What happens if I genuinely cannot afford aged care fees? (Financial Hardship provisions)

What 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.

What 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.

Who 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.

What 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.

Do 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.

How 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.

What 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.”

What 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.

What 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.

Can 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.

What 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.

Can 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.

Practical first steps

1. Ask Services Australia to confirm your assessed aged care costs.

2. Tell your provider or care partner that the contributions are unaffordable.

3. Obtain the SA462 hardship claim form.

4. Gather evidence of income, assets and unavoidable expenses.

5. Lodge the claim promptly.

6. Ask the provider how essential care and outstanding invoices will be managed while you wait.

7. Seek advocacy assistance if the process becomes difficult.

What 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.

Helpful Local Home Help resources

• Start with Liz

• How much does Support at Home cost?

• More articles about aged care costs