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A national study of more than 920,000 Australians who applied for aged care from 2010 to 2019 found government social welfare payments accounted for 84% to 91% of income for most applicants. The researchers say continued monitoring is needed as the population ages and aged care reforms change how some services are funded.
A study of more than 920,000 Australians who applied for aged care between 2010 and 2019 found that social welfare payments made up 84% to 91% of income for most applicants, raising questions about whether older people will have stable resources as demand for care grows. Researchers from Flinders University and the South Australian Health and Medical Research Institute said the findings support continued monitoring of income and access as aged care services and funding arrangements change.
The study, published in Public Health Research & Practice, used data from the Registry of Senior Australians Research Center. Participants had an average age of 82. The researchers examined their financial circumstances, income sources and homeownership, and found that only applicants in the highest income group received a lower share of their total income from social welfare: 59%.
The share of applicants reporting some nongovernment income rose from 12% in 2010 to 30% in 2019, but the researchers said the amounts remained relatively small for most people. About 60% owned a home. Lead author Associate Professor Stephanie Harrison said that combination can leave older people with valuable assets but limited regular income; owning a home does not necessarily make money available to cover care costs.
About 1.5 million people in Australia access government-subsidized aged care, including services at home and residential care, according to the report. The study describes the finances of people who applied for care during its 2010–19 period. It does not establish what their circumstances will be under current or future aged care arrangements.
Income Security Shapes Care Access
The findings matter because regular income can affect how people meet care-related costs, while homeownership alone may not provide readily available funds. Harrison said the results could help guide research into how financial circumstances affect when and how older people use aged care, and support the development of services that are more targeted and equitable.
They also point to a policy challenge as Australia’s population ages relative to its working-age population. The researchers argue that policymakers need better ongoing information about whether income support remains adequate, accessible and stable for older people. The study does not show that the welfare system has failed, nor does it measure whether applicants received care they needed. It identifies a reliance on welfare among this group and a need to track how that may change.
The issue is relevant to current reform because the Support at Home Program introduces means-testing for nonclinical home services, Harrison said. The study offers evidence about applicants’ past income profiles, but it does not evaluate the effects of that program or determine how its rules will affect individuals.
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Aged Care Finances Over Time
Australia’s retirement income system includes the Age Pension, compulsory superannuation and private savings. The study’s authors note that compulsory superannuation began in 1992. Many of the older people in their data were near the end of their working lives when it was introduced, meaning they had fewer years in which to build superannuation through contributions than later generations may have.
The researchers looked at aged care applicants over a decade, from 2010 through 2019. Their finding that more applicants reported nongovernment income by the end of that period does not, on its own, show that incomes rose enough to meet care needs: the report says those amounts remained relatively small for most people. The study was published in 2026 and is based on earlier applicant data, so it provides a baseline rather than a current snapshot of every person entering care.
“This study provides a foundation to support further research into how older people’s income, financial security and other circumstances impact when and how people use aged care.”
— Associate Professor Stephanie Harrison, Flinders University and SAHMRI
Future Incomes Remain Unknown
The research does not answer by itself whether Australia’s social welfare system can meet future aged care needs. It examines people who applied for care between 2010 and 2019, not the finances of future retirees, and does not forecast aged care demand, government spending or the adequacy of future pension and superannuation income.
The supplied findings also do not specify how many applicants were approved for care, what services they received, or how their income affected access. The effect of the Support at Home Program’s means-testing on people with different incomes and assets remains untested by this study. Researchers say more monitoring is needed to assess future generations’ financial circumstances and their ability to access care.
Monitoring Future Retiree Finances
The researchers call for ongoing measurement of older people’s income, financial security and circumstances as later generations enter retirement. That work could help clarify whether superannuation and other income sources provide enough support for care needs, and how financial circumstances shape the timing and use of services.
As aged care reforms proceed, the impact of the Support at Home Program’s means-testing will need to be assessed using evidence about how its rules operate for older people with different income and asset profiles. The study sets out a concern and a research direction; the source material does not provide a timetable for further studies or an official government response.
Key Questions
What did the study find about aged care applicants’ income?
For most applicants in the study, social welfare payments accounted for 84% to 91% of income. The figure was 59% for applicants in the highest income group.
How many people and what period did the research cover?
The researchers examined the financial circumstances of more than 920,000 people who applied for aged care from 2010 to 2019. Their average age was 82.
Does the study prove Australia cannot fund future aged care?
No. The study reports income patterns among past aged care applicants. It does not forecast future costs or establish whether the welfare system can meet future demand.
Why does homeownership matter to the findings?
About 60% of applicants owned a home, but the researchers cautioned that property ownership may not translate into regular income or money readily available for care costs.
What do the researchers say should happen next?
They call for ongoing monitoring of retirees’ income and financial security, including whether future generations have sufficient superannuation and other income to support their needs and access aged care.
Source: medicalxpress.com
