Study Reveals Over 90% of Aged Care Applicants in Australia Rely on Welfare Payments
A new study analyzing over 920,000 aged care applications in Australia from 2010 to 2019 found that most older applicants depend heavily on social welfare for income. The research highlights growing concerns about the sustainability of current support systems as the population ages and calls for improved financial planning and equitable access to care services.
A 2026 study led by Flinders University and the South Australian Health and Medical Research Institute (SAHMRI) analyzed over 920,000 aged care applications in Australia between 2010 and 2019, revealing that 84% to 91% of applicants—mostly aged 82 on average—relied primarily on social welfare payments for income. The research, based on data from the Registry of Senior Australians (ROSA) Research Center, found that only those in the highest income bracket reported less than 60% reliance on welfare, while approximately 60% of applicants owned their homes but still faced low regular income. This highlights a growing gap between asset ownership and sustainable income, particularly for older Australians who missed out on decades of compulsory superannuation contributions due to its introduction in 1992. The proportion of applicants with nongovernment income rose from 12% in 2010 to 30% by 2019, yet the amounts remained modest. These findings come amid ongoing reforms like the new Support at Home Program, which introduces means-testing for nonclinical home care services. Lead author Associate Professor Stephanie Harrison emphasized the need for better financial planning and equitable access to care, warning that current systems may struggle as the population ages. The study’s authors call for continued monitoring of retirement income trends, especially regarding superannuation adequacy for future retirees.
The findings underscore a systemic tension in Australia’s aging infrastructure: while many older adults own homes—assets often assumed to provide financial security—their actual income remains precarious. This could strain the Age Pension and other welfare programs as demand rises, particularly if future retirees have insufficient superannuation savings. The study may prompt broader scrutiny of how retirement income models fail to account for long-term care costs, especially for those with high asset but low-income profiles. Comparable to the U.S. Medicare system’s challenges in balancing cost and access, Australia may face similar pressures unless policy evolves. The introduction of means-testing for home care services could disproportionately affect middle-income retirees who own homes but lack regular income, potentially limiting their access to care despite financial need. What remains uncertain is how policymakers will balance fiscal sustainability with equity, especially as demog