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Information for CHSP service providers: transition to payment in arrears


On 11 May 2021, the Australian Government announced changes to the Commonwealth Home Support Programme (CHSP) to help position the aged care sector as it moves towards a new support at home program commencing in July 2023. The new program will replace the CHSP, Home Care Packages, Short-Term Restorative Care, and residential respite programs.

To prepare for these future reforms, CHSP grant agreements will be extended for one year from 1 July 2022 to 30 June 2023, with most CHSP providers transitioning to payment in arrears.

As this will be a significant change for many CHSP service providers, the department will consult with providers on the implementation of this measure over the next three months through the establishment of a representative working group. This group will consider:

  • simple reporting requirements that are not onerous for providers
  • a review of unit prices to support viable and sustainable service delivery models – a consultancy is currently being established to conduct this review
  • redesign of grant agreements and activity work plans
  • the appropriate start date for moving to payment in arrears within the 2022-23 financial year
  • the identification of a small number of services that may have special circumstances requiring an exemption from moving to full payment in arrears
  • the development of guidance for providers on moving to payment in arrears, including the role of Sector Support and Development providers in helping to prepare for this change.

The working group will include representatives from each CHSP service type. A request for members will be made via peak bodies over the next week.

Further details about these changes will be made available to service providers through the normal channels as they are finalised, with detailed advice to be finalised by September 2021.

Payment in arrears will come into effect within the 2022-23 financial year, with the start-date to be determined by September 2021, following the above consultation process.

Unknown Author, 2021, Department of Health (

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