2026 Federal Budget: What the aged care and NDIS announcements mean for participants?

The Australian Government has delivered its 2026-27 Federal Budget on 12 May 2026, announcing $3.7 billion for aged care and a suite of reforms to the National Disability Insurance Scheme (NDIS). For older Australians and people living with disability, the measures signal meaningful change to how support services are funded, delivered and accessed.

What's changing in aged care?

The single most impactful announcement for home care and Support at Home participants is the reclassification of personal care services under the Support at Home program. From 1 October 2026, showering, dressing, and continence support will move from the 'Independence' category to 'Clinical Care', removing co-contributions entirely. 

The $1 billion commitment means these everyday support services will not attract a co-contribution for eligible older Australians.

This is a direct response to widespread feedback from clients, families, providers and advocacy groups since the Support at Home program launched on 1 November 2025. 

Beyond personal care, the 2026 Federal Budget provides additional investment to expand access to the Support at Home program.

A further $389.8 million investment will accelerate the release of 24,000 additional Support at Home places in 2026-27 and improve the assessment process, hardship pathways and end-of-life support. 

For families who have been waiting, these changes should translate to faster access to the help they need.

More residential aged care beds

The Government is investing $1.7 billion to incentivise the construction of up to 5,000 additional aged care beds per year from 1 July 2027, with a focus on protecting access for people with limited financial means. New capital subsidies for providers who build or expand residential accommodation are designed to address long waiting lists - particularly in regions where supply has not kept pace with demand.

An additional $1.1 billion has been provisioned to increase and restructure the Accommodation Supplement, including a new payment tier for facilities where more than 60 per cent of residents are low-means supported. This structural change is aimed at making the economics of building supported accommodation more viable for providers.

Dementia care investment

Over $200 million has been committed to deliver 20 additional Specialist Dementia Care Program units and expand the Hospital to Aged Care Dementia Support Program from 11 to 20 locations nationally. For families navigating a dementia diagnosis and looking for appropriate residential or transitional care, this expansion represents more options and more specialised support across the country.

What's changing in the NDIS?

The NDIS reform package is the most significant structural overhaul since the scheme's establishment. The Government has framed the changes as returning the NDIS to its original intent: supporting people with permanent and significant disability to live with independence and dignity. 

The reforms are projected to save $37.8 billion over four years, though the NDIS will continue to grow and will remain Australia's largest social program outside the Age Pension.

Key changes to the NDIS announced in the federal budget include:

• Clearer eligibility: Standardised, evidence-based assessments of functional capacity will sit at the core of determining NDIS access - replacing the current variable approach.
  
  
• Tighter plan management: Criteria around plan reassessments will be strengthened, and budgets for social and community participation will be reset and progressively adjusted from 1 October 2026.
  
  
• New planning framework: From April 2027, the New Framework Planning approach will deliver more consistent, equitable and sustainable participant plans.
  
  
• Stronger fraud prevention: Increased oversight of providers and payments, stronger NDIA investigative and enforcement capabilities, and new regulatory controls to protect participants.

To cushion the impact of reduced budgets for community participation activities, the Government is establishing a $200 million Inclusive Communities Fund. 

This will rebuild the capacity of community organisations - disability services, sporting clubs, arts groups and others - to actively include and support NDIS participants in everyday community life.

Thriving Kids and Foundational Supports

As part of the broader $5 billion Foundational Supports commitment, the Government is investing $2 billion to establish the Thriving Kids program. This is designed to support children with developmental delay and autism outside the NDIS - a recognition that not every child who needs early support requires full scheme access. 

State and territory bilateral agreements are still being finalised, but the intent is to build a consistent national approach to early childhood development support.

What does this mean for Just Better Care participants, their families, and carers?

The aged care measures in this Budget are largely positive for existing and prospective home care participants. The removal of co-contributions for personal care services, effective October 2026, is a tangible win, making the support many participants rely on every day more affordable and accessible. 

The acceleration of Support at Home releases will also help those on waiting lists.

For NDIS participants and their families, the picture is more nuanced. Structural improvements to fraud prevention, provider oversight and planning consistency are welcome. 

However, the projected $37.8 billion in savings reflects real changes to plan values and access criteria that some participants will feel. 

If you're an NDIS participant and have questions, it's worth connecting with your local Just Better Care office now to understand how the changes may affect your plan.

Stay informed as details are confirmed

Many of the specific implementation details will be finalised over the coming months. 

Just Better Care team members will continue to monitor these developments and share updates as they're confirmed.

If you have questions about how these changes may affect you or someone you support, please reach out to your local Just Better Care office - we're here to help you make sense of what's changing and how it may impact participants and families who rely on these supports.

Frequently Asked Questions

When will personal care services like showering become free?

From 1 October 2026, showering, dressing and continence support will be reclassified from the 'Independence' category to 'Clinical Care' under the Support at Home program. Clinical care services have no co-contribution, meaning eligible older Australians will no longer pay out of pocket for these services. The Government has committed $1 billion to fund this change.

Do I need to do anything to access the free personal care changes?

No action is required. If you are already receiving Support at Home services, the reclassification will apply automatically from 1 October 2026. Your Just Better Care team member will confirm the change as part of your care plan review. If you are not yet receiving Support at Home, the first step is a free assessment through My Aged Care (or call 1800 200 422).

What is the Support at Home program and how does funding work?

Support at Home is the Australian Government's in-home aged care program, which launched on 1 November 2025. It replaced the former Home Care Package program. Eligible participants receive a quarterly budget to fund approved services delivered by a registered provider such as Just Better Care. You only pay co-contributions for services you use, and clinical care is fully government funded. Learn more on our Support at Home overview page, or review costs and contributions in detail.

How much funding will I receive under Support at Home?

Your quarterly budget is based on an independent assessment of your care needs. There are eight funding classifications for ongoing services. Former Home Care Package recipients have been transitioned automatically, with quarterly amounts ranging from $2,746.63 (former Level 1) to $15,939.55 (former Level 4) as of 1 November 2025, indexed each July. You can read more about how quarterly budgets and care planning work.

Am I eligible for Support at Home?

To access Support at Home you need to be assessed through the My Aged Care Single Assessment System. Eligibility is based on your age, residency status and assessed care needs. You can apply online at myagedcare.gov.au or call 1800 200 422. For a plain-language guide, visit our Support at Home eligibility page.

What services can I access through Support at Home?

The program funds three categories of support: clinical care (nursing, allied health, continence support), independence support (personal care, transport, respite, medication prompts) and everyday living (cleaning, shopping, meal preparation, gardening). Each category has different co-contribution rules. Following the Budget announcement, personal care services are moving into clinical care from October 2026. See the full Support at Home services list for details.

What is happening to the NDIS and when do the changes take effect?

The NDIS reform package introduces changes across eligibility, planning and provider oversight. Current NDIS plans remain active and no action is required now. Read our article on the NDIS New Framework Planning delay for a full breakdown of the timeline.

Where can I get more information or speak to someone about my care?

Your local Just Better Care office is the best starting point. Our team can help you understand what the Budget changes mean for your current or future support, walk you through the Support at Home assessment process, and connect you with the right services. You can also visit our Support at Home FAQ page or get started online.

Related reading

• Budget 2026-27: A Stronger Care System for All Australians↗ health.gov.au
  The full ministerial statement from Minister Mark Butler outlining all aged care and NDIS measures in the 2026-27 Federal Budget. Published 12 May 2026.
• Understanding the Support at Home Program
  Everything you need to know about Australia's new in-home aged care program, how it works and how to get started.
• Support at Home: Costs and Contributions
  How government funding works, when co-contributions apply and what the free personal care changes mean for your budget.
• Support at Home Eligibility
  Who qualifies, how the assessment process works and what to expect from My Aged Care.
• NDIS New Framework Planning Delayed Until April 2027
  What the delay means for current participants, which other NDIS reforms are still proceeding and what you need to do right now.
• Support at Home: 10 Frequently Asked Questions
  Plain-language answers to the most common questions about budgets, contributions, transitions from Home Care Packages and short-term pathways.
• Disability Support Services at Just Better Care
  How Just Better Care supports NDIS participants with personalised in-home and community disability services across Australia.