Navigating every aspect of aged care can feel overwhelming, especially when it comes to funding changes. One term that is currently raising questions is the No Worse Off principle in aged care. While the phrase sounds reassuring, many older Australians and their families are left wondering what it really means in practice and how it applies to their personal situation.
In this article, we’ll break down what the No Worse Off principle means, who it applies to, what it covers (and doesn’t) and how you can make the most of it. Our goal is to make these changes easier to understand so you can feel confident about your or your loved ones’ care and funding options.
The No Worse Off principle was introduced as part of the Australian Government’s reforms to the aged care system. It promises that people receiving aged care under older funding arrangements won’t be disadvantaged financially if they transition to a newer system.
This is especially relevant for clients moving between different funding models, such as those from older Home Care Package (HCP) funding systems to the Support at Home Program, which is gradually replacing them.
Essentially, with the No Worse Off principle in aged care, the government has committed that when changes are made to how home care or aged care is funded, existing clients won’t be left paying more out of pocket or receiving less support.
The No Worse Off principle applies to:
Importantly, it applies to individuals who choose to transition as well as those who are moved across due to policy changes. This principle does not currently apply to all CHSP clients, as the Commonwealth Home Support Programme is scheduled to transition no earlier than 1 July 2027.
The principle protects both service access and financial contribution. In other words:
This gives families peace of mind that they won’t be penalised for something out of their control, such as the introduction of a new government program. That said, the government may assess your current support needs to keep your funding level a match. If your needs have changed, your new arrangement may be adjusted, but that’s separate from the principle itself.
It’s important to note that No Worse Off doesn’t necessarily guarantee an identical package or supplier setup. For example:
However, the value of your support and the cost you contribute should stay comparable or even improve.
To make the most of the No Worse Off principle, it helps to:
The No Worse Off principle in aged care is a safeguard, but navigating funding changes still comes with paperwork, comparisons and potential confusion. That’s why it helps to work with a provider who puts your independence and clarity first. Through the Support at Home program, Homecare My Way simplifies how you manage your care funding with full control and flexibility to direct your services in the way that suits you best.
With self-management options, you can choose your own suppliers, manage your own budget and stay actively involved in every decision about your care. Our model helps you stay confident, informed and supported at every stage of your care journey.
Call 1300 422 123 today or learn how self-management works to make the most of your home care through Homecare My Way. We’ll help you every step of the way.
Support changing cognitive needs with care and confidence. Discover practical ways to manage cognitive decline and stay independent with Homecare My Way’s personalised support.
Australia’s new Support at Home program replaces Home Care Packages in 2025. Learn what’s changing, what stays the same, and how to plan with confidence.
The new Support at Home program introduces updated aged care terms and clearer language. Learn what key changes mean and how they’ll affect your care journey.
