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A 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 funding rules change; the study does not establish whether future retirees will have enough income to meet care costs.
A study of more than 920,000 Australians who applied for aged care between 2010 and 2019 found that social welfare payments accounted for 84% to 91% of income for most applicants, highlighting questions about older people’s financial security as demand for care grows. The research, published in Public Health Research & Practice, does not determine whether the welfare system can meet future needs, but its authors call for continued monitoring of older people’s income and access to care.
Researchers from Flinders University and the South Australian Health and Medical Research Institute examined the financial circumstances, income sources and homeownership of aged-care applicants in national data. The group had an average age of 82. For applicants outside the highest income group, social welfare payments made up between 84% and 91% of income. In the highest income group, the share was 59%.
The study also found that the proportion of applicants reporting income from non-government sources rose from 12% in 2010 to 30% in 2019. The researchers said the amounts were relatively small for most people reporting such income. About 60% of applicants owned their homes, a finding the study’s lead author said should not be read as evidence that they could readily use housing wealth to pay for care.
The report draws on South Australia’s Registry of Senior Australians Research Center and was published in 2026. Its findings concern people who applied for aged care during the study period, not every older Australian or all people currently receiving services. The authors say the research provides a basis for further work on how income and financial security shape when and how older people use care.
Income Security and Aged Care Costs
The findings matter because they show that most applicants in this large study relied mainly on public payments, while homeownership did not necessarily mean having a regular income available for care expenses. That distinction may be relevant as governments weigh how to fund aged care and how fees affect access.
Australia has about 1.5 million people accessing government-subsidized aged care, including services at home and residential care, according to the source report. Researchers argue that more evidence is needed to support equitable services and identify whether people can get care when they need it, regardless of their financial circumstances. The study describes applicants’ finances; it does not measure unmet need or prove that current support is inadequate.
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Reforms Meet an Ageing Population
The research arrives amid ongoing aged-care reforms, including the Support at Home Program, which introduces means-testing for nonclinical services delivered at home. The source report says the study’s findings are relevant to these changes, but does not assess the program’s effects or predict how its rules will change care use.
Australia’s retirement income system includes the Age Pension, compulsory superannuation and private savings. Superannuation was introduced in 1992, meaning many people already near retirement during the study period missed years of contributions. The researchers say that history helps explain why current applicants’ income patterns may not match those of later generations, who may have had more time to accumulate superannuation.
“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 Applicant Data Cannot Show
The study covers people who applied for aged care from 2010 through 2019. Its results do not establish the financial position of all older Australians, explain why individuals applied, or show whether applicants received the amount or type of care they needed. The source report also does not provide a forecast of future aged-care demand or the funding required to meet it.
It remains unclear whether future retirees’ superannuation and other income will be sufficient for care costs, and how the Support at Home Program’s means-testing will affect access or household finances. The researchers call for continued monitoring; the supplied report does not cite a specific timetable or a government response to the findings.
Monitoring Future Retirees’ Resources
The researchers call for further study of how older people’s income, assets and financial security affect their use of aged care. Ongoing monitoring could help show whether later generations, with different superannuation histories, have enough regular income to support care needs.
As the Support at Home Program and broader aged-care reforms proceed, their effects on costs and access remain a key issue to track. The study offers a baseline from applicants’ records through 2019, but the source report does not specify when newer data or an assessment of the reforms will be available.
Key Questions
What did the aged-care study find?
Among more than 920,000 people who applied for aged care between 2010 and 2019, social welfare payments accounted for 84% to 91% of income for most groups. The share was 59% for applicants in the highest income group.
Does the study show that Australia’s welfare system cannot meet future aged-care needs?
No. The research describes applicants’ income and homeownership during 2010–2019. It does not forecast future demand, measure whether care needs went unmet, or establish whether welfare support will be sufficient.
Why does homeownership not necessarily mean someone can afford care?
A home is an asset, but it may not provide regular income or readily available money for care-related costs. The study’s lead author said homeownership may leave some older people asset-rich but income-poor.
What change to aged care is relevant to the findings?
The source report points to the Support at Home Program, which introduces means-testing for nonclinical services at home. The study did not assess how the program will affect people’s costs or access to care.
Source: medicalxpress.com
