Older Australians who are finding it difficult to pay their aged care fees may be eligible for new and expanded financial hardship assistance.
Administered by Services Australia, the scheme is designed to ensure no eligible person goes without essential care due to financial barriers.
It provides fee-reduction supplements for older people receiving in-home aged care or living in residential communities who cannot meet their required contributions.
The government says this assistance will be available to those experiencing ‘genuine financial hardship’ with assessments made on a case-by-case basis.
As this assistance is managed at a federal level, local care providers, including KompleteCare, continue to deliver essential care services that enable older people to remain safe and comfortable in their own homes.
Who can apply for financial hardship assistance?
To qualify, applicants must first have their income and assets assessed for aged care purposes.
They must also have assets valued at no more than $45,969.30, excluding assets that cannot reasonably be sold or borrowed against.
These ‘unrealistic assets’ may include jointly owned properties, frozen assets, or homes that have been listed on the market for more than six months without sale.
Strict gifting rules also apply. Older Australians are not eligible if they have gifted:
- More than $10,000 in the current financial year or any of the past four years, or
- More than $30,000 across the previous five financial years.
Once these baseline criteria are met, Services Australia examines a person’s financial circumstances, including their ongoing expenses and access to income.
What expenses are considered?
Eligibility is partly determined by how much income a person has remaining after paying for their essential day-to-day living costs.
For people receiving Support at Home, essential expenses can include:
- Food
- Rent or mortgage repayments
- Home maintenance and insurance
- Utilities
- Internet and telephone
- Medical and dental care
- Mobility aids and assistive equipment
- Transport costs
- Private health insurance
- Funeral plan payments
If, after covering these costs, a person has access to less than 15 per cent of the basic age pension ($161.96 per fortnight), they may receive a full fee reduction supplement.
Those with slightly higher remaining income may be eligible for a partial reduction.
Different rules apply in residential aged care, where fees, housing costs, health bills, and mobility expenses are included in the assessment.
How the new Support at Home program changes access
Under the current arrangements, some long-term Home Care Package recipients (particularly those who entered the program before 1 July 2014) have been unable to access financial hardship assistance.
However, all Support at Home clients will be able to apply if they are struggling to pay their contributions.
For people already receiving hardship assistance in the Home Care Package system, their support will continue when they transition to Support at Home, until their approval expires.
KompleteCare, who operate under the Support at Home model, play an important role in helping older Australians maintain access to the services they rely on.
How to apply for financial hardship
Applications must be lodged using the Aged Care Claim for Financial Hardship Assistance form (SA462) along with evidence of expenses over the previous three months.
Once submitted, Services Australia will (in the following order):
- Review income and assets
- Assess essential expenses
- Determine whether other forms of government assistance are available, such as the Age Pension, the Home Equity Access Scheme, or financial hardship support linked to pensions
- Issue a written decision
The process generally takes up to 28 days, though delays may occur if additional information is required.
Importantly, people receiving Support at Home do not need to pay their contributions while their application is being assessed.
If approved, the reduction is backdated to the date of the application. If rejected, the suspended contributions must be paid.
Who pays the fees during hardship?
If a person is approved for financial hardship assistance:
- The Australian Government will cover some or all their aged care fees
- Payments are made directly to aged care providers
- If a person is required to pay part of the cost, they will continue that portion
Where to get help
Older Australians seeking advice on their financial options can contact:
Both are available through Services Australia for free information and guidance.
They can also explain options such as the Home Equity Access Scheme, which may help older people manage the cost of care.
Financial hardship applications are managed solely by Services Australia, who can be contacted on 1800 227 475.
With this considered, KompleteCare also encourage clients and families to seek financial advice early to help them plan for safe and sustainable in-home support.