Aged Care Funding and Costs Explained

You have questions about how aged care is funded and what it might cost. That is completely normal. We are here to make it clearer, simpler, and a whole lot less stressful.

Aged care costs can feel overwhelming. They do not have to be.

If you are looking into support at home for yourself or someone you love, you have probably come across a lot of confusing information. Government websites, acronyms, and changing rules. It is a lot to take in.

The Australian Government funds most of the cost of your care. Depending on your situation, you may only need to contribute a small amount towards certain services. And some services are fully covered at no cost to you.

We will break it all down for you, and if anything still feels unclear after reading, our team is just a phone call away.

How aged care funding works

The Australian Government funds support at home services to help older Australians continue living independently in their own homes. Since 1 November 2025, the main program for in-home aged care is the Support at Home program.

The amount of government funding you receive depends on your individual care needs. After an assessment through My Aged Care, you will be assigned a funding classification that reflects the level of support you need.

Eight funding classifications

Support at Home has eight ongoing funding classifications, replacing the previous four Home Care Package levels. Each classification provides a yearly budget to use on the services that matter most to you.

Figures are indexed as at 1 November 2025. Budgets are allocated quarterly and 10% is set aside for care management and coordination.

Your classification is determined by an assessment through My Aged Care, not by Suncare. It is based on your individual care needs, goals, and circumstances. The higher your needs, the higher your classification and budget.

What you may pay

Under the Support at Home program, there is no basic daily fee. Instead, you contribute a percentage of the cost of certain services based on your income and assets. How much you pay depends on the type of service and your financial situation.

The good news? Not all services require a contribution. Clinical care is fully funded by the government for everyone, regardless of income.

Three service categories, three different contribution levels

Every service falls into one of three categories. Each has a different contribution arrangement:

Part pensioners and Commonwealth Seniors Health Card holders pay rates between these amounts based on their income and assets assessment. Your exact contribution rates are determined by Services Australia.

What this means for you

• If you receive a full Age Pension, you will pay little or nothing for most services.
• Nursing and most clinical care services will not attract a customer contribution , no matter your financial situation.
• Everyday tasks like cleaning and gardening attract the highest contributions, while personal care and social support cost less.
• You only pay for the services you actually receive, not a flat daily rate.

A lifetime cap protects you

There is a lifetime cap of $135,318.69 (as at November 2025, indexed twice yearly) on the total amount you can be asked to contribute across all aged care services. Once you reach this cap, your contributions drop to zero. This cap is combined across both support at home and residential aged care.

If you were already receiving a Home Care Package on or before 12 September 2024, you are protected by the government's 'no worse off' principle. You will pay the same or less under Support at Home than you did under the old system.

What your funding can cover

Your Support at Home budget is flexible. You and your Suncare coordinator work together to build a personalised care plan that reflects how you want to live. Depending on your needs, your funding can cover services like:

• Nursing and clinical care: wound care, medication management, health monitoring, post-hospital support
• Allied health: physiotherapy, occupational therapy, podiatry, dietetics, speech pathology
• Personal care: help with showering, dressing, grooming, and mobility
• Help around the home: cleaning, laundry, gardening, minor home maintenance
• Meals: meal preparation at home or delivered meals
• Transport: getting to appointments, supermarket or local shops
• Social support: companionship, group activities, community connection, social outings
• Respite care: giving your carer a well-earned break while you are looked after
• Equipment and home modifications: grab rails, ramps, mobility aids (funded separately through the AT-HM scheme, up to $15,000)

Your care plan is not set in stone. As your needs change, your plan can be adjusted with support from your Suncare Care Partner

Here’s a simple example of how costs work

Margaret is 78 and lives alone on the Sunshine Coast. She receives a full Age Pension and has been assessed for Support at Home Classification 2, which gives her $16,034 per year ($4,009 per quarter).

After the 10% care management set-aside ($401 per quarter), Margaret has around $3,608 each quarter to spend on the services she needs.

In this example, Margaret pays approximately $78.10 per fortnight out of her own pocket for a solid mix of support.

The government covers the rest through her funding budget. Her nursing care costs nothing at all.

This example is for illustration purposes only. Individual costs vary based on your provider's pricing, your contribution rates, and your care plan. Suncare can provide a personalised quote.

Why costs can vary from person to person

Aged care costs are not one-size-fits-all. What you pay depends on several factors:

• Your funding classification: this is based on your assessed care needs, not your finances
• Your income and assets: Services Australia determines your contribution rates through a means assessment
• The types of services you use: clinical care is free, while everyday living services attract higher contributions
• Your provider's pricing: until government price caps take effect from 1 July 2026, providers set their own rates
• When services are delivered: weekend, evening, and public holiday services typically cost more

This is why getting a personalised breakdown matters. Our team can sit down with you and work through what your care might look like, and what it might cost.

How Suncare approaches pricing

We know that navigating aged care costs can feel uncertain. That is why we are upfront about our pricing from the start.

Suncare publishes our service rates so you can see exactly what each hour of support costs before you commit. There are no hidden charges. All our prices are all-inclusive, meaning the rate you see covers the full cost of delivering the service, including administration, travel, training, and support.

As a not-for-profit, we are focused on making your funding go further. Our care management fee is capped at 10% of your budget (as required under the program), and we work with you to make sure your care plan delivers the most value.

Not yet receiving government funding? Suncare also offers fee-for-service options if you are waiting for your assessment or need a little extra help beyond what your budget covers. Our fee-for-service rates are aligned with our Support at Home pricing.

View our pricing

How to access aged care funding

If you do not already have government funding, here is how to get started:

1. Contact My Aged Care on 1800 200 422 or visit myagedcare.gov.au to register and apply for an assessment.
2. Complete your assessment. An assessor will visit you at home to understand your care needs. This determines your funding classification.
3. Have your income and assets assessed. Services Australia will work out your contribution rates. If you already receive an Age Pension, they may already have what they need.
4. Choose your provider. Once approved, you choose who delivers your care. You can choose Suncare at any stage, and we will help you every step of the way.
5. Start receiving services. Together, we will build a personalised care plan and budget that works for you.

Already have Support at Home funding with another provider? You can switch to Suncare at any time. We will help make the move easy and stress-free.

Worried about affording care?

If you are facing financial difficulty, the Australian Government offers hardship assistance. If you are eligible, the government may cover some or all of your aged care costs.

You do not need to figure this out on your own. Suncare can help you understand your options and point you in the right direction. You can also access free financial information through Services Australia's Financial Information Service or Aged Care Specialist Officers.

The important thing to know is this: you will not miss out on the care you need because of your financial situation.

We are here to help you understand your options

Aged care funding does not have to be confusing. Our friendly team is here to answer your questions, walk you through your options, and help you feel confident about what comes next.

Whether you are just starting to explore aged care, waiting for an assessment, or ready to choose a provider, we are ready when you are. You can call us on 1800 786 227; our Customer Contact Team is available to chat about your situation and help you get started.

Prefer to reach out online? Fill in our contact form and we will get back to you.