencement of SAH.
The SAH pricing guidance released recently confirms that providers must implement new SAH Agreements to comply with the new Act and transition individuals to SAH pricing. This aligns with the initial guidance in the SAH Transition Guide, which specifies that providers should implement new service agreements from April 2025. Providers are required to set prices reasonably and transparently, and keep evidence of their pricing methods. This requirement reflects the focus on additional consumer protections under SAH. The Department has also released a fact sheet summarising indicative prices providers may charge for SAH services, helping providers compare their prices with the wider market before price caps are introduced on 1 July 2026.
Our team is developing compliant Support at Home agreements and other templates to help providers meet their obligations under the new Act, which can be explored on our Aged Care Solutions page. If you have any questions or are interested in these products, we would be delighted to assist you.
