Growing Older Doesn't Necessarily Mean Leaving Home
For most Australians, there is one overwhelming preference when it comes to ageing.
They want to stay in their own home.
The familiarity of your surroundings, the comfort of your local community, cherished memories, neighbours you know and the independence that comes with living in your own space are all difficult to replace.
The good news is that aged care today is increasingly designed to support exactly that outcome.
With the introduction of the Support at Home Program and a growing focus on ageing in place, many older Australians can now access a range of government-funded services designed to help them remain safe, independent and comfortable at home for longer.
Understanding how aged care at home works, what services are available, how much it costs and when to start planning can make a significant difference to both quality of life and financial outcomes as part of a broader retirement planning strategy.
What Is Aged Care at Home?
Aged care at home refers to government-subsidised aged care services that assist older Australians who need help with everyday tasks but wish to continue living independently.
Rather than moving into residential aged care, eligible individuals can receive support in their own homes.
These services are designed to help people maintain their independence while receiving assistance tailored to their individual needs.
Support can include personal care, daily living support and clinical services, depending on the person’s circumstances and the level of help required.
Why More Australians Are Choosing Home-Based Care
The majority of Australians prefer to remain at home as they age.
Home-based care offers several benefits:
Greater independence
Familiar surroundings
Maintaining community connections
Improved emotional wellbeing
More control over daily routines
Ability to remain close to family and friends
For many people, receiving support at home can delay or even eliminate the need to move into residential aged care.
What Services Can Be Provided at Home?
The level of support varies depending on your circumstances and care needs.
Common services include:
Personal Care
Assistance with:
Showering
Dressing
Grooming
Toileting
Mobility support
Domestic Assistance
Help with:
Cleaning
Laundry
Meal preparation
Shopping
Household tasks
Nursing and Clinical Care
Support from qualified healthcare professionals including help to manage complex care needs at home, as well as:
Wound care
Medication management
Chronic disease management
Health monitoring
Allied Health Services
Access to professionals such as:
Physiotherapists
Occupational therapists
Podiatrists
Dietitians
Speech therapists
Social Support
Services designed to reduce isolation including:
Community activities
Transport assistance
Social visits
Group programs
Home Modifications
Funding may assist with modifications such as:
Handrails
Ramps
Bathroom safety upgrades
Mobility equipment
The New Support at Home Program
Australia’s aged care system is undergoing significant reform.
The Support at Home Program is designed to replace previous home care arrangements and create a more streamlined system focused on individual care needs. Under the reform framework, support services are categorised according to each person’s care needs. It aims to create a more streamlined system, and people will be assigned to 1 of 8 funding classifications based on care requirements.
The objective is to provide:
Simpler access to services
Greater flexibility
Better support for older Australians with higher care needs
Improved transparency around costs and funding
The Commonwealth Home Support Programme is intended for lower-level assistance, while people with greater needs move into broader ongoing support arrangements.
For retirees and their families, understanding these changes has become an important part of retirement and aged care planning. This includes how government funding shapes available services and out-of-pocket costs. Short-term care can also help with recovery after hospital stays or provide respite. Personal care services are planned to be fully funded by the government from 1 October 2026.
How Do You Qualify for Government-Funded Home Care?
Eligibility criteria are generally based on age and care needs.
Most applicants can access care and start the process without a computer or MyGov account by completing an assessment through the aged care system.
Aged care programs require an assessment to determine an individual’s care needs before support is approved.
The assessment considers:
Health conditions
Mobility
Daily living capabilities
Support networks
Safety considerations
This is a comprehensive assessment of support needs, and following assessment, recommendations are made regarding the level of support required.
Example: Mild Support Needs
Margaret is 76 years old and lives independently.
She manages most daily activities but struggles with:
Heavy cleaning
Gardening
Transport to medical appointments
Following assessment, she receives funding for domestic assistance and transport services, allowing her to remain comfortably at home.
Example: Higher Care Needs
John is 84 and recovering from a stroke.
He requires:
Daily personal care
Physiotherapy
Medication management
Mobility assistance
A higher level of support allows him to remain at home rather than entering residential care.
What Does Aged Care at Home Cost?
Aged care costs depend on several key factors, including:
Your level of care
The services required
Your financial circumstances
Government subsidies available
Many services are partly funded by the Australian Government.
Some individuals may also be required to pay fees or a care fee towards the cost of care based on a means assessment of their income and assets, as clients are expected to contribute to some costs of their care based on their financial situation.
These contributions may be capped for daily fees and the means tested care fee, with annual and lifetime caps limiting how much eligible people pay fees over time.
For people on lower means, government assistance and government funding can cover nearly all ongoing care costs, reducing out of pocket costs.
Importantly, costs are often significantly lower than many families initially expect. Understanding future care costs is just as important as understanding everyday retirement expenses.
However, understanding future care costs remains a critical part of retirement planning.
Why Financial Planning Matters
Many retirees focus heavily on accumulating wealth for retirement but overlook actively planning for future care needs, including understanding potential aged care fees rather than only retirement assets. Many Australians underestimate how future care requirements can affect long-term retirement income.
Aged care decisions can affect:
Retirement income
Superannuation balances
Centrelink entitlements
Estate planning outcomes
Family wealth transfers
An income and assets assessment or financial assessment can affect Centrelink outcomes and future costs.
Planning ahead allows families to make informed decisions before a crisis occurs. Providing accurate financial details is important because your financial situation influences government assistance and personal contributions.
Common Mistakes Families Make
Waiting Too Long
Delaying planning is one of the most common mistakes families make when preparing for later life. Many families only begin exploring aged care options after a health event occurs, which can leave a family member or loved one facing rushed aged care decisions.
This often leads to increased stress.
Assuming Residential Care Is Inevitable
Many people can remain at home significantly longer than they expect with appropriate support.
Ignoring Financial Implications
Aged care decisions can have substantial consequences for:
Age Pension eligibility
Cash flow
Investments
Estate planning
Not Seeking Professional Advice
The interaction between aged care rules, Centrelink, taxation, investments and estate planning can be complex.
Professional advice often helps families make more informed decisions.
When Should You Start Planning?
Ideally, aged care planning should begin well before care is required.
For many Australians, discussions should commence during their 60s or early retirement years.
This allows sufficient time to:
Understand available options
Review financial structures
Assess family support arrangements
Consider future housing decisions
Protect retirement income strategies
The earlier planning begins, the more options are typically available.
Home Care Versus Residential Care
There is no single solution that suits everyone.
Home care may be appropriate where:
Independence remains important.
Family support is available.
Care needs can be safely managed at home.
The individual has a suitable care plan and a reliable care provider to deliver services safely at home.
The individual prefers familiar surroundings.
Residential aged care may become appropriate where:
Care needs become highly complex.
Safety risks increase significantly.
Continuous supervision is required.
In some cases, aged care facilities may be more suitable when support at home can no longer manage very high or ongoing care needs.
For many Australians, aged care at home provides an important middle ground that supports independence while still delivering essential care.
The Emotional Benefits of Staying at Home
While financial considerations matter, the emotional benefits of remaining at home should not be underestimated.
Many people experience:
Greater comfort
Improved confidence
Better emotional wellbeing
Stronger social connections
Enhanced quality of life
For this reason alone, exploring home care options early can be worthwhile.
Frequently Asked Questions
What is aged care at home?
Aged care at home refers to government-subsidised aged care services that help older Australians remain living independently in their own homes, with support tailored to care needs at home for daily activities and healthcare needs.
Who is eligible for home care services?
Eligibility is generally based on age and assessed care needs. An aged care assessment is typically required through the aged care system to determine the level of support available, and some fees may also depend on a means assessment.
What services can be provided through home care?
Services may include cleaning, personal care, transport, meal preparation, nursing care, allied health services, home modifications and social support. Home Care Packages can often be used flexibly for approved home services such as meal delivery or home maintenance.
Is home care cheaper than residential aged care?
In many cases, yes. However, home care may cost less than residential care, but people still need to understand aged care fees and government funding arrangements, as costs vary depending on the level of care required and individual financial circumstances. Across the system, aged care fees are commonly grouped into four main types. The basic daily fee is currently $63.82 per day and is reviewed in line with government settings twice a year.
Will I need to contribute towards my care costs?
Possibly. Some individuals may be required to make contributions depending on their income and assets, and Services Australia may use a financial and assets assessment, including an assets assessment, to determine what they need to pay, while government subsidies may cover a significant portion of costs. If someone cannot afford certain fees, they may also be able to access financial hardship assistance.
Can home care help someone with dementia?
Yes. Many home care services can support individuals living with dementia, although higher care needs may eventually require alternative arrangements.
How long can someone stay at home?
This depends on their health, support network and care requirements. Many Australians successfully remain at home for years with appropriate support.
When should I start planning for aged care?
Ideally, planning should begin before care is needed. Early planning often results in better financial outcomes and more choices for both individuals and families.
Does aged care planning affect Centrelink and Age Pension entitlements?
Yes. Certain aged care decisions can impact Age Pension assessments, income testing and asset testing. Professional advice can help minimise unintended consequences.
Should I seek financial advice before making aged care decisions?
In many cases, yes. Aged care decisions often interact with retirement income planning, superannuation, investments, taxation and estate planning. Many retirees also want to understand whether they have sufficient assets and income to support future care costs.
Final Thoughts
Aged care at home has transformed the way many Australians approach ageing.
Rather than viewing aged care as a move into a facility, more people are discovering that they can remain independent, comfortable and connected to their communities while receiving the support they need.
The right aged care provider can help families understand available aged care services, likely aged care costs and what government assistance may apply.
The key is planning early. Early planning allows families to make more informed aged care and retirement decisions with greater confidence.
Understanding available services, likely costs and the impact on your broader financial position can help ensure that future care decisions support both your lifestyle and your long-term financial security.
At Money Path, we help retirees and their families navigate the complexities of aged care, retirement planning, Centrelink, superannuation and wealth management so they can make informed decisions with confidence and peace of mind.
