Key points

  • The “no worse off” principle protects existing HCP recipients who transitioned to Support at Home
  • It guarantees your financial arrangements are at least as favourable as they were under the old system
  • Transitioned recipients retain the grandfathered lifetime cap of $84,571, lower than the standard $130,000
  • Co-contribution rates and annual caps from your old package are preserved
  • The principle does not guarantee identical services, only equivalent financial protection
  • If you believe you are worse off, you have the right to escalate through formal complaints channels

What Is the “No Worse Off” Principle?

When the Australian Government replaced Home Care Packages with the Support at Home program, hundreds of thousands of older Australians were moved from one system to another. The “no worse off” principle is the government’s commitment that this transition will not leave anyone financially disadvantaged.

In practical terms, it means that if you were receiving a Home Care Package before the transition, your financial position under Support at Home should be at least as good as it was under the old system. Your funding levels, co-contribution rates, and lifetime caps should not increase to your detriment because of the changeover.

For the full details on how the Support at Home program works, see our complete guide to Support at Home.

Who Does It Apply To?

The “no worse off” principle applies to a specific group of people:

Covered:

  • People who were actively receiving a Home Care Package (Level 1, 2, 3, or 4) at the time of the transition
  • People who had been assigned a package and were in the process of setting up services with a provider

Not covered:

  • People who enter the Support at Home system as new participants after the transition date
  • People who were on the national priority queue (waiting list) but had not yet been assigned a package
  • People receiving only Commonwealth Home Support Programme (CHSP) services without an HCP

If you were on the waiting list at transition and have since been assessed under the new system, the standard Support at Home rules apply to you. The “no worse off” protections are specifically for those who had an active package.

What the Principle Protects

Co-Contribution Rates

Under the old HCP system, your income-tested care fee was calculated based on your income and assets. Under Support at Home, co-contributions work differently and apply at different rates depending on the service category (clinical, independence, or everyday living).

The “no worse off” principle ensures that your total co-contributions under Support at Home do not exceed what you would have paid under the old system. If the new calculation would result in higher out-of-pocket costs, you are protected at the old rate.

This is applied automatically through your means assessment. You should not need to apply for it separately. However, it is worth checking your statements to confirm it has been applied correctly.

Funding Levels

Your Support at Home classification should provide at least the same level of government funding you received through your HCP. The mapping from old HCP levels to new Support at Home classification levels was designed to ensure this.

The approximate mapping:

Old HCP LevelApproximate Annual FundingSupport at Home Equivalent
Level 1$9,750Classification 1-2
Level 2$17,220Classification 3-4
Level 3$37,650Classification 5-6
Level 4$57,140Classification 7-8

If your funding has decreased compared to your old package, this should be investigated. Contact My Aged Care on 1800 200 422 to have your transition reviewed.

The Grandfathered Lifetime Cap

This is one of the most significant protections and one that many people are not aware of.

Under Support at Home, every participant has a lifetime cap on how much they can be required to contribute in non-clinical co-contributions. Once you reach this cap, you pay nothing further for services in the independence and everyday living categories.

The standard lifetime cap for new Support at Home participants is $130,000 (subject to indexation).

However, transitioned HCP recipients are protected by a grandfathered lifetime cap of $84,571 (also subject to indexation). This is the equivalent of the old system’s lifetime cap, carried forward.

What this means in practice:

  • If you were on an HCP, you will reach your lifetime cap sooner
  • Over the course of your time in aged care, you will pay significantly less in total co-contributions
  • The difference between the two caps is approximately $51,700, which is a substantial financial benefit
  • Once you hit your grandfathered cap, you still receive all funded services without further co-contributions

This grandfathered cap applies for as long as you remain in the Support at Home system. It does not expire.

Annual Caps

In addition to the lifetime cap, there are annual caps on co-contributions. Transitioned recipients retain the more favourable annual cap from the old system if the new annual cap would be higher.

The annual cap limits how much you pay in a single financial year. Once reached, you pay no further co-contributions for the remainder of that year.

What the Principle Does NOT Protect

Understanding what “no worse off” does not cover is just as important as knowing what it does cover.

Specific Services May Change

The principle protects your financial arrangements, not the exact services you receive. Under Support at Home, service categories have been restructured into three groups:

  1. Clinical care (nursing, allied health, therapy)
  2. Independence services (assistive technology, home modifications, reablement)
  3. Everyday living (domestic help, meal preparation, transport)

From 1 October 2026, personal care (showering, dressing, grooming, non-clinical continence, eating, hygiene, and help self-administering medication) moves into clinical supports and becomes fully government funded, with no participant contribution. Until then, contributions applied to personal care.

Services that were bundled under your old HCP may now be categorised differently. Some services may be delivered differently or by different types of workers. The goal is equivalent support, but the mechanics may change.

Provider Fees and Structures

The old HCP system allowed providers to charge administration fees, case management fees, and various other charges from your package budget. Some providers charged up to 40% of the package in combined fees.

Under Support at Home, the fee structure has changed. Administration and case management costs are handled differently. While the “no worse off” principle protects your out-of-pocket costs, the internal structure of how your funding is allocated may look different on your statements.

Choice of Specific Service Types

If a particular service you received under your HCP is not available under Support at Home (because it has been replaced by an equivalent service or category), the principle does not require that the old service be maintained. What it requires is that your overall care and financial position remain equivalent.

How to Check If You Are Being Treated Correctly

Step 1: Review Your Budget Statement

Your Support at Home provider should give you a regular budget statement showing:

  • Your classification level and quarterly funding amount
  • Services used and their costs
  • Co-contributions you have been charged
  • Government subsidy amounts
  • Progress toward your annual and lifetime caps

Compare this to your last HCP statement. Your total out-of-pocket costs should not have increased purely because of the transition. To sense-check the figures, you can estimate your Support at Home budget and contributions and compare the result against what your statement shows.

Step 2: Check Your Means Assessment

Contact My Aged Care on 1800 200 422 and ask for a copy of your current means assessment. Confirm that:

  • Your co-contribution rate reflects the “no worse off” protection
  • Your lifetime cap is set at the grandfathered amount ($84,571, indexed)
  • Your annual cap reflects the old system’s rate if it is more favourable

Step 3: Compare Quarter by Quarter

Look at a full quarter under the old system and a full quarter under the new system. Compare:

  • Total co-contributions charged
  • Total services received (in hours or units)
  • Total funding available
  • Any fees or charges that appear new

If you see significant differences that are not explained by a change in your health needs, this warrants further investigation.

Step 4: Ask Your Provider

Your provider should be able to explain how your old HCP has been mapped to your new Support at Home classification. Ask them directly:

  • “Has my funding level changed as a result of the transition?”
  • “Are my co-contribution rates the same or lower than they were before?”
  • “What lifetime cap is being applied to my account?”
  • “Are there any new fees I was not paying under my HCP?”

If they cannot answer these questions clearly, that is a concern.

What to Do If You Think You Are Worse Off

Talk to Your Provider First

Many issues can be resolved by raising them directly with your provider. They may have made an administrative error in applying the transition rules, or there may be a misunderstanding about how your funding has been mapped.

Ask for a written explanation of any differences between your old and new arrangements.

Contact My Aged Care

If your provider cannot resolve the issue, contact My Aged Care on 1800 200 422. Ask them to review your transition to confirm that the “no worse off” protections have been applied correctly.

Lodge a Formal Complaint

If you believe the “no worse off” principle has been breached, you can lodge a complaint with the Aged Care Quality and Safety Commission on 1800 951 822 or at agedcarequality.gov.au.

The Commission can investigate whether:

  • Your co-contributions have been calculated correctly
  • Your lifetime cap has been set at the correct grandfathered amount
  • Your overall financial position has been maintained

Get Free Advocacy from OPAN

The Older Persons Advocacy Network (OPAN) provides free, independent advocacy. Call 1800 700 600.

An OPAN advocate can:

  • Review your old and new statements with you
  • Identify discrepancies in your co-contributions, caps, or funding
  • Help you prepare a complaint or review request
  • Communicate with your provider or My Aged Care on your behalf
  • Attend meetings with you for support

OPAN advocates are independent of both the government and providers. Their only interest is your wellbeing.

Real-World Scenarios

Scenario 1: Higher Co-Contributions After Transition

Margaret was on an HCP Level 3 and paid $45 per fortnight in income-tested care fees. After transitioning to Support at Home, her fortnightly co-contributions increased to $62. This should not happen under the “no worse off” principle. Margaret should contact My Aged Care to have her means assessment reviewed.

Scenario 2: Reduced Service Hours

Bill was receiving 6 hours of personal care per week under his HCP Level 4. After transition, his provider told him he could only receive 4 hours under his new classification. While the “no worse off” principle does not guarantee identical service hours, Bill should check whether his total funding has been maintained. If his funding is the same but his provider is charging higher hourly rates, he may want to compare providers through Carevo.

Scenario 3: Grandfathered Lifetime Cap Not Applied

Helen has been receiving aged care for several years and has accumulated $72,000 in lifetime co-contributions. Under the grandfathered cap of $84,571, she is approaching her limit. But her latest statement shows a lifetime cap of $130,000, the standard rate for new participants. This is an error. Helen should contact My Aged Care immediately to have her grandfathered cap reinstated.

Key Numbers to Remember

ItemGrandfathered (Transitioned HCP)Standard (New Participants)
Lifetime cap$84,571 (indexed)$130,000 (indexed)
Annual capBased on old system rateBased on new system rate
Clinical co-contribution$0$0
Independence co-contributionProtected at old rate if lowerStandard rate applies
Everyday living co-contributionProtected at old rate if lowerStandard rate applies

These figures are subject to annual indexation. Check the Department of Health and Aged Care website for the most current amounts.

How Carevo Can Help

If you are uncertain about whether your transition has been handled correctly, Carevo connects you with aged care providers who understand the “no worse off” protections and can review your situation.

Through our platform, you can find providers who will:

  • Compare your old HCP and new Support at Home arrangements
  • Identify any discrepancies in funding, co-contributions, or caps
  • Help you raise issues with My Aged Care if needed
  • Provide transparent pricing so you can see exactly where your funding goes

Carevo lists 2,131 aged care providers across 1,568 suburbs, so families can compare options close to home rather than settling for the first provider assigned at transition. Visit Carevo to find a provider in your area, or explore the Support at Home program page for more information on how the system works.

Summary

The “no worse off” principle is an important protection for the hundreds of thousands of older Australians who transitioned from Home Care Packages to Support at Home. It guarantees that your co-contributions, funding levels, and lifetime caps remain at least as favourable as they were under the old system.

However, it does not protect every aspect of your care. Service types, delivery models, and provider fee structures may change. Understanding what is and is not protected puts you in a stronger position to identify problems and get them fixed.

If something does not look right, do not assume it is correct just because it is on an official statement. Check it, question it, and use the advocacy and complaints channels available to you. The system is complex, and errors do happen.

For a full overview of the program, read our complete guide to Support at Home.