Government hits pause on Support at Home price caps

With less than six weeks until rollout, the Government has deferred the introduction of Support at Home price caps amid concerns about inflation and provider "price gouging".

The changes show the Government is listening to the sector, which had been calling for a stay on Support at Home price caps, which were due to be rolled out on 1 July 2026.

This morning, Minister for Aged Care and Seniors Sam Rae announced Support at Home price caps would be delayed, allowing time for the Independent Health and Aged Care Pricing Authority to assess prices under the new system before caps are introduced. Support at Home was introduced just over six months ago, when the new Aged Care Act took effect.

Minister for Health, Disability and Ageing Mark Butler said Government concern about global price volatility, due to the war in Iran, are a factor in the deferral decision.

He cautioned price caps can be inflationary, saying the experience of the NDIS shows "set price caps effectively lead to price inflation". Alex Lynch, Director of Aged Care Catholic Health Australia, made this point in The Weekly SOURCE last month.

Butler also said the Government is concerned about providers "price gouging" under Support at Home program.

While there have been reports of excessive prices increases, the Government has done little to explain to the public that higher prices are an essential component of Support at Home. Administration and package management costs, previously a separate charge, have to be factored into prices under the new program simply for operators to maintain margins.

Price caps will be deferred "until we have greater confidence in the stability of the market", Rae said.

Refunds for consumers

Consumer protections will also be increased, with the Government giving the Aged Care Quality and Safety Commission (ACQSC) the power to:

• order Support at Home providers to pay refunds where providers are found to be overcharging,
• take regulatory action against providers that are not issuing monthly statements, and
• report publicly on investigations and enforcement action.

In addition, the Government will publish a new quarterly National Summary of Support at Home Prices showing medians and price ranges, allowing consumers to compare prices. Rae said the Government is encouraging providers to limit price rises to no more than two per year.

The ACQSC will also be monitoring prices for personal care as they are transitioned into the Clinical Care category from 1 October 2026, another reversal of the original reforms, announced last month.

A working group with Ageing Australia, the Older Persons Advocacy Network (OPAN), Council on the Ageing (COTA), and the ACQSC is also being established to create a clear definition of ‘reasonable’ pricing. The group will also look at the home care multi-provider model and develop guidance and support for self-managed home care - indicating these are also areas the Government is concerned about.

Government is listening

The sector has been calling for deferral of Support at Home price caps, so today's announcement is welcome news.

“We are pleased the Government and Minister for Aged Care and Seniors Sam Rae have consulted, listened and made the sensible decision to defer these caps which would have been counterproductive," Alex said.

The move is Government acknowledgement that "the vast majority of providers are not charging excessive or unfair prices in aged care so this was a solution without a problem".

Price caps had the potential to cause "reduced choice, undermined provider viability and lengthened already strained waitlists, particularly in regional areas and for higher-complexity services," Alex said.

Ageing Australia CEO, Tom Symondson, said, "With no independent costing study completed since the Support at Home program commenced in November, any caps set now would not be able to account for the true cost of delivering quality services. We commend the Government for listening to our concerns."

"The decision avoids sweeping confusion for providers and consumers alike," Tom said.