Support at Home price caps delayed

According to the Minister for Aged Care, Sam Rae, price caps for the new Support at Home system have been delayed indefinitely. In doing so, he announced several interim measures to protect older people from price gouging.

Price caps were meant to take effect from 1 July 2026. But just weeks before that deadline, the Government has confirmed they are now on hold, indefinitely, due to concerns about viability and system gaming. 

They were designed to act as a safety net. Under the model, the Federal Government would set a maximum price for each Support at Home service, e.g., nursing care, and providers could not charge above that level, with the expectation that providers would “compete” on price.  

The Government now says it will delay implementation until market conditions stabilise, with no new date set. 

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Why the delay? 

According to the Minister, the concern is that price caps must be set at the right level – high enough to keep providers viable, but low enough to protect consumers. 

The Government points to ongoing cost pressures across the sector, arguing that setting caps in a volatile environment could do more harm than good. If caps are set too low, services could become unsustainable; too high, and they would fail to protect older Australians. 

Instead, officials say they need more data on how pricing is evolving under Support at Home before finalising the caps. 

This cautious approach may be understandable from a policy perspective, but it leaves older Australians facing continued uncertainty. 

For now, the system remains one where providers set their own prices. 

That means the level of protection against high or inconsistent pricing depends less on firm rules, and more on oversight and transparency. 

Without caps, there is no hard ceiling on what can be charged – only a requirement that prices be “reasonable” and reflect the cost of delivering care. 

For many consumers, that can be difficult to judge.

New protections

To fill the gap left by delayed caps, the Government is introducing several consumer protections. 

These include stronger enforcement powers for the Aged Care Quality and Safety Commission, which will be able to order refunds where providers are found to be overcharging and take action against those who fail to meet their obligations, such as issuing monthly statements. 

There will also be a new quarterly National Summary of Support at Home Prices, showing the median and range of charges across providers. The aim is to give older people and their families a clearer sense of whether they are paying more than they should. 

Other measures include closer monitoring of personal care pricing, encouraging providers to limit price increases. 

While these are important steps, they are not a substitute for price caps – or, even better, price setting. 

Price caps highlight a broader challenge for publicly funded services: ensuring that Support at Home services are delivered efficiently and cost effectively while also ensuring the financial viability of the many providers that deliver these services. 

For older Australians, the issue is immediate. Many are already navigating complex service agreements, unfamiliar pricing structures, and rising costs – all while trying to remain independent at home. 

Without price caps, the responsibility to identify and challenge unfair pricing falls largely on the individual and their families and carers.  

While that makes transparency and clear information critical, it places a heavy burden on consumers and their families to police the home care “market”.  

This isn’t like regular consumer markets, like shopping for soup at the supermarket, this is the care of older people. Older people (and taxpayers) shouldn’t pay any more than it costs to deliver that care. 

National Seniors Australia (NSA) surveys show that financial transparency of providers is consistently one of the highest concerns of seniors – even among those who don’t currently face aged care. That is why NSA was supportive of the introduction of price caps, as this would help lessen the burden on consumers.  

The Government has signaled that price caps will not be abandoned, but delayed until conditions are right. 

Without a clear timeline, many older Australians will be left asking: when will the promised protections finally arrive?