Until 27 February 2017, CDC funding for home care is provided to places as allocated to Approved Providers via the Aged Care Approval Rounds (ACAR).

The Government has passed the Aged Care Legislation Amendment (Increasing Consumer Choice) Act 2016 (Cth).

The reforms will be implemented in two stages.

• Stage 1 – From 27 February 2017, home care will not be subject to ACAR. The model will change from the funding and allocation of places to funding which will follow the consumer. This will allow the consumer to choose a provider that is suited to them and to direct the funding to that provider. The consumer will also be able to change their provider if they wish, including if they move to another area to live.
• Stage 2 – will integrate the Home Care Packages Programme and the Commonwealth Home Support Programme into a single care at home programme. This will simplify the way that services are delivered and funded. Stage 2 is intended to be introduced from July 2018.

       The Stage 1 changes are in three main areas:

1. funding for a home care package will follow the consumer;

2. there will be a consistent national approach to prioritising access to home care packages through My Aged Care (the Government gateway); and

3. to reduce red tape under the Aged Care Amendment (Red Tape Reduction in Places Management) Act 2016, which commenced on 11 February 2016.

The system will remain only open to Approved Providers. Under section 46-1 an Approved Provider is eligible for a home care subsidy if the following conditions are met:

1. the Approved Provider must be approved under Part 2.1 of the Aged Care Act 1997 (Cth) (the Act) as a provider of home care;

2. on the day the services are provided there is in force a home care agreement under which a care recipient approved under Part 2.3 of the Act in respect of home care is to be provided a home care by the Approved Provider through a home care service;

3. the home care service is a notified home care service (which is a new concept);

4. the care recipient is a prioritised home care recipient;

5. on the relevant day the home care provided is required under the home care agreement; and

6. the Approved Provider has agreed in the claim relating to those services on that day to deal with the care recipient’s unspent home care amount in accordance with the User Rights Principles.

The concept of notified home care service is a requirement of the approved provider to notify the department of the service, the address for the service and other information as may be included in the Approved Provider Principles (likely to be included in the 2017 principles).