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Financial hardship assistance can help you, if for reasons beyond your control, you can’t afford your aged care costs.

Each case is assessed on an individual basis. If you are eligible, the Australian Government will pay some, or all, of your fees and charges – helping you to get the care you need.

What help can I get?
Who is eligible for financial hardship assistance?
I meet the eligibility criteria – what happens next?
How do I apply for financial hardship assistance?
What is the assessment process?
I don’t meet the eligibility criteria – what do I do next?
Are there other types of financial assistance?
Can I seek financial advice?
Contact Services Australia

 

What help can I get?

Financial hardship assistance can help you with different types of fees and charges. It depends on the type of care you are receiving.

If you began receiving a Home Care Package on or after 1 July 2014, you may be eligible for help with your basic daily fee and income tested care fee. In addition to your income, the value of your assets will also be considered as part of the assessment process.

You can’t receive financial hardship assistance for additional service fees.

If you began receiving a Home Care Package before 1 July 2014, you will not be eligible for this financial hardship assistance program. However, you can negotiate lower fees directly with your home care provider.

If you entered an aged care home for permanent care on or after 1 July 2014, you may be eligible for help with your basic daily fee, means tested care fee, and/or accommodation costs. 

If you entered an aged care home for permanent care before 1 July 2014, you may be eligible for help with your basic daily fee, income tested fee, and/or accommodation costs. 

You can’t receive financial hardship assistance for extra and additional service fees.

You may be eligible for help with your basic daily fee. 

In addition to your income, the value of your assets will also be considered as part of the assessment process.

Who is eligible for financial hardship assistance?

To be eligible for financial hardship assistance, you must meet certain criteria. You will not be eligible if you:

  • have not completed an aged care means assessment (a calculation of your cost of care)
  • have assets valued at more than $44,631.60 (excluding unrealisable assets)
  • have gifted:
    • more than $10,000 in the previous 12 months
      or
    • more than $30,000 in the previous 5 years.

What are unrealisable assets?

An asset may be considered unrealisable if you cannot sell it or borrow against it. 

This may include:

  • a house that you own that has been on the market for six months or more
  • jointly owned property
  • gifting – where the decision to gift was made by a Power of Attorney or when the person was incapacitated
  • frozen assets.

It does not include: 

  • properties that you own and rent out
  • private trusts and private companies
  • lump sums you have paid for accommodation in an aged care home.

You may be able to apply for an asset to be assessed as unrealisable when you apply for financial hardship assistance. If an asset is considered unrealisable, it will not count towards your hardship asset threshold.

More information on unrealisable assets is available on the financial hardship application forms.

I meet the eligibility criteria – what happens next?

If you meet the eligibility criteria above, the next steps are:

  1. Apply for financial hardship assistance by completing and lodging the relevant application form.
  2. Services Australia will assess your application. They may need to ask you for more information, which you will need to provide as soon as you can to avoid delays. They will also check your essential expenses and whether you are eligible for financial assistance from other government programs.
  3. After Services Australia has finished their assessment, they will let you know if you are approved for financial hardship assistance.
  4. If your application is not approved, you can contact Services Australia to discuss it.

What are essential expenses?

Essential expenses are what you must pay to meet your normal day-to-day living costs. They vary depending on your circumstances.

If you apply for financial hardship assistance and you meet the eligibility criteria above, Services Australia will check to see how much income you have access to after you have paid all of your essential expenses. If you have access to more than 15% of the basic age pension amount (or $157.07 per fortnight) after you have paid your essential expenses, you may not be eligible for financial hardship assistance.

Essential expenses include things like:

  • resident fees
  • rent or mortgage repayments for the principal home where your partner or a dependent child lives
  • private health insurance
  • ambulance cover
  • medical expenses, including expenses incurred under a health professional’s direction
  • dental care
  • transport costs to go to medical appointments
  • prescription glasses (one pair per year) or contact lenses
  • artificial limbs, eyes or hearing aids for amounts that are not already covered by other government schemes or programs
  • wheelchair and mobility aids
  • regular funeral plan payments.

They do not include:

  • extra service fees
  • amounts paid for additional care and services
  • amounts spent by a person authorised to act on your behalf, on things that do not directly benefit you. 

Home care essential expenses include things like:

  • home care fees
  • food costs
  • costs relating to the home, including:
    • rent or mortgage repayments
    • home maintenance, including repair and replacement costs
    • home insurance
    • rates
    • water, sewerage, gas and electricity costs
    • telephone and internet costs
  • medical expenses, including expenses incurred under a health professional’s direction
  • dental care
  • prescription glasses (one pair per year) or contact lenses
  • artificial limbs, eyes or hearing aids for amounts that are not already covered by other government schemes or programs
  • wheelchair and mobility aids
  • ambulance cover
  • transport related costs, including public transport costs, and vehicle registration, repairs and insurance
  • private health insurance
  • regular funeral plan payments.

They do not include:

  • amounts spent by a person authorised to act on your behalf, on things that do not directly benefit you.

How do I apply for financial hardship assistance?

If you meet the eligibility requirements, you can apply for financial hardship assistance. You can do this by completing and lodging the Aged Care Claim for financial hardship assistance form (SA462) with Services Australia. 

What is the assessment process?

Once Services Australia receives your application, it will be assessed within 28 days. You will find out if you are eligible for assistance by letter. 

If needed, Services Australia may ask you for more information to support your application. Try to provide that information to them as soon as possible to avoid delays. You will then find out if you are eligible within 28 days after Services Australia have received the additional information. 

I don’t meet the eligibility criteria – what do I do next?

It’s beneficial to seek financial advice. You can do some research to see what options work best for you. 

If you want to discuss your situation further, you can contact Services Australia.

Are there other types of financial assistance?

Yes. Services Australia will also check if you are eligible for financial assistance from other government programs before granting financial hardship assistance for your aged care costs. The types of things they check are:

  • if you’ve taken steps to access a pension, benefit or income support payment
  • if you can access financial assistance through: 

Can I seek financial advice?

Yes. In fact, it is recommended. You may want to talk to a financial adviser about your finances. 

You can also receive free financial information and education through Services Australia's Aged Care Specialist Officers (ACSOs) and Financial Information Service (FIS). They can also provide information about the Home Equity Access Scheme.

You can also find more information about reverse mortgages on the MoneySmart website.

For more information and guidance on financial matters, you can also visit our financial support and advice page.

 

Contact Services Australia

Services Australia manages all financial hardship applications. You can call them on 1800 227 475 to:

  • get a printed copy of the application form mailed to your address,
  • find out how your application is progressing, or to
  • discuss the outcome of an application.
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