Beyond the Price Hike: Navigating Your Pricing Strategy Under Support at Home

The upcoming Support at Home reforms are reshaping the financial landscape for Australian home care providers. A key change is the capping of care management fees at 10% and the removal of package management fees altogether.

As a result, many providers will have to, quite rightly, adjust their pricing. For some, this has raised concerns about how care recipients will perceive this. However, as Grant Corderoy notes in his July 3, 2025 Community Care Review article on rising Support at Home prices, the framing needs to make clear that any price increase stems from government policy changes, not providers arbitrarily raising prices.

This is a crucial point to communicate. The actual cost to the care recipient may remain similar, but the way that cost is funded is changing. Your pricing now needs to be holistic, factoring in all costs—including your overhead, compliance, and an investable return—to ensure the ongoing sustainability of your business.

To get your pricing right under this new model, consider the following:

• Holistic Costing: No longer can you rely on separate package management fees. Your service prices must now absorb these costs. This requires a thorough look at your true cost to provide services.
• Segment Your Services: Remember, some services—like clinical care—are fully funded by the government, while others are not. Your pricing structure should reflect this, and you should be mindful of how this might influence the services your care recipients choose.
• Transparent Communication: Be proactive and transparent with your clients. Explain that these changes are a direct result of government policy aimed at creating more clarity and efficiency in the sector. Show them how this new structure benefits them, for example, by directly linking a higher proportion of their funds to direct care services.

Ultimately, a profitable and sustainable home care business requires a sophisticated approach to pricing. Getting this right is the first and most critical step to thriving in the Support at Home environment.

Call Debra on 1300 664 130 to discuss how you can improve your onboarding efficiency with Care Collaborator.