2026 Budget Update
Navigating the aged care system can feel like learning a second language, especially with the major reforms currently rolling out across Australia. If you are supporting a loved one to stay independent at home, you have likely heard about the new Support at Home program, which replaced Home Care Packages in November 2025.
One of the most significant pieces of news for families is a change coming in late 2026. From 1 October 2026, the Australian Government will move personal care into a category that is fully funded. This is a major win for dignity and affordability, ensuring that essential daily support doesn't put an unnecessary strain on the family budget.
In the context of Support at Home personal care, these services are the “hands-on” tasks that help someone manage their daily life and hygiene. They are essential for health, safety, and self-esteem.
Currently, personal care is sitting in the “Independence” category, which means most people have to pay a means-tested co-contribution for every visit. However, the government has recognized that these aren’t “optional extras” they are essential services.
By reclassifying these tasks, the government is acknowledging that in-home personal care is just as vital as nursing or physiotherapy. This shift ensures that no one has to choose between their financial stability and a morning shower.
When we talk about fully funded personal care, it covers a specific range of daily activities. From October 2026, you will pay $0 out-of-pocket for these approved services:
It is important to remember that this change only applies to services delivered from 1 October 2026 onwards. Any care received before this date will still attract the usual co-contribution fees.
The reason personal care is becoming free is that it is moving into the Clinical Supports category. This is a list of services the government already fully funds because they are considered medical or therapeutic necessities.
Other services already in this category include:
By grouping personal care with these clinical services, the government ensures that government funded personal care is accessible to everyone, regardless of their bank balance.
To access these services at no cost, there are a few simple requirements:
If your loved one is already approved for personal care, you don’t need to do anything. The personal care funding change happens automatically on the commencement date.
This reform is designed to make the system fairer. For many families, personal care co-contributions can add up to hundreds of dollars a month, leading some to “stretch” their visits or skip care to save money.
When personal care becomes free, it effectively “frees up” more of your quarterly budget. This means you could potentially redirect that funding toward other aged care support services that still require a contribution, like domestic cleaning, gardening, or transport.
Under the new Aged Care Act 2024, there are stronger protections to ensure prices are reasonable and transparent. Providers cannot charge you entry or exit fees, and they must publish their prices clearly so you can compare them with other providers.
If you transitioned from a Home Care Package, you are protected by a “no worse off” guarantee. This means your funding levels remain equivalent, and you keep your lower lifetime contribution cap.
At Kanda, we believe that aged care should be about more than just a checklist of tasks. It is about the human connection and the peace of mind that comes from knowing your parent or partner is in safe, respectful hands.
Our team is already preparing for the October 2026 transition to ensure all our clients benefit from the new funding models immediately. We take the "clinical" out of clinical care, focusing instead on how we can help your loved one live their best life at home with dignity and joy. Whether it is a helping hand in the morning or more complex clinical support, we are here to walk this path with you.
Contact the Kanda team today for a friendly, no-obligation chat about your home care options.
