Most Aged Care Applicants Rely on Welfare

A study of more than 920,000 older Australians applying for subsidised aged care finds most depend on social welfare payments for income.

Updated on Nov. 1, 2026 in Eldercare

Most Aged Care Applicants Rely on Welfare

Live Poll

Do you think the government's aged care cost rules are fair to older Australians who own homes but have little income?

Researchers from Flinders University and the South Australian Health and Medical Research Institute found nine in 10 older Australians applying for government-subsidised aged care rely on social welfare payments. The study examined applications made between 2010 and 2019.

Why it matters

Many applicants were near the end of their working lives and missed out on years of superannuation contributions, which were made mandatory in 1992. The findings bear on how accessible aged care remains for people with little non-government income.

The study covers more than 920,000 applicants, with an average age of 82, and about 60 per cent of those seeking home-based care own their home. Whether the newer co-payment system is delaying access remains unclear.

The players

Flinders University

A public university in Adelaide, South Australia, whose researchers led the study of aged care applicants' income.

South Australian Health and Medical Research Institute

A South Australian medical research body that co-authored the study alongside Flinders University researchers.

The details

The researchers analysed government records of each applicant's income sources and assets, classifying participants by whether their income came from welfare or non-government sources. Only a small cohort of applicants seeking home-based care had substantial income.

- 1992: Mandatory superannuation system introduced.
- 2010 to 2019: Period of applications studied.
- One year before publication: Federal co-payment system for in-home care introduced.

Big Picture

Mandatory superannuation was introduced in 1992 to build retirement savings, yet this study shows that many older Australians now seeking aged care missed out on years of contributions. The welfare reliance found here reflects that gap.

Older Australians weighing aged care options should check how the in-home care co-payment applies to their circumstances. People with little non-government income may find that welfare payments are their main source of support when arranging care.

The takeaway

Planning for retirement income matters most early in working life, since gaps in superannuation contributions are hard to recover later. Readers approaching aged care should weigh their income sources and assets before choosing a care pathway.