As the cost of aged care continues to rise, many older Australians are being asked to contribute more toward the services they need, particularly under the government’s new Support at Home scheme. While assessments may indicate a person can afford higher contributions, the reality is that cash flow is not always readily available.
One option increasingly being considered is the Home Equity Access Scheme (HEAS). Administered by Services Australia, the HEAS allows eligible older Australians to access some of the equity in their home as a fortnightly income stream or a capped lump sum, without the need to sell their property or make regular repayments.
The scheme operates similarly to a reverse mortgage, with interest added to the loan balance over time. Importantly, a government-backed no-negative-equity guarantee ensures borrowers will never owe more than the value of their home. For people waiting for Support at Home services, or needing to cover out-of-pocket contributions, the HEAS can provide short- to medium-term financial flexibility.
Used carefully and with advice, equity release may help older people remain safely at home for longer, while supporting broader aged care policy goals. As with any financial decision, professional guidance is strongly recommended to ensure it aligns with individual circumstances and long-term plans.