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A study of more than 920,000 Australians who applied for aged care from 2010 to 2019 found government welfare payments accounted for 84% to 91% of income for most groups. Researchers say the results point to a need to track older people’s income and financial security as the population ages and aged care rules change.
A study of more than 920,000 older Australians who applied for aged care between 2010 and 2019 found that social welfare payments made up 84% to 91% of income for most income groups, prompting researchers to call for continued monitoring of older people’s financial security as aged care needs grow. The findings are relevant to Australia’s ongoing aged care reforms, including the new Support at Home Program, which applies means testing to some nonclinical services.
The research was conducted by researchers at Flinders University and the South Australian Health and Medical Research Institute, using information from the Registry of Senior Australians Research Center. The people in the study had an average age of 82. The findings were published in the journal Public Health Research & Practice.
Social welfare payments made up a smaller share of income in the highest income group, at 59%. The study also found that the share of aged care applicants reporting some nongovernment income rose from 12% in 2010 to 30% in 2019. The source report says those amounts remained relatively small for most people; it does not provide a comparison of their value against care costs.
About 60% of applicants owned their home, according to the report. Lead author Associate Professor Stephanie Harrison said homeownership may coexist with limited regular income, and that a valuable property may not be readily available to pay for care. The study describes the applicants’ financial circumstances; it does not establish that welfare dependence caused delays in care or prevented people from receiving services.
Income Security as Care Needs Grow
The findings matter because Australia already has a large population using subsidized aged care: the source report puts the current number at about 1.5 million people, including users of home-based and residential care. As the number of older people grows relative to the working-age population, the financial resources available to pay for care and sustain services become an important part of aged care planning.
The results also point to a distinction between owning an asset and having regular income. A home may represent substantial wealth but cannot necessarily be converted quickly or easily into money for care. That issue has added relevance as the Support at Home Program introduces means testing for some nonclinical services. The study does not assess the program’s effects, but its findings offer a baseline for examining whether financial circumstances shape access or use.
For readers planning for retirement or supporting older relatives, the report highlights why homeownership alone may not reveal someone’s capacity to meet ongoing costs. It does not provide individual financial advice or predict what future retirees will receive.
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Retirement Income and Aged Care Reform
Australia’s retirement income system includes the Age Pension, compulsory superannuation and private savings. The researchers note that compulsory superannuation was introduced in 1992. Many of the older people in this study were near the end of their working lives when the system began, and therefore missed years of contributions compared with people who spent more of their careers under it.
The report frames the study against ongoing aged care reforms, including Support at Home. Its data, however, covers applicants from 2010 through 2019 and predates that program. It therefore describes the financial profile of an earlier cohort, rather than measuring how the new arrangements affect people applying for care today.
The research appeared in 2026 as “Socioeconomic profiles of older people entering long-term care: a national evaluation using the Registry of Senior Australians,” in Public Health Research & Practice. The source identifies the study’s DOI as 10.1071/pu25145.
““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
What the Study Cannot Establish
The study covers aged care applicants from 2010 to 2019, not all older Australians, and the reported figures do not show how financial circumstances have changed since then. The source material does not give the dollar amounts of welfare payments or nongovernment income, nor does it quantify the costs applicants faced.
It is also not clear from the report how the income patterns varied by age, care type, location or household situation. The study does not show whether homeownership affected people’s decisions to seek care, their eligibility for support, or the timing of services. Its results identify patterns, but do not establish the impact of the current Support at Home means test or predict whether future retirees will have adequate resources.
Monitoring Future Retiree Resources
Harrison called for continued monitoring of older people’s income and financial circumstances to assess whether future generations will have enough superannuation and other resources to support their needs, including aged care. Further research could examine how income, assets and other circumstances relate to when and how people use care, as well as whether access differs across financial groups.
The findings provide a reference point, but they do not set out a specific timetable for further research or a policy change. As aged care reforms proceed, evidence on applicants’ circumstances after 2019 will be needed to show how current patterns compare with the earlier cohort and whether new rules affect access to services.
Key Questions
What did the study find about income among aged care applicants?
For most income groups, social welfare payments accounted for 84% to 91% of income. In the highest income group, the figure was 59%.
Who was included in the research?
The researchers examined financial information for more than 920,000 people who applied for aged care from 2010 to 2019. Their average age was 82.
Does owning a home mean an older person can readily pay for care?
Not necessarily. About 60% of applicants owned a home, but lead author Stephanie Harrison said homeownership may not provide readily available income to meet care costs.
Does the study show how the Support at Home Program affects access?
No. The study’s data runs from 2010 to 2019, before the new program. The report says the findings are relevant to the reform but does not measure its effects.
What do researchers say should happen next?
Harrison called for ongoing monitoring of older people’s income and financial security, including whether future retirees have sufficient superannuation and other resources to support their needs and access aged care.
Source: medicalxpress.com
