Financial hardship can be an overwhelming concern, especially when you or a loved one need access to aged care services. These services, whether you’re receiving funding through a home care package, residential care funding, or respite care, can be costly. However, the Australian Government offers financial hardship assistance to help individuals who are unable to afford these services due to financial difficulties. This program ensures that everyone, regardless of financial status, can receive the care they need, with the government potentially covering part or all of the fees. 

What is financial hardship assistance?

Financial hardship assistance is a government initiative that helps individuals who find themselves struggling to afford aged care services. Whether the care is delivered at home, in a residential facility, or as temporary respite care, the program is designed to ease the financial burden on those who need support the most. The Australian Government understands that some people may face difficult circumstances that prevent them from paying for care, so they step in to cover the cost or reduce it based on the applicant’s financial situation.

The assistance provided varies depending on the type of care being received, and the extent of financial help will be determined through an individual assessment. This means that not everyone will receive the same level of assistance; instead, the amount of aid will reflect each person’s unique financial circumstances.

Who is eligible for financial hardship assistance?

Eligibility for financial hardship assistance depends on meeting several criteria. Firstly, you must have completed an aged care means assessment. This assessment helps determine how much you can afford to pay for your care based on your income, assets, and living situation. You can find the link to the aged care means assessment here.

Next, you must meet specific asset thresholds. To be eligible for assistance, your assets cannot exceed $44,631.60 (excluding certain unrealisable assets). Unrealisable assets are those that cannot be sold or used as collateral to obtain funds, such as a house that has been on the market for an extended period or assets held in a jointly owned property. However, there are exceptions. For example, properties that are rented out, private trusts, and private companies are not considered unrealisable assets.

Additionally, there are rules about gifting assets. If you have gifted more than $10,000 in the past 12 months, or more than $30,000 in the last five years, you will not qualify for financial hardship assistance. These rules are in place to prevent individuals from transferring wealth to others to reduce their asset pool artificially.

The application process 

If you meet the eligibility criteria, the next step is to apply for financial hardship assistance. The application process involves completing the Aged Care Claim for Financial Hardship Assistance form (SA462) and submitting it to Services Australia. You can find this form here. Once your application is received, Services Australia will assess your financial situation, including income, assets, and essential expenses. They will determine how much financial assistance you may be eligible for based on these details.

The assessment process generally takes up to 28 days, but if additional information is required, it may take longer. It’s important to provide all requested documents quickly to avoid delays in the process. Essential expenses, such as daily living costs, are an important part of the assessment, as they help determine how much disposable income you have after covering these necessary costs.

If your application is approved, you will be informed of the financial assistance you are eligible to receive. However, if your application is not approved, you can contact Services Australia to discuss the reasons and explore potential alternatives or appeals.

What happens if you don’t meet the eligibility criteria? 

Not everyone will meet the criteria for financial hardship assistance. If you find that you are not eligible, there are still options available. The first step is to seek professional financial advice. A financial adviser can help you understand your situation better and guide you through other potential financial support options.

In some cases, you may be able to access other government programs or initiatives designed to support older Australians. Services Australia will check if you are eligible for any additional assistance before granting financial hardship support. This could include benefits such as the Age Pension, income support payments, or even the Home Equity Access Scheme, which allows you to access the equity in your home to help pay for aged care.

Seeking financial advice  

It is highly recommended to seek financial advice when applying for financial hardship assistance. The application process can be complex, and understanding your financial options is crucial to making the right decisions. Services Australia offers support through its Aged Care Specialist Officers (ACSOs) and Financial Information Service (FIS), who can provide guidance on various financial matters, including the Home Equity Access Scheme. You can also find more information on reverse mortgages and other financial tools through the MoneySmart website.

Additionally, a financial adviser can help you plan for future expenses and ensure that you are making the most of any available support programs. If you’re unsure of your eligibility or the best course of action, professional advice can help alleviate some of the stress and confusion.

How to contact Services Australia   

Services Australia is the main body responsible for managing financial hardship applications. If you need assistance or more information, you can contact them directly. You can reach them at 1800 227 475 to inquire about your application’s progress, request a printed application form, or discuss any issues with your financial hardship application. Services Australia is available to help you navigate the application process and ensure that you are receiving the financial support you need.