The new Support at Home program is proposing providers funding is a mix of fixed and grant funded arrangements:

Activity based funding:

• Providers bill for services on a service list and can only price up to the list price set by government on advice of IHACPA.​

• Prices include a mark-up for administrative and travel costs​

• Services are billed against client budgets (or a flexible funding pool – see below)​

• Invoices may be submitted monthly or more frequently to Services Australia

Funding pool - for additional temporary client services:

• Providers will be able to deliver extra services to clients (above their budget) when they have temporary needs – eg after a fall or when a carer is away​

• This will be paid as activity based payments billed against a flexible funding pool​

• Each provider will have access to a flexible funding pool set at 25% of their total client budgets – eg a provider with client budgets of $100,000 could bill up to an extra $25,000 to provide extra supports​

• Providers would determine how to allocate this fund across clients within guidelines​

• This approach may also be used for episodic care management services.

Supplementary grants by service type:

• Existing CHSP providers delivering these service types would receive a funding guarantee set at 80% of their current grant value​

• If monthly activity based payments fall short of the funding guarantee, they will receive an automatic top-up payment to the guarantee.​

• These providers will be able to plan with funding certainty while receiving full activity based payments for any service expansion for new clients.

Supplementary grants for rural and remote locations:

• Providers, such as those operating in rural and remote locations or with diversity groups, for whom activity based payments would be insufficient may bid for long term supplementary grant funding.​

• Grants would be part of their ongoing funding model on 3-5 year agreements.