The government's aged care shake-up from October 2026 has real implications for older homeowners planning their next move.
The Australian government has confirmed that personal care services under the aged care Support at Home scheme will no longer carry out-of-pocket costs from 1 October 2026. Health Minister Mark Butler announced the changes, funded in part by savings from the National Disability Insurance Scheme. Services including showering assistance, dressing support and continence management are classified as essential and will be covered in full.
For older Australians who own property, these changes have real financial implications. Removing personal care costs makes aging in place a more sustainable option, potentially reshaping decisions about whether to stay at home, downsize or access residential aged care.
What was announced
The Support at Home scheme is the federal government’s program for providing community-based care services to older Australians who want to remain living independently in their own homes. Under previous settings, some personal care services carried out-of-pocket costs that placed real financial pressure on recipients and their families.
The changes announced by Aged Care Minister Sam Rae remove those costs for services the government now classifies as essential for dignity. Showering, dressing and continence care are specifically named. The minister described these as the basics of aging well, not optional extras.
The shift is funded partly by savings identified within the NDIS budget. While disability advocates have raised concerns about those savings, the government has committed to the new aged care arrangements taking effect on 1 October 2026.
Aging in place
For older homeowners, the decision to remain at home, downsize or move into residential care is rarely simple. Cost has historically been a major driver. When personal care services carry daily out-of-pocket expenses, they can accumulate quickly and push people toward residential care sooner than they might otherwise choose.
Removing those costs changes the financial equation. Staying at home becomes more viable for longer. That is good for quality of life and, from a property perspective, it means fewer older homeowners are forced to sell simply because care costs have become unmanageable.
For families managing a parent’s property and finances, these changes also affect longer-term planning. If you are weighing up options, it is worth understanding current property market conditions before making any decision about selling or downsizing a family home.
Home modifications
Choosing to age in place often requires modifying the family home. Bathroom upgrades, ramps, grab rails, stair lifts and wider doorways are common changes that allow people to remain safe and independent for longer.
These modifications can cost anywhere from a few thousand dollars to well over $50,000, depending on the scope of work. For homeowners who have built up equity over many years, that equity can be a practical way to fund the upgrades without disrupting daily life.
Your property options
If you or a family member wants to age in place but the home needs modifications, accessing built-up property equity is one practical option. A home equity loan lets you borrow against the value of your property without having to sell it. The loan funds can go toward renovations, care costs or other needs, while you continue living in your home.
The amount you can access depends on your property’s current value, any existing mortgage balance, your income and the lender’s assessment criteria. Use our loan repayment calculator to get an early sense of what different loan amounts might cost you each month.
Every situation is different. A mortgage broker can review your specific circumstances, explain what products are available and help you decide whether accessing equity is the right move. The goal is a solution that lets you or your family member stay at home comfortably, without putting your property at unnecessary financial risk.
Common questions
Q: What personal care services does the Support at Home scheme cover from October 2026?
From 1 October 2026, the aged care Support at Home scheme will cover showering assistance, dressing support and continence management without out-of-pocket costs. The federal government has classified these as essential services for older Australians living independently at home.
Q: How do these aged care changes affect older homeowners?
By removing out-of-pocket costs for personal care, the changes make it financially easier for older Australians to remain living in their own homes for longer. This may delay the need to sell the family home, which has implications for local housing supply and for family property planning.
Q: Can I use my home equity to fund aged care home modifications?
Yes, in many cases. A home equity loan lets you borrow against the value built up in your property to fund accessibility upgrades like bathroom modifications or ramps. Speak with a mortgage broker to understand how much you could access and what the repayments would look like for your specific situation.