Financial hardship assistance is available to individuals who are unable to afford their aged care costs due to circumstances beyond their control.
Each case is evaluated on a case-by-case basis to determine eligibility. If deemed eligible, the Australian Government may cover some or all of your fees and charges, ensuring you receive the necessary care.
What support can I have?
Financial hardship assistance can provide support for various fees and charges depending on the type of care you are receiving.
This assistance is available for individuals receiving – Home Care Packages, residing in aged care homes, or in need of residential respite care (short-term care).
Who can apply for financial hardship assistance?
In order to qualify for financial hardship assistance, there are specific criteria that must be met. You will not be eligible if you:
- Have not undergone an aged care means assessment, which calculates your cost of care.
- Possess assets valued at over $44,631.60, excluding unrealizable assets that cannot be easily converted to cash.
- Have given away more than $10,000 in the past 12 months, or more than $30,000 in the past 5 years.
Failure to meet any of these criteria will result in ineligibility for financial hardship assistance.
What are unrealizable assets?
An asset may be deemed unrealizable if it cannot be sold or used as collateral for borrowing purposes.
This can include various situations such as:
- owning a house that has been listed on the market for six months or longer,
- jointly owned property,
- gifting decisions made by a Power of Attorney or during incapacitation,
- frozen assets.
However, assets such as properties that are rented out, private trusts, private companies, and lump sums paid for accommodation in an aged care home are not considered unrealizable.
If you are facing financial hardship, you may have the option to request for an asset to be evaluated as unrealizable when seeking financial assistance. If an asset is classified as unrealizable, it will not be factored into your hardship asset threshold.
Please refer to the financial hardship assistance application forms for further details on unrealizable assets.
I have met the eligibility criteria; what are the next steps?
If you meet the eligibility criteria outlined above, the next steps are as follows:
- Begin the process by applying for financial hardship assistance. This can be done by completing and submitting the relevant application form.
- Services Australia will carefully review your application. In some cases, they may require additional information from you. It is important to provide this information promptly to prevent any delays. They will also evaluate your essential expenses and determine if you qualify for financial assistance from other government programs.
- Once Services Australia has completed its assessment, they will inform you of their decision regarding your application for financial hardship assistance.
- If your application is not approved, you have the option to reach out to Services Australia to further discuss your situation.
What are essential expenses?
Essential expenses are the necessary payments required to cover your day-to-day living costs. These expenses can vary depending on your individual circumstances.
When applying for financial hardship assistance, Services Australia will assess your income after all essential expenses have been paid. If you have access to more than 15% of the basic age pension amount (equivalent to $157.07 per fortnight) after covering your essential expenses, you may not qualify for financial hardship assistance.
Home care essential expenses encompass a range of costs including:
- home care fees,
- food expenses,
- various home-related expenses such as rent or mortgage payments, maintenance, insurance, rates, and utility bills.
- Medical expenses,
- dental care,
- prescription glasses or contact lenses,
- mobility aids,
- ambulance cover,
- transportation costs,
- private health insurance,
- funeral plan payments
It is important to note that expenses incurred by a person acting on your behalf, that do not directly benefit you, are not included in essential expenses.
What is the process for applying for financial hardship assistance?
If you meet the eligibility requirements, you have the opportunity to apply for financial hardship assistance. This can be done by filling out and submitting the Aged Care Claim for financial hardship assistance form (SA462) to Services Australia.
What does the assessment entail?
Once Services Australia receives your application, it will be assessed within 28 days. You will be notified of your eligibility for assistance via letter.
If additional information is required to support your application, Services Australia may reach out to you. It is important to provide this information promptly to prevent any delays in the process. Once the additional information is received, you can expect to receive a decision on your eligibility within 28 days.
What steps should I take next if I don’t meet the eligibility criteria?
Seeking financial advice can be highly beneficial. Conducting research to determine the best options for your specific situation is recommended.
If you would like to further discuss your financial circumstances, please feel free to contact Services Australia.
Are there alternative types of financial assistance?
Yes, Services Australia will also assess your eligibility for financial assistance from other government programs before providing financial hardship assistance for your aged care costs. They will review whether:
- you have attempted to access a pension, benefit, or income support payment,
- if you qualify for financial assistance through programs such as
- financial hardship for your pension,
- the Home Equity Access Scheme,
- any other available sources.
Am I able to obtain financial advice?
Yes, it is highly recommended that you consult with a financial adviser regarding your finances.
In addition, you have the option to access free financial information and education through Services Australia’s Aged Care Specialist Officer (ACSOs) and Financial Information Service (FIS). These professionals can also offer guidance on the Home Equity Access Scheme.
For further details on reverse mortgages, you can visit the MoneySmart website.
If you require additional support and advice on financial matters, please feel free to explore the Financial Support and Advice page for more information.