Have applications for financial hardship in aged care risen?

The number of people applying for financial hardship jumped about 60% in October and November, with the new Aged Care Act taking effect on 1 November 2025.

Increased personal contributions to the cost of aged care accommodation and daily living expenses and most Support at Home participants will need to contribute to the cost of independence and everyday living services.

Fees are dependent on a person's income and assets. Full pensioners are required to pay up to 17.5% of everyday living services, such as cleaning and gardening, and 5% of independence services, including showering.

An applicant to the Government's financial hardship assistance can reduce or exempt care recipients. In October, the number of hardship application surged 50% to 858. Two weeks into November, and it looks as though the total number for the month will be closer to 900, with 454 applications received in the first two weeks.

It was anticipated applications would increase, and Services Australia, which assessed the claims, increased staff in anticipation.

However, wait times for processing the applications have edged higher. In 2024-25, the standard 28-day processing time for applications was achieved 97% of the time, but so far this year, only 95% of claims are meeting the standard.

While the latest data does not show what percentage of claims were granted in October/November, of the 1,237 claims processed in the September quarter (July to September 2025), 76% were granted.

Fees out of reach for pensioners

Fiona Parish, who operates Queensland home care service Far North Cares, has seen the impact of higher charges up close - and is helping her clients with hardship assistance applications.

One client was approved for a Home Care Package a few months ago after having a stroke and losing significant cognition. Initially, the woman and her partner struggled to adapt to their changed circumstances. The Home Care Package ensured she was taking her medication daily, is driven to a blood test fortnightly, her house is cleaned, and a support worker is buying food.

"The doctor is over the moon," Fiona said. "But she's never had to pay for her services."

But from 1 November, her situation changed. Because her Home Care Package was approved after 12 September 2024, she is captured by the new fees.

"She might have to pay up to $140 a week," Fiona said.

By contrast, her partner, who was already on a Home Care Package on 12 September last year, continues to have his supports fully Government funded.

Fiona has helped her client apply for financial hardship support, and a couple of weeks later is still waiting on a decision.

While the application is in process, no fees are due. However, if the application is rejected, the accrued fees will have to be paid.

Minister monitoring demand

Amid concern that higher charges could see older Australians opt out of essential care, Aged Care Minister Sam Rae said earlier this month he will be "monitoring" the impacts of higher fees on the independence care category.

"I'm very focused on making sure that we get the best possible clinical outcomes for older people. And where I form a view that we're not achieving that ambition, we'll make whatever changes are necessary," he said.