Media Release: CHSP certainty welcomed, but underlying pressures remain

The Australian Local Government Association welcomes the Australian Government’s decision to extend Commonwealth Home Support Program contracts until 30 June 2029 and retain CHSP as a standalone program.

ALGA President Mayor Matt Burnett said the extension would provide important certainty for older Australians, councils and other providers, particularly in regional, rural and remote communities where alternative services may not exist.

“Councils provide essential home support services in some of Australia’s most challenging markets, often because no other provider is available,” Mayor Burnett said.

“Extending contracts to 2029 and recognising the continuing importance of block-funded, community-based services are positive decisions that will help protect continuity of care.

“But the contract extension removes only one source of pressure. Councils continue to face inadequate cost recovery, workforce shortages, rising delivery costs and increasingly complex regulatory and administrative requirements.

“Councils do not withdraw from aged care services lightly. Where councils have reconsidered their involvement, these decisions have generally reflected a combination of financial, workforce and regulatory pressures, not simply uncertainty about contract duration.”

ALGA supports the Government’s commitment to consult on the long-term future of CHSP, including the continuation of block funding and the program’s integration with Support at Home.

“Local government must be directly involved in designing the future program, particularly where councils are the only viable provider,” Mayor Burnett said.

“The long-term model must recognise the true cost of delivering services in regional, remote and First Nations communities and provide sustainable funding beyond 2029.

“Today’s announcement is an important step. The next task is to ensure councils can continue providing these services sustainably and that older Australians are not left without support because the underlying viability issues remain unresolved.”

Photo: health.gov.au