Heidri Brook, a Financial Advocacy Officer with Aged and Disability Advocacy Australia (ADA Australia), OPAN’s Queensland network member.
Most people do not anticipate needing assistance with their finances. But with the rising cost of living and changes to the aged care funding model under the new Aged Care Act, some older people—especially those new to the system—are finding it harder to manage. In some cases, this means struggling to pay for the care they need.
Thankfully, financial hardship assistance is available through the Australian Government. This support is designed to ensure that older people can continue to access aged care services, even when financial challenges arise through no fault of their own.
What is financial hardship assistance?
Financial hardship assistance can help you if you can’t afford to pay for your aged care costs for reasons beyond your control. If you are eligible, the Australian Government will pay some or all of your aged care costs.
Tips for making a financial hardship claim
Heidri Brooks is part of a national team of specialist financial advocacy officers working across OPAN’s member organisations. Heidri has an accounting degree, a diploma in financial planning, and financial experience within business banking and residential aged care.
She has the following tips for those who may need to seek out financial hardship assistance.
Make sure you qualify
Qualifying for financial hardship assistance comes in a few steps. Once you have completed and received your aged care means assessment from Services Australia, you need to work out if you are eligible for financial hardship assistance. Heidri advises going through the checklist on the first page within the Aged Care Claim for financial hardship assistance form.
You will need to meet a few basic criteria, including total assets less than $44,811 (unrealisable assets like the house you live in) and that you have not gifted more than $10,000 in the previous 12 months or more than $30,000 in the previous 5 years. If after you have paid all your essential expenses for day-to-day living and are left with less than 15% of the basic age pension amount (or $157.70 per fortnight) then you may quality for assistance.
‘If you meet all of those, then yes, you can start applying for financial hardship assistance. If you don’t, Services Australia may not consider the application’, says Heidri.
She also recommends keeping a note of important dates, such as when your package starts, so that you can trace the hardship to that date.
Work out your expenses
Once you have determined that you meet the basic criteria for a financial hardship assistance claim, Heidri recommends working out a fortnightly budget of what your current essential expenses are to prove that you have less than 15% left of your pension. Services Australia will assess your essential expenses. These are the costs you have in your day-to-day living, such as: aged care fees and charges, medical and pharmaceutical expenses, insurances, bills and utilities, accommodation costs and home maintenance, transport, and groceries. Understanding what your expenses are will help you collect the relevant documentation you need.
Get organised
Start collecting all the documentation you need to prove your essential expenses. Heidri suggests keeping a physical file of the documentation you may need to provide in one spot, such as medical invoices, receipts and bank statements.
‘The more information you can give them, the better. Keep all your receipts or anything you’ve got an account with that you could log in and print off statements from’, says Heidri.
Knowledge is power
Working out your budget will help the process go smoother. It’s also important you have a basic understanding of the overall process, and timeframes involved with applying for financial hardship assistance.
OPAN’s Self-advocacy toolkit explains aged care costs, practical tips and where to go for further help. This will be increasingly important to understand your aged care fees and costs when the new aged care funding model comes into effect. There are also financial advocacy officers like Heidri in every state and territory who can help you to better understand your aged care costs and provide you with the help and tools you need to apply for financial hardship assistance.
Services Australia also has a free Financial Information Service (FIS). FIS officers can help you understand your finances more generally and make informed financial decisions.
It’s not a lifelong thing
Financial hardship assistance applies for a finite period. Services Australia will write to you and your aged care provider to tell you how long it will last. If you need ongoing help, you will need to lodge a new claim before your assistance ends.
‘Check your Services Australia letters for the financial hardship assistance expiry date. You need to make sure that you’ve resubmitted or updated your details and reapplied for financial hardship assistance if needed well before this date.’
Heidri also suggests being upfront with your situation. ‘It’s good to have that honest and open communication, which has worked in favour for our clients’.
For further information
To understand the changes to in-home aged care costs, register for OPAN’s latest webinar Support at Home costs and fees.
Call the Aged Care Advocacy Line on 1800 700 600 if you need support with your aged care services.
