Nine in ten aged-care applicants in Australia rely on welfare

Summarised from 2 outlets · 3 reports · Updated 2 Nov, 02:38 · Archive

Nine in ten older Australians applying for government-subsidised aged care depend on social welfare payments.

A study examining the financial circumstances of more than 920,000 older Australians, with an average age of 82, found that nine in ten applying for government-subsidised aged care rely on social welfare payments. Social welfare payments account for 84 to 91 per cent of income for most applicants. About 60 per cent own their own home, making them what researchers call 'asset-rich, income-poor'.

The proportion of applicants reporting non-government income rose from 12 per cent in 2010 to 30 per cent in 2019, but the amounts remained relatively small for most. Associate Professor Stephanie Harrison of Flinders University said researchers 'really don't know how this is impacting how they access aged care'. The mandatory superannuation system's introduction in 1992 meant many of those surveyed missed years of contributions early in their working lives.

Harrison said making in-home care more accessible could save the nation money long-term by keeping people out of more expensive residential care. If asset-rich, income-poor older Australians end up moving to residential aged care earlier because of accessibility issues, that would cost the government more. A year after the federal government introduced a co-payment system for in-home care, the impact of the changes remains unclear.

How it is being reported

• 'Asset-rich' Aussies could struggle to afford aged careIn-home aged care risks becoming less accessible, with most applicants for subsidised assistance already receiving social welfare to get by.The West Australian · 1 Nov, 20:02
• 'Asset-rich' Aussies could struggle to afford aged careIn-home aged care risks becoming less accessible, with most applicants for subsidised assistance already receiving social welfare to get by.The West Australian · 1 Nov, 20:02
• 'Asset-rich' Aussies could struggle to afford aged careIn-home aged care risks becoming less accessible, with most applicants for subsidised assistance already receiving social welfare to get by.Perth Now · 1 Nov, 20:02

In this story: Flinders University · South Australian Health and Medical Research Institute · Stephanie Harrison · Australia

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