The State of the CHSP

On 20 August 2026, the Government confirmed that the Commonwealth Home Support Program (CHSP) will remain separate from Support at Home, with contracts extended to 30 June 2029.

The decision removes immediate uncertainty about the proposed transition, but significant issues remain unresolved. No additional growth funding has been announced, client contributions remain subject to consultation, and the Auditor-General found that the Department cannot demonstrate whether CHSP is meeting demand or achieving its objectives.

This Insight examines the current state of CHSP and what providers should prepare for over the next three years.

Key events

The cost of the extension has been deferred to the Mid-Year Economic and Fiscal Outlook (MYEFO). No additional growth funding has been provided to address waitlists or unmet demand, while client contribution arrangements, including potential alignment with Support at Home, remain unresolved.

Program scale and expenditure

In 2024–25, CHSP supported 838,694 people, more than half of everyone using aged care, for $3.3b, or approximately 8% of Commonwealth aged care expenditure.

At around $3,900 per client, it costs a fraction of a Home Care Package ($24,516) or residential aged care bed ($120,467), although these programs have different objectives.

CHSP client numbers have remained broadly unchanged since 2018–19, while the population aged 65 and over increased by 883,891.

Between 2020–21 and 2024–25, nominal expenditure increased by:

• CHSP: 21%
• Residential aged care: 39%
• Home Care Packages: 107%

The CHSP Alliance estimates that annual program funding is approximately $1.4b lower than if CHSP funding had increased at the average rate of the other programs.

Distribution of provider funding

Pride Aged Living's analysis of the DHDA 2024–25 funding list indicates that funding is concentrated among a relatively small proportion of providers. The largest 100 of 1,304 providers receive 58.9% of the $3.31b in funding. The median provider receives $660k, compared with a mean of $2.53m.

Source: Pride Aged Living analysis of DHDA, CHSP Contracted Providers and Funding, April 2025.

Registration, reporting and assurance costs under the new Aged Care Act are largely fixed, placing proportionately greater pressure on smaller providers, including regional services.

The composition of the provider base is also changing: the number of local government providers declined from 214 to 148 over six years, and further council exits are scheduled for June 2027.

Findings of the Auditor-General

The Australian National Audit Office (ANAO) found no method for measuring unmet demand, no evaluation of CHSP since its commencement and only one output KPI. As at 1 November 2025, more than 100,000 clients had not been assessed, contrary to the new Act's requirements.

Demand exceeds available supply, yet contracted capacity remains underutilised.At 30 June 2025, 83% of contracted outputs had been delivered, while between 78% and 86% of allocated funds had been spent since February 2024.

Respite services are persistently underspent, while domestic assistance exceeds allocations. Reviews of providers that did not meet contracted delivery levels returned $74.5m over three years.

Although 65% of clients reported satisfaction, 51% were unable to access a required service at some point, and only 55% of providers considered the CHSP sustainable.

Policy and funding pressures

Of the Senate's eight recommendations, only one has been fully adopted: retaining CHSP as a separate, block-funded program.

The CHSP Alliance is seeking an additional $700m at MYEFO 2026, with annual funding rising to $5.5–6.0b. It also wants the CHSP to retain its own co-payment policy rather than adopt means-testing aligned with Support at Home.

Support at Home is also experiencing capacity pressures. At 30 June 2026, the queue reached 106,977 people, up 13% over six months. Many people awaiting a place rely on the CHSP in the interim.

Client contributions are likely to be a key issue in consultation. Support at Home contributions are mandatory and means-tested, whereas CHSP fees are set by providers and can be waived. Alignment could increase costs for some CHSP clients and affect demand.

Priorities for the next six months

Providers should model the full cost per unit by service type and region; review delivery against contracted outputs monthly; confirm that each client has the required assessment; test client contribution scenarios; strengthen DEX and outcome reporting; and participate in consultation directly or through relevant peak bodies.

Key developments to watch

DHDA consultation on the future of the CHSP is expected in late 2026, followed by MYEFO in December, the Government's response to the Senate report and the May 2027 Budget. Decisions on contributions and program design beyond 2029 are expected in 2027–28.

Indicators of program growth would include a funding allocation at MYEFO and publication of a demand model. Means-tested contributions and further provider exits would signal increased implementation risk.

Looking ahead

The extension provides certainty to June 2029, but does not resolve CHSP's longer-term sustainability. Decisions over the next 18 months will influence the program's funding, design and operation beyond 2029.

How Pride Aged Living can help

Pride Aged Living has been assisting providers with the performance of their CHSP programs.

If you'd like to discuss your current CHSP performance or how upcoming changes may affect your organisation, we'd be happy to have a conversation.

Contact us