Tuesday, 21 July 2026

Another VIC Council joins exodus from home care

Caroline Egan  profile image
by Caroline Egan
Another VIC Council joins exodus from home care
Northern Grampians Shire mayor Karen Hyslop (pictured right)
Key points

  • Exit confirmed: Northern Grampians Shire Council plans to cease home care
  • Financial pressure: Council cited rising costs, tighter funding and increasing compliance
  • Growing trend: More than 100 local councils have exited
  • Policy questioned: Senate Inquiry recommends retaining CHSP

A formal review has prompted yet another Victorian council to cease the delivery of home care services.

Northern Grampians Shire Council Mayor Karen Hyslop said the decision has been made in the face of significant financial pressures on Council, citing the aged care reforms that have placed increased compliance requirements on operators.

At a closed meeting on 7 July, the Council decided it would exit home care, recommending its services be transferred to East Wimmera Health Service and Grampians Community Health.

Currently, about 30 council staff provide Commonwealth Home Support Program (CHSP) services to more than 300 clients.

Once complete, Northern Grampians Shire Council will cease delivering services effective January 2027, though the exact date is yet to be decided. 

“Council is focused on making long-term financially sustainable decisions that ensure we can efficiently provide the services we are legislated to deliver,” the Mayor said.

Trusted provider

Earlier this year, the Council announced a formal review of its aged care services ahead of the planned integration of the CHSP into Support at Home.

The integration would shift the CHSP from being a block funded program to a fee-for-service model.  

The formal review found the community “unambiguously” wanted Council to continue delivering services, however could tolerate an exit if services were transferred to a trusted local organisation. 

The Mayor said the proposed reforms to the CHSP would give older Australians more choice, but would introduce considerable financial risk to Council given the departure from the certainty of block funding.  

Exodus from home care

Many other Victorian Councils have arrived at the same conclusion. 

Last month alone, The Weekly SOURCE reported that three Councils – Glen Eira City Council, City of Monash, and Mornington Peninsula Shire, all in Victoria – would exit home care.

In recent years, more than 100 local councils have withdrawn from home care.

“Ours is not the only council re-evaluating its service delivery in light of the aged care reforms,” Mayor Hyslop said. “Several other councils have also transitioned aged care services to alternative providers as a result.”

“We will continue to work closely with affected staff, clients and their families during the transition period.”

The Council will advise the Department of Health, Disability and Ageing of their decision, and the Department will then finalise the new service providers.  

Inquiry recommends CHSP retention

Senate Inquiry into the transition of the CHSP into Support at Home recommended the block-funded program be retained and not transitioned into Support at Home.

The report included a quote from the Inspector-General of Aged Care Natalie Siegel-Brown, who said: “Providers, workers and consumers are facing profound uncertainty about the transition of CHSP into Support at Home.”

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