Support at Home Personal Care Funding Changes October 2026: A Financial Planner Guide for Australians

From 1 October 2026, a significant change to Australia's aged care funding model took effect: personal care services delivered under the Support at Home program are now fully funded by the Australian Government, with no out-of-pocket contribution required from eligible participants. For older Australians and their families, this change has meaningful implications for aged care budgets, financial planning strategies, and the way care plans are structured. A qualified financial planner can help you understand what this means for your situation and update your aged care financial strategy accordingly.

Understanding the October 2026 Support at Home Changes

The Support at Home program, which replaced the former Home Care Packages program on 1 July 2025 under the Aged Care Act 2024, provides government-funded support to help older Australians remain living independently at home. Prior to 1 October 2026, personal care services — such as assistance with showering, dressing, eating, personal hygiene, and medication self-administration — were classified under the "Independence" contribution category, meaning participants were required to pay a means-tested contribution toward these services.

From 1 October 2026, personal care services have been reclassified to the "Clinical Supports" contribution category. This administrative change means the Australian Government now fully funds approved personal care services for eligible participants, provided those services are included in the participant's support plan and budget. Participants are no longer required to pay out-of-pocket contributions for these specific services.

What Personal Care Services Are Covered?

The definition of personal care under Support at Home remains unchanged. Fully funded personal care services include assistance with showering and bathing, dressing and grooming, eating and drinking, personal hygiene, non-clinical continence management, and assistance with the self-administration of medication. Services such as domestic help, gardening, and social support continue to attract participant contributions under existing arrangements.

Key Financial Planning Considerations

While the October 2026 change reduces out-of-pocket costs for personal care, it does not eliminate the need for careful aged care financial planning. The following considerations are particularly important for Australians navigating the Support at Home program.

• Budget reallocation opportunities — If you or a family member were previously contributing to personal care costs, those funds may now be available for other care services or personal expenses. A financial planner can help you review your overall aged care budget and identify where freed-up funds can be best directed.
• Care plan review — Participants who previously limited their personal care services due to cost concerns may now be able to increase the volume of care they receive within their approved budget. Providers are encouraged to discuss updated care plans with participants, and a financial planner can help you understand the financial implications of any changes.
• Means assessment and contributions for other services — The October 2026 change applies only to personal care services. Contributions for other Support at Home services — including domestic assistance, gardening, transport, and social support — continue to apply based on your means assessment. Understanding your contribution obligations across all service categories remains important.
• Interaction with residential aged care planning — For Australians who may transition from home care to residential aged care in the future, the Support at Home changes do not affect residential care means assessments. Residential care continues to involve separate means testing for the Basic Daily Fee, Means-Tested Care Fee, and accommodation costs (RAD or DAP). A financial planner can help you model both scenarios.
• Estate planning implications — Reduced out-of-pocket aged care costs can affect the rate at which assets are drawn down, which has implications for estate planning and intergenerational wealth transfer. A financial planner can help you update your estate plan to reflect your revised aged care cost projections.
• Centrelink and Services Australia reporting obligations — Participants are legally required to report changes in personal or financial circumstances to Services Australia within 28 days. A financial planner can help you understand what changes trigger a reporting obligation and how to manage your means assessment proactively.

Common Mistakes to Avoid

The complexity of Australia's aged care system means that well-intentioned decisions can sometimes have unintended financial consequences. The following mistakes are among the most common observed by financial planners working with aged care clients.

• Assuming all aged care costs have been eliminated — The October 2026 change covers personal care only. Many participants and families mistakenly believe that all Support at Home costs are now government-funded. Contributions for domestic, social, and other support services continue to apply.
• Failing to update care plans — Participants who were previously limiting their personal care services due to cost may not realise they can now access more care within their approved budget. Not reviewing your care plan after the October 2026 change may mean you are receiving less support than you are entitled to.
• Gifting assets without understanding the look-back rules — The aged care means assessment applies a five-year look-back period for gifting. Transferring assets to reduce your assessable means can result in those assets being counted as a "deprived asset" for up to five years, potentially increasing your contribution obligations. A financial planner can help you understand the rules before making any transfers.
• Not seeking specialist advice before entering residential care — If a transition from home care to residential aged care is anticipated, the financial decisions made at that point — including whether to pay a Refundable Accommodation Deposit (RAD) or Daily Accommodation Payment (DAP), and how to structure assets — can have significant long-term financial consequences. These decisions should be made with the guidance of a financial planner who specialises in aged care.
• Overlooking the interaction between aged care costs and the Age Pension — Aged care means assessments and Age Pension means tests are separate but interconnected. Changes to your asset or income position for aged care purposes can affect your Age Pension entitlement. A financial planner can model the combined impact of both assessments.

Australian Regulatory Context

The Support at Home program operates under the Aged Care Act 2024, which came into effect on 1 July 2025 and replaced the former Aged Care Act 1997. The October 2026 personal care funding change was implemented by the Department of Health and Aged Care and administered through My Aged Care, the government's central access point for aged care services.

Financial planners who provide advice on aged care are subject to the Corporations Act 2001 and must hold an Australian Financial Services Licence (AFSL) or operate as an authorised representative of an AFSL holder. Aged care financial advice is a specialist area, and the Australian Securities and Investments Commission (ASIC) requires that advisers who provide personal advice on aged care products and strategies meet the professional standards set out under the Delivering Better Financial Outcomes (DBFO) reforms.

The Aged Care Quality and Safety Commission oversees the quality and safety of aged care services, including Support at Home providers. If you have concerns about the quality of care you or a family member is receiving, the Commission is the appropriate body to contact.

Means assessments for Support at Home are conducted by Services Australia (or the Department of Veterans' Affairs for eligible veterans). Participants have the right to request a review of their means assessment if they believe it is incorrect.

Questions to Ask a Financial Planner About Support at Home

When engaging a financial planner to help navigate the Support at Home changes and broader aged care financial planning, the following questions will help you assess their expertise and ensure you receive appropriate advice.

1. Do you specialise in aged care financial planning, and are you familiar with the October 2026 Support at Home personal care funding changes?
2. How do the Support at Home contribution rules interact with my current asset and income position, and what contributions am I likely to pay for non-personal care services?
3. How should I update my care plan to take advantage of the fully funded personal care services, and what are the financial implications of increasing my care volume?
4. If I transition to residential aged care in the future, how should I structure my assets now to optimise my means assessment outcome?
5. How do my aged care costs interact with my Age Pension entitlement, and what changes to my financial position could affect both?
6. What are the gifting rules under the aged care means assessment, and how do they interact with my estate planning objectives?
7. Can you model different scenarios — including remaining at home versus transitioning to residential care — so I can understand the long-term financial implications of each?

How MyMoney® Can Help

Aged care financial planning is one of the most complex areas of personal finance, and the October 2026 Support at Home changes add another layer of detail that requires specialist expertise. MyMoney® connects Australians with qualified financial planners who specialise in aged care, helping you navigate the Support at Home program, means assessments, residential care decisions, and the interaction between aged care costs and your broader financial plan.

Whether you are planning ahead for your own future care needs or helping a parent or family member navigate the current system, the right financial planner can provide clarity, confidence, and a strategy tailored to your circumstances.

Post a Brief to describe your aged care financial planning needs and receive proposals from specialist financial planners, or Browse Financial Planners on the MyMoney® Marketplace to find professionals with the expertise your situation requires.