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Help with aged care homes

What if I can't afford to pay?

Under the Aged Care Act 1997 (more information), aged care homes are required to care for a certain minimum number of people who need help to pay for their aged care accommodation – known as supported, concessional or assisted residents. For this they receive extra subsidies. This ensures that all residents receive the same standard of care and have equal access to care.

Fully supported and concessional residents do not pay accommodation bonds (more information) or accommodation charges (more information). The government gives additional supplements to aged care homes on their behalf.

To be eligible to be a supported resident you must:

• have first entered permanent residential care (or commenced pre-entry leave) on or after 20 March 2008, or have re-entered care (or commenced pre-entry leave), after a break of more than 28 days, on or after 20 March 2008, and
• have assets below the maximum assets threshold.

To be eligible to be a concessional resident you must:

• have first entered permanent residential aged care (or commenced pre-entry leave) before 20 March 2008, and must not have re-entered care, after a break of more than 28 days, on or after 20 March 2008, and
• receive an Australian Government income support payment, and
• not have owned or part-owned a home in the past two years, and
• have assets of less than 2.25 times the annual single basic age pension.

In some circumstances you will be treated as a non-homeowner. These include, if the care recipient has either:

• a partner or dependent child still living in the home,
• a carer who is eligible to receive an Australian Government income support payment, and has lived in the home for at least the past two years, or
• a close relation (father, mother, brother, sister, child, grandchild) who is eligible for an Australian Government income support payment, and has lived in the home for at least the past five years.

If a person is treated as a non-homeowner, the value of the home will not be included in the assets assessment.

To be eligible to be an assisted resident you must:

• meet the same criteria as for concessional residents, except
• have assets of between 2.25 and 3.61 times the annual single basic age pension.

Aged care homes also receive an additional supplement for assisted residents, but at a lower rate than for concessional residents.

Partially supported and assisted residents may be asked to pay a small accommodation bond or accommodation charge.

Financial hardship

The government has also introduced provisions for residents facing genuine difficulties in meeting their costs. Financial hardship assistance is available for daily care fees, income tested fees, accommodation bonds and accommodation charges.

This page was last updated on: 07 June 2011

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