Significant changes to Australia’s aged home care system are creating tension between providers and equipment suppliers. The new Support at Home program, which replaced Home Care Packages on November 1, aims to keep older Australians living safely at home with improved funding and simpler access to services. While the shift brings a substantial increase in government investment, it also caps management fees at 10 per cent, a major reduction from the previous 30 per cent some providers charged.
According to Assistive Technology Suppliers Australia, some providers are now pressuring suppliers for commissions or “pay for service” arrangements to make up for lost revenue. Suppliers who refuse risk being excluded from preferred lists, limiting client access to essential mobility and support equipment. Industry leaders warn the practice is unethical and undermines the program’s core principle of client choice.
The shake-up comes as government spending on home care grows rapidly, reaching an estimated $8.8 billion. Meanwhile, some providers are experiencing financial strain, with recent collapses raising concerns about sector stability. Despite the challenges, many older Australians continue to rely on home care to remain independent and safe in their own homes.