My parent can’t afford their aged care fees anymore. Is there any help available?
It’s completely understandable to feel worried when your parent is struggling with the cost of aged care. The good news is that financial hardship assistance is available to help in situations like this. Here’s a clear guide on how this works and what steps you can take to get the support your parent needs.
What is Financial Hardship Assistance?
Financial hardship assistance helps cover aged care costs if your parent cannot afford them for reasons beyond their control. If eligible, the Australian Government can pay some or all of their aged care fees and charges.
Types of Fees Covered
Depending on the type of care your parent receives, financial hardship assistance can help with:
- Home Care Packages fees
- Aged Care Home fees
- Residential Respite Care fees (short-term care)
Eligibility for Financial Hardship Assistance
To be eligible, your parent must meet these criteria:
- Complete a Means Assessment: They must have completed an aged care means assessment.
- Asset Limits: They must have assets valued at $44,631.60 or less (excluding unrealisable assets).
- No Excessive Gifting:
- No gifts over $10,000 in the past 12 months.
- No gifts exceeding $30,000 over the past 5 years.
Unrealisable Assets
An asset may be considered unrealisable if your parent cannot sell or borrow against it. Examples include:
- A house that’s been on the market for 6 months or more.
- Jointly owned property.
- Frozen assets or assets gifted under a Power of Attorney when your parent was incapacitated.
Note: Rental properties, private trusts, and lump sums paid for aged care accommodation are not considered unrealisable assets.
Essential Expenses Considered
When applying, Services Australia will look at essential expenses to determine eligibility. These may include:
For Aged Care Homes
- Resident fees
- Rent/mortgage payments for the home where a partner or dependent lives
- Medical and dental expenses
- Private health insurance and ambulance cover
- Transport to medical appointments
- Mobility aids and prescription glasses
For Home Care
- Home care fees
- Food costs
- Utilities (electricity, water, internet)
- Rent/mortgage payments
- Home insurance and maintenance
- Medical and transport costs
How to Apply for Financial Hardship Assistance
- Complete the Form: Fill out the Aged Care Claim for Financial Hardship Assistance form (SA462).
- Submit the Form: Lodge it with Services Australia.
- Provide Additional Information: If requested, supply any additional details quickly to avoid delays.
Assessment Timeline: Services Australia will assess the application within 28 days and notify you by letter.
If Your Parent Doesn’t Qualify
If they don’t meet the eligibility criteria, consider these next steps:
- Seek Financial Advice: Consult with a financial adviser for personalized options.
- Explore Other Assistance:
- Home Equity Access Scheme: A way to access equity in their home.
- Other Government Support Programs: Services Australia will check eligibility for other types of assistance.
Getting Financial Advice
It’s highly recommended to seek independent financial advice. Services Australia offers free services through:
- Aged Care Specialist Officers (ACSOs)
- Financial Information Service (FIS)
To book an appointment, call 132 300 and ask for the Financial Information Service.
Final Thoughts
Your parent’s well-being is the priority, and financial hardship assistance is designed to ensure they can access the care they need, even during tough times. Reach out to Services Australia, and know that support is available to help navigate this challenging situation.
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