Aged care sector: Govt's $3BN "life changing"
Aged care leaders have welcomed the Government's additional $3 billion for the sector - but say more is needed to meet the needs of the burgeoning ageing population.
Federal Health Minister Mark Butler yesterday announced the additional funding, including subsidies aimed at encouraging the building of new aged care beds, additional support for homes with more than 60% supported residents, and $200 million for new Specialist Dementia Care Units.
For Support at Home, showering, dressing and continence care will be classified as clinical care and fully funded by the Commonwealth.
The Minister also outlined tough reforms to the NDIS aimed at stalling runaway costs, saving $15 billion by 2030.
Ageing Australia: More needed to keep beds open
The peak body for aged care providers, Ageing Australia, welcomed the changes as a "vital first step" but said more work is needed to ensure Australia builds enough residential aged care beds.
"Much more" is needed to build the required 10,000 additional beds annually over the next two decades, said CEO Tom Symondson, adding the Government also needs to more to "make sure existing beds don’t close". Last year, Australia built only 800 beds.
“The $5 increase for existing beds announced today is less than half the $13 gap between current funding and the cost of providing accommodation," Tom said.
The peak "eagerly awaits" the Government’s promised announcement on home care packages, expected with the May Budget, as more than 200,000 either wait for a package or to be assessed.
IG: More needed on early intervention
The Inspector-General of Aged Care Natalie Siegel-Brown issued a statement saying the removal of co-payments for showering, dressing and continence support under Support at Home from 1 October will have a "real impact" in alleviating the pressure caused by home care co-payments.
Since 1 November 2025, when the co-contributions were introduced, she has heard "heart-breaking" stories about older people having to choose between showering and meals because they could not afford to do both.
"This is an incredibly important and life-changing decision by the Government, and I congratulate them on listening to the pleas of older people, their families, and advocates across the sector," Natalie said.
The decision is recognition that "allowing older people to go without essential daily support" drives "worse health outcomes and higher costs" across health and aged care systems.
She encouraged the Government to explore further options supporting independence and early intervention that would "deliver the biggest bang for the aged care buck" - as well as the broader health budget.
CHA: Changes will benefit Not For Profits
Catholic Health Australia (CHA), the faith-based peak representing approximately 12% of Australia's aged care homes and 20% of home care services, said the proposed increase to the Accommodation Supplement and additional payments for homes where more than 60% of residents are supported are reforms they have called for repeatedly.
The changes will overwhelmingly benefit residents of Not For Profit facilities, including those operated by Catholic providers which have a strong focus on supporting the most vulnerable older Australians, CHA said.
"Providers caring for higher numbers of supported residents face significantly greater financial and operational pressures, driven by higher care costs and lower accommodation revenue," said Alex Lynch, Director of Aged Care at Catholic Health Australia.
"This extra support is vital to ensuring disadvantaged residents get the care they need."
