Guide: Supporting financially challenged clients with aged care costs

From 1 November 2025, the Australian Government will implement financial hardship assistance under the new Aged Care Act, deferred from its original 1 July launch.

This program supports individuals who cannot afford aged care contributions due to financial constraints, ensuring equitable access to both residential and in-home care services.

As aged care providers, you play a vital role in informing low-means clients about these provisions and guiding them through the process. This guide outlines the key details to share with potential clients, based on the government’s recent press release.

Overview of financial hardship assistance

Financial hardship assistance is available for clients unable to meet aged care costs due to circumstances beyond their control.

The Australian Government will cover some or all approved fees, paying these directly to your organisation on the client’s behalf. Clients may still need to pay any remaining fees.

The eligibility criteria and assessment process remain consistent with current arrangements, ensuring continuity for existing recipients and clarity for new applicants.

Support for residential aged care clients

For clients entering permanent residential aged care before 31 October 2025, hardship assistance may cover the basic daily fee, means-tested care fee, and accommodation costs.

From 1 November 2025, support will extend to the basic daily fee, hotelling contribution, non-clinical care contribution, and accommodation costs. For clients in residential respite care, assistance may be available for the basic daily fee.

Advise clients currently receiving hardship assistance to check their approval letter for expiry dates and reapply as needed. They can request a copy of their letter by contacting Services Australia at 1800 227 475.

Support for in-home aged care clients

The Support at Home program, launching 1 November 2025, introduces changes for in-home care clients.

Those with a Home Care Package issued before 1 July 2014, previously ineligible for hardship assistance, can now apply if they struggle to pay fees.

Clients with packages issued on or after 1 July 2014 may qualify for support with the basic daily care fee and income-tested fee. Existing hardship approvals will remain valid upon transitioning to Support at Home until their expiry date.

For clients entering Support at Home from 1 November 2025, assistance may cover contributions towards independence and everyday living services.

Encourage clients to notify you when applying for hardship assistance, as this allows you to suspend fee collection during the assessment period. If an application is unsuccessful, clients must pay any outstanding contributions.

Guiding clients through the application process

Clients must submit the Aged Care Claim for Financial Hardship Assistance form (SA462) to Services Australia, along with supporting evidence, such as three months of expense records. Eligibility requires:

• An income and assets assessment for aged care purposes.
• Assets valued below 1.5 times the annual basic Age Pension, including supplements ($44,811 as of 20 March 2025).
• No gifting of more than $10,000 in the current financial year or $30,000 over five financial years, with an annual cap of $10,000.

Services Australia will process applications within 28 days and provide written notification of the outcome, including details of approved assistance. Clients may need to submit additional information, such as essential expenses (e.g., food, rent, medicines, utilities), to avoid delays.

For Support at Home clients, remind them to inform you of their application to suspend fee collection, noting that residential aged care providers are not required to suspend fees during this period.

Supporting ineligible clients

For clients who do not qualify, recommend seeking independent financial advice. Services Australia offers free support through its Aged Care Specialist Officers and Financial Information Service, available via face-to-face appointments. Direct clients to the My Aged Care website for additional financial planning resources.

Key resources to share with clients

Encourage clients to contact Services Australia’s Aged Care line at 1800 227 475 (Monday to Friday, 8am to 5pm) to discuss eligibility, request the SA462 form, or check application progress.

Additional resources include:

• Services Australia Aged Care Specialist Officers: Face-to-face support for aged care matters.
• My Aged Care Website: Comprehensive information on financial hardship assistance and eligibility.
• Department of Health and Aged Care Website: Details on the hardship supplement.
• Aged Care Advocacy Line: Free, independent support at 1800 700 600.

Your role as a provider

By informing low-means clients about financial hardship assistance, you can help ensure they access the care they need. Share this guide with your staff to maintain consistent communication and support clients in navigating the application process.

The new Aged Care Act, effective 1 November 2025, underscores the government’s commitment to accessible aged care, and your role in disseminating this information is critical to its success.