Another local council slams CHSP funding

Another Victorian council has flagged its withdrawal from key aged care services, with Frankston City Council announcing plans to transition non-core Commonwealth Home Support Program (CHSP) services to external providers.

The decision, which takes effect from 30 June 2026, follows months of community consultation with almost 1,000 residents – many of whom expressed a desire for continuity in council-delivered home care.

Despite that feedback, Mayor Kris Bolam said the current funding model has become unsustainable.

“The reality is that the current funding model no longer covers the true cost of delivering these services, leaving local councils to fill the gap,” he said. “For Frankston, that means ratepayers are funding a growing shortfall each year – a position that’s not financially responsible or sustainable over the long term.”

Under the new shared delivery model, the council will retain control of core programs such as Meals on Wheels, Group Social Support (outings) and transport services, enabling it to clear its Meals on Wheels waiting list and expand social transport for seniors.

The move will result in some job losses, though the council says affected staff may be redeployed internally. Frankston City reported a $15.9 million operating surplus in FY25, down from $32.6 million the previous year.

The change adds to a wave of council exits from CHSP across Victoria, where fewer than one in four local governments still deliver home care directly.

Many cite the unsustainable gap between CHSP funding and service costs, compounded by uncertainty ahead of the Support at Home transition from 1 July 2027.

CHSP currently supports more than 800,000 older Australians with low-level care, transport and social services – a lifeline increasingly under pressure as both local councils and community providers question the program’s long-term viability.