Understanding The “No Worse Off” Principle

What is the No Worse Off principle in aged care?

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.

Who does the No Worse Off principle in aged care apply to?

The No Worse Off principle applies to:

• Clients already receiving a Home Care Package
• Clients assessed as eligible for a package by the government on or before 12 September 2024
• Clients transitioning between funding levels within the same system

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.

What the No Worse Off principle in aged care covers

The principle protects both service access and financial contribution. In other words:

• You shouldn’t lose access to the services you were receiving (cleaning, personal care, meal prep, etc.) unless your care needs change.
• You shouldn’t be asked to pay more out of pocket than you would have under the previous funding structure.

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.

What the No Worse Off principle in aged care doesn’t cover

It’s important to note that No Worse Off doesn’t necessarily guarantee an identical package or supplier setup. For example:

• You might need to reallocate services slightly under the new program
• Your chosen supplier may need to meet updated eligibility criteria
• Your funds might be administered differently (e.g., through a new provider or portal)

However, the value of your support and the cost you contribute should stay comparable or even improve.

What you can do to stay protected

To make the most of the No Worse Off principle, it helps to:

• Understand your current home care funding: This includes your government subsidy and any income-tested care fees.
• Keep records of the services you’re receiving: Having a clear list of support items and hours can help when transitioning.
• Ask questions: If you’re moving to a new funding model, speak up. Ask if the No Worse Off principle in aged care applies and how it’s being calculated for your specific case.
• Review agreements: Review new care agreements carefully before signing anything. Ensure your funding and support levels are maintained.

Make transitions easier with the support of Homecare My Way

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.