If you or a loved one are already receiving a Home Care Package (HCP), you may be wondering: will this change mean more fees or less care?
The answer depends entirely on when you entered the aged care system.
In this article, we’ll explain exactly what the no worse off principle in Support at Home covers, who it applies to, and what it means for your care and contributions.
What Is the No Worse Off Principle?
The No Worse Off Principle is a government protection ensuring that people already in the aged care system don’t pay more or receive less care simply because the program has changed names to Support at Home (SAH).
This protection means:
- Fee-Free Guarantee: If you were assessed as paying $0 fees under your HCP, you will never pay contributions under SAH.
- Capped Contributions: If you paid an income‑tested care fee, your new contributions will be the same or lower.
- Funding Continuity: Your existing funding level moves across to a “Transitioned HCP Level” (Level 1–4).
- Unspent Funds: Any unspent HCP funds transfer with you and can still be used for eligible services like home modifications.
Who does the No Worse off Principle apply to?
The principle only applies to individuals who were receiving a Home Care Package or were assessed as eligible for one on or before 12 September 2024.
The government classifies this group as “grandfathered participants,” meaning they are fully protected.
If you entered the system after this date, you are considered a “transitional” or “new” participant, and these protections do not apply to you.
Support at Home comparison: Grandfathered vs. Transitional vs. New Participants
To see where you stand, check your assessment dates below:
| Status | Who is this? | Fees & Contributions | No Worse Off Protection? |
| Grandfathered Participant | Receiving a package or assessed as eligible on or before 12 Sept 2024. | Capped. You pay the same or less than your HCP fees. Full pensioners pay $0. | YES |
| Transitional Participant | Assessed as eligible between 12 Sept 2024 – 31 Oct 2025. | Standard Rates. You are treated as a new entrant and pay standard fees based on income/assets. | NO |
| New Entrant | Assessed on or after 1 Nov 2025. | Standard Rates. You pay mandatory contributions for non-clinical services (e.g., cleaning). | NO |
What the No Worse Off Principle covers
As a grandfathered participant, several key things are protected:
1. Your care and support level
The principle ensures continuity of care. Your existing care needs are recognised, and you’ll keep a similar level of support under SAH.
- Your current HCP level (Level 1–4) is converted into a “Transitioned HCP Level” with the same annual funding.
- Funding can still be used for clinical care (nursing), independence supports (personal care), and everyday living (cleaning).
- Providers should aim to maintain your current roster so your support stays consistent.
2. Your financial contributions
This is the core financial protection. Your costs are locked in.
- Fee-Free: If you pay no income tested fee now, you will never be asked to pay contributions for SAH.
- Capped Fees: If you currently pay an income tested fee, your new contributions will be no higher than what you pay now.
- These rates apply to all services, including personal care and domestic help.
3. Your lifetime cap
Grandfathered participants keep the existing Home Care Package lifetime cap on contributions.
- The cap is currently $84,572 (indexed twice a year in March and September).
- Once you reach this amount, you pay no further contributions for SAH services.
- Any contributions already paid under HCP count towards this cap.
4. Your funding and unspent funds
Your existing funding and savings are safeguarded.
- Your current HCP funding level moves to SAH as a “Transitioned HCP Level” with the same annual budget.
- Any unspent funds in your account at transition transfer over.
- You can continue using these funds for eligible services (like equipment) as long as they meet your assessed needs.
5. Transition safeguards for vulnerable people
The government intends that no one already in the system is left worse off.
- If you were on the National Priority System or assessed as eligible by 12 September 2024, you are covered.
- Your existing contribution arrangements stay in place, even if you are later reassessed to a higher classification.
What the Principle does NOT guarantee
The principle protects your funding and fees, but not every operational detail. It does not guarantee:
- Identical rostering: Providers may adjust schedules (e.g., fewer but longer visits) to align with new classifications, provided your care needs are met.
- Specific support workers: Staff turnover and roster changes can still happen.
- No reassessment ever: You are protected from reassessment triggered by the transition. If your health changes later, you may be reassessed for higher funding, though your fee protections will remain.
- Fixed provider pricing: Your contribution is capped, but provider prices are not. If a provider raises hourly rates, your budget may purchase fewer hours.
- Access to excluded items: New rules strictly prohibit items like general renovations or certain natural therapies, even if you purchased them previously.
- Carry-over rules for NEW funds: While HCP unspent funds transfer over, new SAH quarterly funding has strict “use it or lose it” limits.
The No Worse of Principle does not apply to CHSP recipients
The “no worse off” principle works differently for Commonwealth Home Support Program (CHSP) recipients because the program isn’t changing yet.
- Timeline: CHSP continues as normal until at least 1 July 2027.
- Future Transition: When CHSP eventually merges into SAH, clients will likely be assessed under standard contribution rules based on income and assets, rather than receiving grandfathered rates.
For now, your services and fees remain exactly the same. We recommend staying in touch with your provider for updates as 2027 approaches.
How the Principle applies to Home Care Package holders (Level 1–4)
1. How your package budget maps to Support at Home
You do not lose funding value. Your package automatically converts to a “Transitioned HCP Level” matching your previous subsidy.
- Budget Continuity: A Level 4 package holder moves to a “Transitioned HCP Level 4” with the exact same annual funding.
- Quarterly Payments: Unlike the old daily accumulation, your new budget is deposited every three months.
2. What happens to your unspent funds
This is a critical distinction: your previous HCP money is treated differently from your new SAH money.
- Old “HCP” Funds: Any unspent funds on 1 November 2025 transfer with you. These are ring-fenced and do not expire. Note that you are required to spend these funds first if you need Assistive Technology or Home Modifications.
- New SAH Funds: New quarterly payments have strict limits. You can only carry over a small amount (e.g., 10% or $1,000) to the next quarter, anything above this cap is returned to the government.
3. Will I keep similar levels of support?
Generally, yes. Your funding remains sufficient to purchase a similar mix of clinical, independence and everyday living services. Your budget also includes a dedicated portion (typically 10%) for care management, ensuring you still have a provider to coordinate your services.
4. How your fees are protected
Your fees are capped at your pre-transition level.
- Income Tested Fee: If you paid an Income Tested Care Fee, your new contribution will never exceed that old amount.
- Fee-Free: Full pensioners paying $0 remain on a $0 contribution rate, exempt from the mandatory contributions new entrants pay for services like cleaning.
5. How do I transition to the new program?
The transition is automatic. You do not need a new assessment, and your data moved automatically on 1 November 2025. You stay with your current provider unless you choose to switch.
Read our Support at Home Guidelines for more information.
What if you were assessed between Sept 2024 and Oct 2025? (Transitional Participants)
There is a specific group of people who fall into a middle ground, those who were assessed as eligible for a Home Care Package after the reform announcement (12 September 2024) but before the new SAH program started (1 November 2025).
If you fall into this transitional group, the no worse off principle does not apply to you and you will pay standard contributions based on your income and assets.
What if you’re new to the Home Care System?
If you apply for Support at Home on or after 1 November 2025, you are subject to standard contribution rules:
- Clinical care is fully government-funded (you pay nothing).
- Independence services attract moderate contributions.
- Everyday living services (cleaning, gardening) attract the highest contributions.
There is also a higher lifetime cap of $135,318.69 (indexed) for non‑clinical services.
Fees and Contributions: What will happen under the No Worse Off Principle?
Protections depend on your entry date and financial status.
1. Grandfathered Participants (Assessed on/before 12 Sept 2024)
- Full Pensioners: Pay $0 contributions. Even if care needs increase, you remain fee-free.
- Part Pensioners & Self-Funded: Contributions are capped at your old Income Tested Care Fee level, effectively giving you a discounted rate compared to new entrants.
2. Transitional Participants (Assessed 12 Sept 2024 – 31 Oct 2025)
Not covered. You pay standard contributions based on your pension status and assets.
3. What Remains Under Review
Government price caps for services don’t start until 1 July 2026. Until then, providers set their own prices, meaning your budget’s buying power could fluctuate if hourly rates rise.
Read our article on Support at Home Fees get a clear understanding of your contributions under the the program.
No Worse Off Principle examples under Support at Home
To understand how these rules apply in real life, let’s look at three different people entering the SAH system.
Example 1 – The “Grandfathered” Full Pensioner
- Status: Elsie (82) had a Level 2 package before Sept 2024.
- Scenario: Transitions to Support at Home; later reassessed to Level 4.
- Outcome: Elsie continues to pay $0 in participant contributions forever.
Example 2 – The “Transitional” Participant
- Status: Bob (79) applied Jan 2025 (after announcement).
- Scenario: Moves to Support at Home as a part-pensioner.
- Outcome: Bob is not covered by the no worse off principle. He pays standard contributions (e.g., 5%–50%) for services like cleaning.
Example 3 – The “New Entrant” Self-Funded Retiree
- Status: Grace (75) applies Dec 2025.
- Outcome: Grace pays full participant contributions (up to 80% for everyday living) until reaching the higher lifetime cap ($135k).
How Aged Care Decisions can help
Navigating the shift to Support at Home can feel overwhelming, especially when it comes to understanding fees, contributions and what’s protected.
Aged Care Decisions is Australia’s largest free aged care support service. We help families by:
- Navigating the Changes: We explain how the new Support at Home rules work so you can understand your options with confidence.
- Comparing Providers: We provide a customised list of verified, available providers that match your care needs, location, and budget.
- Simplifying the Search: Instead of calling dozens of agencies yourself, we do the legwork to connect you with the right support.
Our service is no cost, independent and obligation free.
We’ll help you cut through the confusion and make sure you’re getting the right support, at the right price, in the comfort of home.
