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Can Australia's social welfare system handle future aged care needs?

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Can Australia's social welfare system handle future aged care needs?

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As Australia's population ages, nine in 10 older Australians applying for aged care receive social welfare payments. Researchers from Flinders University and the South Australian Health and Medical Research Institute (SAHMRI) have conducted a new study that examined the financial circumstances, sources of income and homeownership of more than 920,000 older people (average age 82) who applied for aged care between 2010 and 2019.

The research highlights the need for more to be done to measure and maintain adequate, accessible and stable income support systems for older people as the number of older people grows relative to the working-age population.

The findings are published in the journal Public Health Research & Practice.

The new study found that social welfare payments accounted for between 84% and 91% of income for most older Australians seeking aged care. Only those in the highest income group reported a lower proportion of social welfare payments making up their total income (59%).

In Australia, approximately 1.5 million people currently access government-subsidized aged care services, including at-home care and residential aged care.

The findings from South Australia's Registry of Senior Australians (ROSA) Research Center are relevant in light of the ongoing aged care reforms, including the new Support at Home Program , which introduces means-testing for nonclinical services at home, says lead author associate professor Stephanie Harrison, from Flinders University and SAHMRI.


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