Quarterly Budgets for Support at Home Explained

When the Support at Home Program replaced the Home Care Packages and Short-Term Restorative Care systems on November 1st, 2025, you’ll have noticed some changes. One of the most important is the new quarterly budget. It replaces your previous annual funding budget for services, which you received as a monthly allowance.

 

At Aunty Grace we understand how this change might be confusing to clients who were used to yearly funding. Where you once had 12 months to plan your spending budget, you now have 3 months. This is a big adjustment for many of you, particularly as there are also changes to how unused funds carry forward or roll over.

 

This guide will demystify the new quarterly funding system by providing a clear, practical explanation of how the new funding approach works. We’ll run you through the changes, what they mean to you, and how you can make them work effectively for you.

 

Why Quarterly Budgets Exist

 

One question we’re hearing a lot is “why did the government introduce quarterly budgets?”

 

The answer – they were introduced to make the system more responsive and flexible, and in direct response to the Aged Care Royal Commission recommendations which called for more transparent, timely, and person-centred funding.

 

For example, under the yearly model, people often faced month-long waits for adjustments while unspent funds could sit idle until the next reconciliation.

 

Quarterly budgets can:

 

• Provide flexibility: as funding refreshes every three months, changes in your care needs can be addressed sooner.

 

• Allow quicker responses: if your health changes or you need new services, budgeting becomes much more manageable and there are other avenues for extra funding should you need them, for example, The Short Term Restorative Care Pathway.

 

• Reduce administrative lag: providers and clients can now review care plans more often and avoid large end-of-year reconciliations.

 

How Your Quarterly Budget Is Set

 

Under the new quarterly budget funding, there are eight Support at Home classifications. Each one reflects a particular level of care as per the table below.

 

 

Your funding level is determined based on where your care requirements fall in this classification. As government-funded money, it’s held on your behalf and can only be used for approved services. The amount (budget) is indexed in July each year, and adjusted to keep pace with costs.

 

Every classification is allocated a specific quarterly budget, 10% of which is automatically set aside for Care Management, leaving 90% for service delivery. The 10% applies to all providers across the board, and covers plan reviews, coordination, and communication with providers.

 

 

NB: Figures are rounded for simplicity

 

What Happens At The End Of A Quarter

 

At the end of each quarter, a portion of your unspent service delivery funding will roll forward to the next quarter. However, the rollover amount is limited to either 10% of your total allocated budget or $1000, whichever is greater.

 

For example: say your quarterly budget is $5,000 and you spend $4,000, including your total $500 Care Management component. The remaining balance of your total budget ($1,000) rolls into the next quarter. But - if you only spend $3500 (including the $500 Care component), only $1000 of the remaining $1500 rolls over. The extra $500 drops off.

 

Important Clarification

 

Each quarter, the 10% Care Management portion of your budget resets to the full allocation. So, using our $5000 example above  – your care management portion is 10%, or $500. Care Management funds are allocated to the Provider’s Care Management pool and are used by the provider for care management activities across all their clients.

 

Also - if you have any pre November 2025 unspent Home Care Package funds, you’ll still be able to access these separately. They do not expire and are used for services after the quarterly budget has been exhausted. Historical Home Care Package funds may also be used for assistive technology or Home Modifications.

 

The 10%/$1000 Rule

 

The 10%/$1000 rule is designed to keep unused funds circulating in the system so more people benefit rather than allowing large idle balances to accumulate in individual accounts. So, remember to plan your spending so you’re not caught out with large unused amounts at the end of the quarter. The money has been allocated to support you living safely and comfortably at home so plan to use it. 

 

It’s also important to note that rollover funds don’t instantly appear in your account on the 1st day of each quarter. Providers need time to finalise and lodge their claims first, and these can take up to 60 days..

 

What Doesn’t Roll Over

 

Not all funding follows the quarterly rollover rules. Whilst your ongoing service delivery funds (described above) do roll over up to a cap, there are also separate short-term programs that don’t. This includes: Assistive Technology and Home Modifications (AT‑HM) funding: this has its own 12-month funding window. This gives you a year to plan and use these funds but at the end of that period, any unused balance is returned to the system.

 

• Restorative Care and End of Life Pathways: these are episode-based funding programs that typically last 6 – 16 weeks. They cover you for specific recovery or support periods, and aren’t part of the quarterly funding cycle. Once again, any unused funds at the end of that window are returned to the system.

 

Making The Most Of Your Funding

 

There are many ways to make the most of your quarterly budget.

 

Plan your quarter early

 

Regular services – cleaning, shopping, physio, garden maintenance etc – should be scheduled so they’re delivered and paid for within the relevant quarter.

 

Use your Care Partner strategically

 

The 10% Care Management component of your quarterly budget doesn’t roll over from quarter to quarter. This component is meant to help keep your care plan aligned with your care needs. Don’t let it sit idle. Use it to plan your reviews, co-ordinate with your Care Partner, and work with allied health care partners.

 

Time larger needs with funding windows

 

Big-ticket items like equipment or home modifications usually need assessing and approval first. As these can take some time to organise, get the process started as early as possible in the quarter. That way, all necessary steps to access the specific funding for these can occur and you’ll avoid delays, losing access to funds, or having to wait for approval and allocation.

 

Watch your statements

 

Budgets can disappear quickly if you’re not keeping an eye on them, especially if you’re used to larger annual budgets. Get into the habit of reviewing your statements at least halfway through the quarter so you stay on track and don’t over or underspend.

 

Get your Care Partner to send you regular summaries - Aunty Grace sends summaries monthly or upon request as well as a weekly schedule with associated costs.

 

Ask for reassessment

 

If you find you’re constantly overspending your budget, your classification might not be right for your needs. You can request a reassessment at any time to increase your budget so it better fits your requirements. Just talk to your Care Partner.

 

Keep lines of communication open

 

Care needs can change quickly. Allowing redundant services to continue when they’re no longer needed can drain funds you might require for other services. So keep in touch with your provider, keep an eye on your various services, and make small adjustments early.

 

For example, if you don’t need as much cleaning support, reduce the service straight away. Add allied health services you do need as and when you need them. Don't wait until the end of the quarter to make the adjustments because you might be wasting money you’ll suddenly need. Or are under utilising your funding to your detriment.

 

We're not suggesting you spend for the sake of spending. Rather, aim to use your funding in a steady, thoughtful way that keeps you living safely and independently at home.

 

Common Misunderstandings

 

Q - Can I save up for a big purchase?

 

A -Yes but only within the $1,000 / 10% rollover rule. Excess funds above the rollover threshold are returned to the system.

 

Q -Will I lose my services if I underspend and will my classification be adjusted?

 

A -No. Your services will continue, but unspent funds above the cap (10% / $1000) reset.

 

Level adjustments only happen with a formal reassessment.

 

Q - If I don’t use my Care Management allocation, can it be used as part of my service delivery funds?

 

A - No. Your 10% Care Management portion is fixed and is allocated to the provider’s Care Management pool. They don’t convert into service delivery.

 

Q - Does everything reset on 1 July?

 

A - No. Only annual indexation changes then. Your budget refreshes every quarter.

 

Q - Does indexation mean my budget increases enough to cover all rising costs?

 

A - Not always. It will adjust allocations annually but service prices may still rise at a different rate to the indexation amount.

 

Q - Will unused funds build up across the year?

 

A -No. The rollover is quarter‑to‑quarter only. There’s no annual accumulation beyond the cap. In other words, excess funds rolled over from Q1 to Q2 must be used in Q2 etc.

 

Q - Can I transfer my budget to another person?

 

A - No. All funding is tied to an individual care classification and can’t be shared or gifted to anyone else.

 

Q - Can I use my budget for anything I choose?

 

A - No. The funds are held by the government and can only be spent on approved services and support.

 

Q - Do invoices always match the quarter they’re issued in?

 

A - Not always. If a service provider invoices late, the service date (not the invoice date) determines which quarter the cost falls into. So you may find you’re paying for services delivered in the previous quarter.

 

How Aunty Grace Helps Clients Manage Quarterly Budgets

 

Aunty Grace is one of Victoria’s leading aged care providers. We are proud of our track record for going above and beyond just delivering great services.

 

As your Care Partner, we’re proactively committed to helping you make the most of the new Support at Home system.

 

The quarterly budget is the core of this system and we work tirelessly to ensure it benefits you exactly the way it’s supposed to. We take a proactive role that goes beyond just delivering services. We manage the whole financial rhythm and delivery of your care.

 

To this end, we work closely with you and your family to proactively:

 

• Help you make the most of your Care Management allocation by using it for planning, reviews, and coordination with allied health care professionals

 

• Keep track of your spending so you don’t go over budget

 

• Carefully review your budget to ensure you’re getting the best out of your care each quarter

 

• Schedule services well ahead of cut-off dates so they are delivered and invoiced within the correct quarter

 

With our help, your funding works harder for you. We make sure your Care Plan always directly matches your needs.

 

With Aunty Grace, you don’t just receive services. You gain a partner who ensures your funding is always working to support your independence.

 

In Closing

 

Clients used to the old Care Packages system and its annual budgets might feel a little lost with the new quarterly budget program. However, they're built around more flexibility and better funding control.

 

Quarterly budgets give you more control over your funding. Quickly adjust support services to match your current needs. Reduce those you no longer require or add new ones as needed. The aim is to prevent money being tied up in unnecessary services, and free up funding for services that do matter.

 

With the right planning, and with Aunty Grace's support, every dollar of your care budget can work better for you.