"No worse off": how grandfathering protects existing packages
Last updated 20 August 2026
Figures current as at 20 August 2026: lifetime caps indexed 20 March 2026; next indexation 20 September 2026.
The short version
- The test date is 12 September 2024. If on that date you had a Home Care Package, were on the National Priority System, or had been assessed or approved for a package, you are protected for life.
- Protected people keep HCP-era fee arrangements: full pensioners who paid no income-tested care fee keep paying $0; part pensioners and CSHC holders pay roughly 0–25%; self-funded retirees pay around 25% at most on non-clinical services.
- A lower lifetime cap applies: $86,185.23, versus $137,917.01 for everyone else.
- The protection survives reassessment and even moving into residential aged care.
Who qualifies — the 12 September 2024 test
When the government designed Support at Home, it promised that nobody already in the system would be made worse off by the new contribution rules. The line was drawn on 12 September 2024 — the day the reforms were announced. You're covered if, on that date, any of these was true:
- You had a Home Care Package, at any level, with any provider.
- You were waiting on the National Priority System for a package to be assigned.
- You had been assessed and approved for a package, even if you hadn't started services.
Nothing to apply for — the protection is applied automatically based on your records. Your monthly statements should reflect your protected rates; if they don't, query it with your provider.
What the protection actually gives you
Instead of the standard contribution rates (5–50% on independence services, 17.5–80% on everyday living), protected participants keep arrangements that mirror what they'd have paid under the old HCP fee rules:
| Your situation | What you pay |
|---|---|
| Full pensioner who paid no income-tested care fee under HCP | $0 — you keep paying nothing |
| Part pensioner / CSHC holder | Capped at roughly 0–25%, depending on your means |
| Self-funded retiree | Around 25% at most |
Clinical care — nursing, allied health, care management — is free for everyone regardless of grandfathering, and from 1 October 2026 personal care joins it.
Two lifetime caps — yours is the lower one
Every Support at Home participant has a lifetime cap on non-clinical contributions. For grandfathered participants the cap is $86,185.23; for everyone else it's $137,917.01. Once your total contributions reach your cap, you stop paying contributions altogether. Both figures are indexed on 20 March and 20 September each year, and fees you paid under the old system count toward the cap.
"No worse off" status survives reassessment — if your needs grow and you move to a higher classification, your protected rates and lower cap come with you. It even follows you into residential aged care, where the equivalent "no worse off" arrangements apply to your means-tested contributions there. You cannot lose the protection by changing providers, moving house or upgrading your funding.
Not sure if you're protected?
If you had anything to do with Home Care Packages before September 2024, it's worth checking. Tell us your story and we'll help you work out which rules apply to you.
Approved after 12 September 2024?
If your assessment or approval came after that date — including everyone who entered the system once Support at Home began on 1 November 2025 — the standard contribution arrangements apply: 5–50% on independence services, 17.5–80% on everyday living, free clinical care, and the higher $137,917.01 lifetime cap. The standard rules are explained in our contributions guide, and if paying is genuinely difficult, hardship provisions exist.
Common questions
I was on the waiting list on 12 September 2024 but only got my funding this year. Am I protected?
Yes. Being on the National Priority System on the test date is enough — it doesn't matter that your services started under Support at Home. Your protected rates and the $86,185.23 cap apply.
Will a reassessment cost me my grandfathered rates?
No. The protection survives reassessment. Transitioned HCP clients also have "upgrade only" protection, so a reassessment can't drop your funding below your HCP-equivalent budget.
I paid an income-tested care fee under my old package. Do I still pay something?
Most likely yes, but capped at roughly the levels above — around 0–25% for part pensioners and CSHC holders, and around 25% at most for self-funded retirees, on non-clinical services only. Your exact protected rate comes from Services Australia's records of your old fee arrangements.
Does grandfathering protect me from provider price rises?
No — it protects your contribution percentage, not the underlying prices, which providers set themselves. If your provider's hourly rates are well above the national medians, your budget drains faster and any percentage you do pay is applied to a bigger number. You can switch providers without losing your protection.
What happens if I move into residential aged care?
The "no worse off" principle follows you — your means-tested contributions in residential care are worked out under equivalent protective arrangements. Residential care has its own fee structure, so check your specific numbers with Services Australia before you decide anything.
Sources
- Department of Health, Disability and Ageing, health.gov.au — "no worse off" principle for Support at Home participants.
- Support at Home Program Manual — grandfathered contribution arrangements and lifetime caps.
- My Aged Care, myagedcare.gov.au — Support at Home costs and contributions, accessed 20 August 2026.
- Services Australia — aged care means assessment and fee records.