From 1 November 2025, the Australian Government will implement new financial hardship assistance measures to support individuals who struggle to afford aged care costs under the forthcoming Aged Care Act.
Originally slated for a 1 July launch, the Act’s commencement has been deferred to November, bringing with it updated provisions to help eligible Australians access residential and in-home aged care services without financial strain.
What is hardship assistance?
Financial hardship assistance is designed for those who, due to circumstances beyond their control, cannot afford their aged care contributions. The assistance allows the government to cover some or all of an individual’s aged care fees, paid directly to the provider on their behalf.
The assessment process and eligibility criteria for hardship assistance remain unchanged under the new Act, ensuring continuity for those already receiving support.
Eligibility is determined on a case-by-case basis, taking into account an individual’s financial situation. If approved, the government will cover approved amounts, while any remaining fees must still be paid to the provider by the individual.
Support for residential aged care
For those 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, the scope of assistance will expand to include the basic daily fee, hotelling contribution, non-clinical care contribution, and accommodation costs. For residential respite care, assistance may be available for the basic daily fee.
Those currently receiving hardship assistance should check their approval letter for expiry dates and reapply as needed. To request a copy of the letter, contact Services Australia on 1800 227 475.
Support for in-home aged care
For in-home care, the introduction of the Support at Home program on 1 November 2025 brings significant changes. Individuals with a Home Care Package issued before 1 July 2014, who were previously ineligible for hardship assistance, can now apply if they struggle to pay fees.
Those with packages issued on or after 1 July 2014 may be eligible for help with the basic daily care fee and income-tested fee. Upon transitioning to Support at Home, existing hardship approvals will remain valid until their expiry date.
From 1 November 2025, new entrants to the Support at Home program can apply for assistance with contributions towards independence and everyday living services. Applicants will be notified of the outcome by Services Australia, including details of any contribution caps and the duration of assistance.
Importantly, contributions are not required while an application is being assessed, but if unsuccessful, individuals must pay any outstanding contributions.
How to apply
To apply for hardship assistance, individuals must complete the Aged Care Claim for Financial Hardship Assistance form (SA462) and submit it to Services Australia 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 a $10,000 annual cap).
Applications are processed within 28 days, with Services Australia notifying applicants in writing of the outcome.
Additional information, such as essential expenses (e.g., food, rent, medicines, utilities), may be requested to complete the assessment. Applicants for Support at Home should inform their provider when applying to suspend fee collection during the assessment period, though residential providers are not required to suspend fees.
What if you’re not eligible?
Individuals deemed ineligible are encouraged to seek independent financial advice. Services Australia offers free support through its Aged Care Specialist Officers and Financial Information Service, available via face-to-face appointments.
Additional resources are available on the My Aged Care financial support and advice webpage.
Where to find more information
For further details or assistance, contact Services Australia’s Aged Care line at 1800 227 475 (Monday to Friday, 8am to 5pm) to discuss your situation, request an SA462 form, or learn about application progress. Other resources include:
Services Australia’s Aged Care Specialist Officers for face-to-face support.
My Aged Care website for detailed information on eligibility and financial assistance.
Department of Health and Aged Care website for specifics on the hardship supplement.
Aged Care Advocacy Line (1800 700 600) for free, independent, and confidential support.
The new hardship assistance measures reflect the government’s commitment to ensuring aged care remains accessible for all Australians, regardless of financial circumstances, as the sector transitions to the new Aged Care Act on 1 November 2025.
