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Financial Help During Serious Illness in Australia

When a serious diagnosis arrives, the financial questions can be just as overwhelming as the medical ones. This guide maps the main sources of financial support available in Australia — and what to check first. If you'd rather have a plan built around your situation, answer a few questions and we'll build one around you →

Check your insurance immediately

Do not cancel or change any insurance cover while you're working out what you have. Some policies pay out on diagnosis itself — cancelling now could forfeit an entitlement you didn't know about. Contact each insurer once you've confirmed what you hold.

The policies most likely to be relevant after a serious diagnosis are:

Default insurance inside your superannuation is easily overlooked. Most Australians have life insurance and TPD cover provided as a default benefit through their super fund — many don't know it's there. Some funds also include income protection (called "salary continuance insurance") as a default. Log in to your super fund's member portal, check your annual statement, or read your fund's PDS to confirm what cover you hold. Then call the fund's insurance team to ask how to make a claim. If you have multiple super accounts from previous jobs, check each one.

Superannuation early release

Superannuation is normally preserved until retirement age, but two pathways allow early access after a serious diagnosis. Both are strictly regulated.

Compassionate grounds (ATO-administered)

You can apply to the ATO through myGov to release super early on compassionate grounds. Approved grounds include: medical treatment or medical transport for you or a dependant that you cannot pay for any other way; modifications to your home or vehicle to accommodate a disability; palliative care for yourself or a dependant; costs associated with the death, funeral, or burial of a dependant; and preventing your mortgage lender from foreclosing on your home.

The ATO assesses the application and approves a specific dollar amount. You then instruct your super fund to release that amount. Apply at my.gov.au under ATO online services.

Severe financial hardship (super fund-administered)

If you have been receiving eligible government income support payments (such as JobSeeker) continuously for at least 26 weeks, and you are unable to meet your reasonable immediate family living expenses, you may be able to withdraw up to $10,000 (minimum $1,000, unless your balance is lower) in any 12-month period. This is applied for directly through your super fund — the process differs from the ATO compassionate grounds pathway.

If you are on a government income support payment and approaching the 26-week mark, ask your super fund about this option — the timing of the application matters.

Medicare — what's covered and what costs

Medicare covers: GP visits; specialist consultations when referred by a GP; diagnostic imaging and pathology tests; and treatment as a public patient in a public hospital. You will need a GP referral to see a specialist under Medicare.

Bulk billing means your GP (or other provider) charges Medicare directly and you pay nothing out of pocket. Not all GPs bulk bill all patients, and bulk billing rates vary by location and practice. If cost is a concern, ask when booking whether the practice bulk bills.

For private specialist consultations, there is often a gap between the Medicare rebate (based on the Medicare Benefits Schedule) and what the specialist charges. This gap can be significant — ask the specialist's rooms about their fees before your appointment, and ask whether they participate in a "no gap" or "known gap" arrangement with any private health insurers.

The Medicare Safety Net applies once your out-of-pocket costs for out-of-hospital MBS services exceed a threshold in a calendar year. After that, Medicare covers a higher proportion of your costs for the remainder of the year. There are two thresholds — a lower one for concession card holders and those eligible for Family Tax Benefit Part A, and a higher one for everyone else. Services Australia tracks your out-of-pocket costs automatically, but you should register your family as a unit at servicesaustralia.gov.au to pool family costs toward the threshold.

The Pharmaceutical Benefits Scheme

The PBS subsidises the cost of many prescription medicines. You pay a co-payment up to a maximum per item — either the general rate or the lower concessional rate (for holders of a Health Care Card, Pension Concession Card, or Commonwealth Seniors Health Card). Rates are indexed and change annually; check the current co-payment amounts at pbs.gov.au.

The PBS Safety Net applies once your total PBS co-payments in a calendar year reach a threshold. After that point, further PBS medicines are free for concession card holders, and the co-payment drops substantially for general patients for the rest of that calendar year. The Safety Net resets on 1 January each year.

Your pharmacy tracks your running total toward the Safety Net. To make this work: fill all your PBS prescriptions at the same pharmacy where possible. If you use multiple pharmacies, your totals won't be pooled. You can also ask your pharmacy for a PBS Safety Net card once the threshold is reached — it confirms your entitlement to reduced costs.

Not all medicines are PBS-listed. Some cancer therapies and newer drugs are accessed through the Highly Specialised Drugs program (Section 100) or via the Pharmaceutical Benefits Advisory Committee listing process. Ask your specialist whether your prescribed medicines are PBS-listed and whether alternatives exist if they are not.

The NDIS — for permanent significant disability

The National Disability Insurance Scheme (NDIS) provides funded support — therapy, equipment, daily living assistance, home modifications, transport, and community access — for people with a permanent and significant disability. It is administered by the National Disability Insurance Agency (NDIA), which is separate from Services Australia.

Eligibility requires that your disability arises from a permanent impairment that substantially reduces your functional capacity in one or more areas of daily life (communication, mobility, self-care, self-management, learning, or social and economic participation). Not all serious diagnoses qualify — conditions that are episodic, fluctuating, or expected to improve often do not meet the permanency requirement.

If you believe you may qualify, speak with your GP or specialist about whether your condition is likely to meet the permanent impairment criteria before applying. An access request can be made by calling the NDIA on 1800 800 110 or visiting ndis.gov.au. If approved, you will work with a planner to build an NDIS plan that funds the supports you need.

The NDIS funds support services — it is not income support and does not replace Centrelink payments. If you receive NDIS funding and also need income support, you apply separately to Services Australia for JobSeeker Payment or Disability Support Pension.

Services Australia hardship provisions

If you are already receiving a Centrelink payment and need immediate help with a large expense, two provisions may apply:

If you are waiting for a new Centrelink payment to start and are in financial crisis, ask Services Australia about an urgent payment — in exceptional circumstances, a payment can be made ahead of schedule.

Your bank and other lenders

Australian banks that have signed the Australian Banking Association (ABA) Banking Code of Practice are required to consider requests for financial hardship assistance. If illness has affected your ability to meet repayments — on a mortgage, personal loan, car loan, or credit card — contact your bank's financial hardship team directly and ask what options are available.

Options banks commonly offer include: deferring repayments for a period; switching to interest-only repayments temporarily; restructuring the loan to reduce monthly payments; or extending the loan term. The bank must genuinely consider your application. If your application is declined or you're unhappy with the outcome, you can complain to the Australian Financial Complaints Authority (AFCA) — afca.org.au or 1800 931 678.

Non-bank lenders (such as credit unions, building societies, and finance companies) are covered by the National Credit Code, which includes similar hardship obligation provisions. If you have loans with multiple lenders, contact each one's hardship team separately.

Ask specifically for the hardship team or financial assistance team when you call — general customer service staff may not be familiar with the full range of options available.

Your tax situation

A serious illness often means a significant drop in income mid-financial year. This can work in your favour at tax time — but you may be able to access the benefit sooner.

If your income this year will be lower than your employer has been withholding tax for, you will receive a tax refund when you lodge your return. To get cash sooner rather than waiting until after 30 June, you can apply to the ATO for a PAYG withholding variation — this asks your employer to withhold less tax from each pay period based on your projected lower income. Download the form at ato.gov.au or call the ATO on 13 28 61.

If you have a HELP, HECS, or VET Student Loan debt, repayments are income-based — compulsory repayments only apply if your repayment income exceeds the annual threshold. If your income drops below that threshold due to illness, no compulsory repayment will be required in that income year. There is no formal application needed; the system adjusts automatically when you lodge your tax return.

If you have an existing ATO tax debt, contact the ATO to discuss a payment plan or to ask about remitting interest and penalties in hardship circumstances. The ATO has a dedicated hardship framework — call 13 28 61 and ask about the financial hardship process.

Condition-specific grants and assistance

Many condition-specific charities and peak bodies in Australia offer financial grants, transport assistance, subsidised accommodation near treatment centres, or help with specific costs (such as wigs during chemotherapy). The availability and size of grants varies significantly by condition and by state.

Search for the peak body or charity relevant to your specific condition — most maintain a directory of support services including financial assistance. Your specialist or a hospital social worker can also point you to relevant organisations.

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More Australia diagnosis guides

What to do after a serious diagnosis → Your work and income after a serious diagnosis → Making insurance claims after a diagnosis →

This guide provides general information only — not legal, financial, medical, or benefits advice. Eligibility rules, payment rates, and thresholds change regularly. Verify current details with official sources before making decisions. Information current as of June 2026.