Two-year extension on home support program for elderly

The program supports over 800,000 people and was due to be folded into Labor's broader Support at Home initiative in July 2027.

Merging this program and the more specialised care scheme into one system was a policy decision from the Morrison government, Health Minister Mark Butler said.

"They deliver quite different services, drawing on quite different capabilities in the communities and serving quite distinct needs on the part of older Australians," Mr Butler told reporters in Canberra on Thursday.

"We paused the decision ...and have decided now to retain the home support program as a standalone program."

The program provides an entry point for older people to access community-based aged care which Ageing Australia said is vital to support independence.

Chief executive Tom Symondson warned the program cannot be rolled into Labor's Support at Home initiative yet, which he said, has not delivered for older people months since it began.

"It's critical that we use this time to look at existing contracts, and make sure they're sufficient to provide the support needed for local communities," Mr Symondson said in a statement.

"Many are outdated with woefully inadequate funding to deliver for the needs of the community, which must be urgently addressed." 

Labor has flagged consultation will begin this year to determine what the long-term future of the aged home care sector looks like.

Greens spokesperson for older people Penny Allman-Payne welcomed the extension but slammed the original plan to merge the two programs.

"We heard really clearly in a Senate inquiry that CHSP is one of the most trusted parts of the aged care system," Senator Allman-Payne told reporters.

"It's the part of the aged care system that many First Nations older people and their communities rely on to get care in remote areas.

"It's the part of the system where older people who are stuck on the waiting list for Support at Home are extended a lifeline."