What the 2026 Federal Budget Means for Older Australians 

The Federal Government handed down the 2026–27 Budget last night, and for older Australians receiving home care, there is a lot to take in. As one of Australia’s largest home care providers, Dovida has been across the detail as it emerged, and we want to make sure the people we support and their families understand what is changing, and what it means for them. 

Here is a clear overview of the key home care announcements. 

Personal care will become free under Support at Home 

The most significant change for people currently receiving home care under the Support at Home program is this: from 1 October 2026, personal care services including showering, dressing, and continence management will become fully funded by the Government. Eligible participants will no longer make out-of-pocket contributions for these services. 

The Government has committed $1 billion to reclassify these services as clinical care, recognising that they are essential to health and dignity at home, not optional extras. 

Dovida CEO Geoff Hogg welcomed the announcement: 

“This is a genuinely significant moment for older Australians, and one that was welcome when it was first signalled earlier this year. Showering, dressing, and continence care represent the building blocks of a dignified day at home. Removing the cost barrier is the right thing to do, though with the change not taking effect until 1 October, there are still months to go for people who need that support right now.” 

If you are currently receiving personal care services through Dovida and have questions about how this change may affect your care plan, your Care Manager is ready to help. 

More home care places on the way 

The Budget also commits to accelerating the release of additional Support at Home packages, with the aim of reducing the significant backlog of people waiting for funded home care. Geoff said the intent was right, while acknowledging the scale of the challenge: 

“Every week that an older Australian waits for home care is a week their independence, health, and wellbeing are at risk. Accelerating the release of Support at Home places isn’t just a policy fix, it’s a meaningful commitment to the people behind the waitlist, and to the family carers holding everything together in the meantime.” 

For people currently waiting for Support at Home funding, it is worth knowing that Dovida also offers private home care services that can begin immediately, with no waitlist. These can be used while awaiting funded support, or to top up an existing package. 

Ageing at home is now a national priority 

Taken together, the Budget’s home care commitments reflect something that older Australians have been saying for a long time: they want to remain at home, in familiar surroundings, with the people and routines that matter to them. The Government’s investment signals that this preference is now being treated as a genuine policy priority. 

As Geoff put it: “The clearest signal in this Budget is that ageing at home isn’t just a preference. It’s now a genuine policy priority. When people can remain at home, connected to their community, their routines, and the people who matter to them, they remain the authors of their own lives.” 

Dementia care investment expanded 

The Budget allocates $224.3 million to deliver 20 additional Specialist Dementia Care Program units nationally, alongside an expansion of the Hospital to Aged Care Dementia Support Program. For families supporting someone living with dementia, this investment in specialist care environments is a positive step. 

It is also a reminder of the important role home-based dementia care plays earlier in the journey, before specialist residential support becomes necessary. Find out more about Dovida’s dementia care services at dovida.com.au/our-services/dementia-care. 

Private health insurance costs are likely to rise for some older Australians 

If you or someone you care for holds private health insurance, this Budget change is worth knowing about. 

From 1 April 2027, the age-based private health insurance rebate for older Australians will be reduced to the standard rate of 24 per cent, regardless of age. Currently, Australians aged 65 to 69 receive a 28 per cent rebate, and those aged 70 and over receive 32 per cent. 

With the age-based uplift removed, premiums are likely to increase. For some couples aged over 70 on Gold cover, estimates suggest this could mean paying up to $1,614 more per year to maintain the same policy. 

The Government has directed the savings from this change into the broader aged care funding package.  

PBS medicines: costs frozen for pensioners 

For older Australians holding a pension or concession card, the Budget delivered a straightforward piece of good news. The cost of Pharmaceutical Benefits Scheme (PBS) medicines will be frozen at $7.70 per script, meaning no increase to medication costs for eligible Australians for the foreseeable future. 

For many older people managing ongoing health conditions, medications are a regular and significant expense. Keeping that cost stable offers real and practical peace of mind. 

If you have questions about your care plan, your funding, or what these Budget changes may mean for you personally, please reach out to your Dovida Care Manager.