What happens if I genuinely cannot afford aged care fees? (Financial Hardship provisions)
You should not assume you must stop receiving care because you cannot afford the fees. Complete the financial assessment, apply for hardship assistance through Services Australia and tell your provider immediately. If approved, the government may cover some or all eligible costs for a specified period.
Key points
- Confirm which fee rules apply before relying on a quoted amount.
- Individual eligibility, availability and outcomes can vary.
- Ask questions early and seek independent help if anything feels unclear or unsafe.
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01Worth checkingWhat happens if I genuinely cannot afford aged care fees?
If you cannot afford your aged care contributions, fees or accommodation costs for reasons beyond your control, you can apply for financial hardship assistance.
Each application is assessed individually. If approved, the Australian Government may pay some or all of the eligible costs on your behalf for a specified period.
Do not simply stop services or ignore invoices. Contact your provider and Services Australia as soon as you realise the costs are unaffordable.
02Guide sectionWhat costs can hardship assistance cover?
The costs that may be covered depend on the aged care program and fee arrangements that apply to you.
For Support at Home, assistance may cover some or all of your required participant contributions for approved services.
For residential aged care, assistance may be available for eligible costs such as:
the Basic Daily Fee
means-tested or non-clinical care contributions
accommodation contributions or payments
other eligible residential aged care charges.
It generally does not cover optional services, upgraded accommodation or additional items that you privately agreed to purchase from the provider.
03Guide sectionWho may qualify?
Services Australia considers whether you are unable to pay because of circumstances beyond your control.
Before applying, you generally need:
a current aged care calculation of your cost of care
assets below the applicable hardship threshold
no gifts above the permitted gifting limits
approval for Support at Home, where applying for Support at Home hardship assistance.
As at 20 March 2026, the published asset threshold is $46,835.10. This figure is indexed and may change.
Meeting the asset threshold does not automatically guarantee assistance. Services Australia considers the individual circumstances and supporting evidence.
04Guide sectionWhat circumstances might be considered?
Financial hardship may arise because of circumstances such as:
unusually high essential living expenses
medical or disability-related costs
being unable to access assets
financial abuse or exploitation
unexpected changes in income
unavoidable debts or commitments
costs associated with maintaining a home for a protected spouse or family member
other circumstances outside the person’s reasonable control.
You will usually need to explain why the assessed aged care costs cannot be paid and provide evidence of income, assets, expenses and the circumstances causing hardship.
05Guide sectionDo I need to complete the financial assessment first?
Yes. Services Australia generally needs a current calculation of your aged care costs before it can assess hardship.
If your financial assessment is missing or more than 12 months old, you may need to update it before the hardship claim can be decided. You cannot withhold all financial information and still expect Services Australia to assess whether hardship exists.
For Support at Home, this may involve completing the Support at Home calculation of your cost of care form-SA456 if Services Australia does not already hold the required information.
06Guide sectionHow do I apply?
Complete the Aged Care Claim for Financial Hardship Assistance form-SA462 and provide the requested supporting documents.
You can lodge the claim:
through your Centrelink online account linked to myGov
by post to Services Australia
with help from a Services Australia Aged Care Specialist Officer.
Services Australia’s aged care line is 1800 227 475.
You can apply once you begin having difficulty paying. You may also apply before care starts if you already know the assessed costs will be unaffordable.
07Guide sectionWhat documents might be required?
Depending on the circumstances, Services Australia may ask for:
bank and investment statements
evidence of income
details of property and other assets
bills and essential household expenses
medical or pharmacy expenses
loan or debt information
legal documents
evidence that an asset cannot be accessed
evidence of financial abuse or unusual circumstances.
Provide a clear explanation rather than simply writing that the fees are too high.
For example:
“After paying rent, medication, electricity and essential medical expenses, I do not have enough income remaining to pay the assessed contribution without going without food or medication.”
08Guide sectionWhat happens while the claim is being assessed?
Tell your provider that you have applied for hardship assistance.
Ask the provider:
whether essential services will continue
how outstanding invoices will be managed
whether payment arrangements can be temporarily adjusted
what information it needs from Services Australia
whether it can help you complete the application.
Do not assume the application automatically pauses every charge. Keep communicating with the provider and retain copies of invoices, statements and correspondence.
09Guide sectionWhat happens if assistance is approved?
Services Australia will tell you and your provider:
which costs are covered
whether they are covered fully or partly
when the assistance begins
how long it will last.
The government generally pays a fee-reduction supplement to the provider on your behalf. Financial hardship assistance is usually granted for a limited period rather than permanently.
If your hardship continues, you may need to apply again before the existing approval expires.
10Guide sectionCan assistance be backdated?
Services Australia may grant assistance from the date you lodged the claim or from another date when you can demonstrate that you met the hardship criteria.
The exact commencement date depends on the circumstances and evidence provided.
This is another reason to apply promptly rather than allowing unpaid fees to accumulate.
11Guide sectionWhat if the application is refused?
Ask Services Australia for a written explanation.
You can:
provide missing or updated evidence
ask for the decision to be reviewed
seek help from an Aged Care Specialist Officer
contact the Older Persons Advocacy Network for independent assistance
discuss an affordable payment arrangement with the provider.
A refusal does not necessarily mean the person can comfortably afford the fees. It may mean the specific eligibility rules were not met or the evidence was insufficient.
12Worth checkingCan the provider stop my care because I cannot pay?
Do not ignore the issue, because unpaid invoices can affect the relationship with the provider.
However, a provider should discuss the problem, explain the available hardship process and consider the person’s safety and rights. Essential care should not be withdrawn abruptly without proper communication, planning and consideration of risk.
If a provider threatens to stop essential care while a genuine hardship issue is being addressed, seek assistance from:
My Aged Care on 1800 200 422
OPAN on 1800 700 600
the Aged Care Quality and Safety Commission on 1800 951 822.
13Guide sectionPractical first steps
Ask Services Australia to confirm your assessed aged care costs.
Tell your provider or care partner that the contributions are unaffordable.
Obtain the SA462 hardship claim form.
Gather evidence of income, assets and unavoidable expenses.
Lodge the claim promptly.
Ask the provider how essential care and outstanding invoices will be managed while you wait.
Seek advocacy assistance if the process becomes difficult.
14Guide sectionWhat should I do next?
Confirm the details with My Aged Care or the relevant provider, write down your questions and ask for important information in writing before making a decision.
15Guide sectionHelpful Local Home Help resources
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