Support at Home Reform 2025: Financial Preparation Guide for Aged Care Providers

<h2 style="font-weight:bold;font-size:1.5rem;margin-bottom:1rem;">Support at Home Reform: A Financial Preparation Guide</h2>

<p style="text-align:justify;margin-bottom:1rem;">The Support at Home program represents the most significant structural reform to home-based aged care in Australia's history. For providers currently delivering Home Care Packages (HCP) and Commonwealth Home Support Programme (CHSP) services, this is not a distant policy discussion — it requires immediate financial planning.</p>

<p style="text-align:justify;margin-bottom:1rem;">This guide focuses on the financial preparation that CFOs and finance leaders must undertake to ensure their organisations transition successfully.</p>

<h3 style="font-weight:bold;font-size:1.25rem;margin-bottom:0.75rem;">What's Changing</h3>

<p style="text-align:justify;margin-bottom:1rem;">Support at Home consolidates multiple existing programs into a single, needs-based system. The key financial implications include:</p>

<p style="text-align:justify;margin-bottom:0.5rem;"><strong>New Funding Classification:</strong> Support at Home uses a new classification and budget framework that replaces the current four-level Home Care Package structure. Providers must understand how their current client base maps to the new classification to model revenue impact.</p>

<p style="text-align:justify;margin-bottom:0.5rem;"><strong>Participant Contributions:</strong> A revised contribution framework means providers must build new billing systems and client communication processes. The shift in co-contribution structures will affect cash flow timing and collection processes.</p>

<p style="text-align:justify;margin-bottom:1rem;"><strong>Pricing Transparency:</strong> Enhanced pricing transparency requirements mean providers must clearly articulate their pricing to clients. This demands robust costing models that can justify pricing at a service-line level.</p>

<h3 style="font-weight:bold;font-size:1.25rem;margin-bottom:0.75rem;">Financial Preparation Checklist</h3>

<p style="text-align:justify;margin-bottom:1rem;">CFOs should be working through the following areas now:</p>

<p style="text-align:justify;margin-bottom:0.5rem;"><strong>1. Revenue Impact Modelling:</strong> Map your current HCP and CHSP client base to the Support at Home classification. Model best-case, expected, and worst-case revenue scenarios. Identify clients who may receive more or less funding under the new system. This analysis should inform your FY26 budget assumptions.</p>

<p style="text-align:justify;margin-bottom:0.5rem;"><strong>2. Cost Structure Review:</strong> The new program structure may change which costs are subsidised and which are borne by the provider or participant. Review your cost allocation methodology to ensure it aligns with the new funding categories. Pay particular attention to care management, transport, and allied health service costs.</p>

<p style="text-align:justify;margin-bottom:0.5rem;"><strong>3. Pricing Strategy:</strong> Develop your pricing approach for the new framework. This includes deciding whether to price at, below, or above any published price limits; establishing your co-contribution collection processes; and building pricing models that account for the true cost of service delivery including travel, administration and supervision.</p>

<p style="text-align:justify;margin-bottom:0.5rem;"><strong>4. Systems Readiness:</strong> Your financial and client management systems must be capable of handling the new funding classifications, billing structures and reporting requirements. Engage with your software providers now to understand their readiness timeline. Budget for any system upgrades or replacements needed.</p>

<p style="text-align:justify;margin-bottom:1rem;"><strong>5. Cash Flow Transition Planning:</strong> Any funding model transition creates cash flow disruption. Model the transition period carefully — when do existing HCP payments stop? When do Support at Home payments begin? Build a cash buffer to cover any gap period. We recommend maintaining at least 60 days of operating expenses as a transition reserve.</p>

<h3 style="font-weight:bold;font-size:1.25rem;margin-bottom:0.75rem;">Board Reporting During Transition</h3>

<p style="text-align:justify;margin-bottom:1rem;">Your board needs specific reporting on transition readiness. We recommend adding a dedicated section to your monthly board financial report covering:</p>

<ul style="margin-bottom:1rem;padding-left:1.5rem;"> <li style="margin-bottom:0.5rem;">Client base transition mapping progress</li> <li style="margin-bottom:0.5rem;">Revenue impact modelling results (with scenario ranges)</li> <li style="margin-bottom:0.5rem;">Systems readiness status and timeline</li> <li style="margin-bottom:0.5rem;">Staff training completion rates</li> <li style="margin-bottom:0.5rem;">Cash reserve adequacy for transition period</li> </ul>

<h3 style="font-weight:bold;font-size:1.25rem;margin-bottom:0.75rem;">Opportunities in the Reform</h3>

<p style="text-align:justify;margin-bottom:1rem;">While the transition creates uncertainty, it also creates opportunity for well-prepared providers. Organisations that invest in financial systems, costing accuracy, and pricing transparency will be better positioned to attract clients who are increasingly empowered to choose their provider. The consolidation of HCP and CHSP also simplifies administration for providers who currently manage both programs — potentially reducing overhead costs.</p>

<p style="text-align:justify;margin-bottom:1rem;">Providers with strong financial leadership will treat Support at Home as a strategic opportunity to strengthen their competitive position, improve their cost efficiency, and build more sustainable service delivery models.</p>

<p style="text-align:justify;margin-bottom:1rem;">The CFOs who start this financial preparation now — rather than waiting for final implementation details — will give their organisations the best chance of a smooth and financially sustainable transition.</p>