Aged care costs for people who receive compensation
If you receive compensation for an illness or injury that caused you to need aged care, you will need to use that money to help pay for the cost of your care.
How does compensation affect my aged care costs?
The Australian Government subsidises aged care so that everyone can afford to get the care they need. If your compensation claim includes payment for help at home or an aged care home, that money should go towards paying for your care.
Receiving compensation could mean that the Australian Government changes its contribution to your aged care costs. This means you may have to:
- pay back some of the money that the government has paid on your behalf
- use your compensation to pay for your future care needs.
What should I consider in my compensation claim?
It is important that you and/or your legal representative consider both your past and future aged care costs as part of your compensation claim. The amount needed to pay for your past and future care costs will vary depending on a number of factors.
For more information about future aged care costs, email the Department of Health.
Find out more about how past aged care costs are repaid by emailing Services Australia.
How do I declare compensation money?
If you receive compensation, you need to let the government know so that they can work out how much you can pay towards your aged care costs.
Not yet receiving aged care services
If you have received compensation but haven’t yet started receiving aged care services, you will need to complete an income assessment for help at home, or a means assessment for an aged care home. The forms that you complete will ask you about any money you have received as compensation. Find out more about income and means assessments.
Already receiving aged care services
If you have received compensation and are already receiving subsidised aged care, you will need to revise your original income or means assessment. It is your responsibility to contact the department that did your assessment. This could be either Services Australia or the Department of Veterans’ Affairs (DVA).