Home Care Package Deficit Persists Despite Funding Commitments

As the Australian aged care sector prepares for the July 2025 transition to the new Support at Home program, the persistent gap between home care demand and availability continues to challenge older Australians seeking to age in place. Despite significant funding announcements and reforms, the waiting list for home care packages has grown again after a brief period of decline, highlighting the ongoing struggle to meet the needs of an aging population.

Current State of Home Care Package Waiting Lists

While the original $850 million funding announcement in late 2020 helped reduce the home care waiting list from 130,000 to 100,000, recent data reveals the list has again reached concerning levels. As of January 31, 2025, government data shows 81,194 older Australians on the National Priority Waiting List6. This represents a significant increase from the low of 28,665 in June 2023, essentially tripling in just 18 months5.

The average wait time across all priorities and package levels has also increased to six months as of January 2025, up from five months just three months earlier6. For medium-priority applicants seeking higher levels of support in April 2025, the situation is even more challenging, with wait times ranging from 6-9 months for Level 1-2 packages to 12-15 months for Level 4 packages13.

According to a recent Anglicare report, the reality may be even worse, with some older Australians waiting more than 15 months for home care8. This lengthy wait has tragic consequences, with First Assistant Secretary Thea Connolly revealing that 3,383 older Australians died waiting for their Home Care Package in 2023-24—nearly 10 people every day5.

Government Response and Future Commitments

In response to the growing crisis, the Albanese Government has committed to releasing 83,000 Home Care Packages in 2025-2026—the largest single-year release to date5. Minister for Aged Care Anika Wells further announced that 107,000 packages will be released over two years (2025-26 and 2026-27) as part of the government’s strategy to reduce wait times5.

The government has established a long-term goal of releasing 300,000 Home Care Packages over 10 years starting in 2025, though critics note this would average only about 24,000 packages annually beyond 2026-275. For the current financial year, an additional 24,100 home care packages are being allocated under a $531 million investment10.

Dr. Johannes Schwabe, who recently led a study published in the Medical Journal of Australia, concluded that despite reforms improving access to home care services, “the rural and remote areas particularly affected by the continuous undersupply of the packages showcases the need for more work to be done in both workforce and services”4.

The New Support at Home Program

From July 1, 2025, the current Home Care Package Program and the Short-Term Restorative Care Programme will be replaced by the new Support at Home program12 17. This transition is part of the new Aged Care Act, which aims to put the rights of older people first and provide improved access to services12.

The new program will feature 8 classification levels with annual budgets ranging from approximately $11,000 to $78,000—a significant increase from the current maximum of $61,440 for a Level 4 Home Care Package19. Recipients will receive budgets based on their assessed needs and can request re-assessment as their care needs change.

The government has forecasted a reduction in average waiting times to 3 months by July 202719. During periods of extended wait times, approved recipients will receive an interim allocation of up to 60% of their Support at Home classification budget while waiting for full funding19.

Concerns About the New Model

Despite these promised improvements, aged care providers have raised concerns about the co-contribution model under the new Support at Home program. For care recipients assessed after September 12, 2024, there are fears they could be asked to pay more than 20% of their weekly income to cover essential services20.

NovaCare chief executive Joseph McCarthy warned that under the new system, many care recipients would be forced to choose which services they can afford. “I just think it’s a step backwards for people, and I worry it’s actually a model which is going to stop people getting the support that they need,” he said20.

Providers fear some home care recipients could face higher risks of health problems and accidents after opting out of services they cannot afford, while others may be prematurely placed into residential aged care20.

Implementation of Royal Commission Recommendations

The Royal Commission into Aged Care Quality and Safety, which released its final report in February 2021, called for a fundamental redesign of the home care system. However, the Inspector-General of Aged Care has reported that the needs-based approach envisaged by the Commission has not been fully implemented9.

In the 2024 Progress Report on the implementation of the Royal Commission’s recommendations, the Inspector-General expressed concern that “Under the new Act proposed in the exposure draft, there is nothing to prevent a continuation of the current situation, where around 50,000 people approved for Home Care Packages are on the waiting list”9.

Corey Irlam, Acting CEO of COTA Australia, has also raised concerns about the accuracy of government wait time estimates. “We now know that the government’s wait time estimates don’t show the full picture, which is very concerning,” he said8.

The Ongoing Challenge of Meeting Demand

The persistent gap between home care demand and supply reflects the challenging reality of Australia’s aging population. Research by ROSA (Registry of Senior Australians) found that despite reforms improving access to basic and intermediate care packages, rates of high-level care packages (level 4) remained largely unchanged4.

Dr. Schwabe noted that “With demand for higher-level care packages expected to grow, more strategic planning and long-term investment will be required to close the gap between supply and demand in the coming years”4.

Opposition health spokeswoman Anne Ruston has criticized the government’s approach, stating: “Wait lists are being intentionally blown out, at the same time as the sector is dealing with a serious workforce crisis”10.

Conclusion

Five years after the government’s $850 million funding announcement was deemed insufficient to address the home care deficit, the situation remains challenging despite increased investment. While the upcoming Support at Home program promises a more responsive system with higher funding caps, questions remain about whether it will adequately address the underlying issues of supply, workforce availability, and timely access.

As Australia approaches the transition to this new model, advocates continue to push for the implementation of the Royal Commission’s recommendation that no one should wait more than 30 days for care8. The persistent gap between home care demand and availability underscores the ongoing need for strategic planning, substantial investment, and systemic reform to ensure older Australians can age with dignity in their own homes.