Aged care sector leaders react to Budget 2026-27

The aged care sector has welcomed the Federal Government's additional $3.7 billion, but say the funding is well short of what is needed and many have commented on the lack of detail in the announcements.

Of the total allocated in the Budget 2026-27, $3 billion had already been announced, including $2 billion for the initial response to the Aged Care Accommodation Funding Review and $1 billion for changes to personal care funding for Support at Home.

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Tom Symondson, CEO Ageing Australia, the peak body for aged care providers, said the additional capital for aged care building "is not enough to get us building the 10,000 beds a year we need."

The peak body expects a further response from the Government to the Residential Aged Care Accommodation Pricing Review within 6-12 months, and will continue to advocate for more funding.

Support at Home: approaching a national emergency

BaptistCare CEO Charles Moore said the new capital support for building is "well below" what is needed.

"Without more capital support, the sector is not sustainable. We will not get close to building the more than 9,000 new beds needed each year, and demand is only going up," Moore said.

Though Aged Care Minister Sam Rae has clarified an extra 32,000 Support at Home packages will be allocated in 2026-27, Moore said the new system is "more complex and costly to run" and "care on the ground is getting harder to deliver".

It was also "disappointing" there was no additional funding or clarity about the future of the Commonwealth Home Support Program (CHSP) in the Budget.

Tom echoed Charles' concerns, saying the additional Support at Home funding "falls well short of the amount required" and the "lack of new funding" for the CHSP is a "concern".

“This is fast approaching a national emergency. At last count, more than 200,000 older Australians were either waiting for a Support at Home package or waiting just to be assessed,” Tom said.

“This funding clearly won’t meet increased demand over the next 12 months, let alone clear the backlog. This creates a real risk to those older people who are waiting for care and increases the chances they will experience poor outcomes or hospitalisation while they wait to get to the front of the queue.”

Charles said more detail about the new capital meausures and Support at Home is needed.

Budget risks leaving older Australians worse off

The Older Persons Advocacy Network (OPAN), the peak body for aged care consumers, said the Budget leaves "many challenges" within the aged care system and risks older people "being worse off".

OPAN has ongoing "urgent" concerns, including about "unacceptably long" aged care assessment wait times, with the last data showing Australians are waiting a year to receive services, and the "inadequate" number of Support at Home packages being approved. The continuation of 60% Interim funding also "risks older people cutting crucial services and not receiving the full care that they need".

OPAN is disappointed issues with the Integrated Assessment Tool (IAT) have not been addressed and would like to see additional investment in dementia care, on top of the $224.3 million investment in the Budget. 

“This is disappointing news for the sector and older people, especially since we have an ageing population, with more people projected to need government funded assistance going forward,” said OPAN Director Policy, Education and Systemic Advocacy Samantha Edmonds.

“While removing out-of-pocket costs for some personal care services is a welcome move and will improve livelihoods, it’s one of many issues being continually raised by older people and advocates that requires urgent action.

“We cannot risk having older people be denied vital support or be forced to wait more than eight months for funding, because of red tape or a computer algorithm assessing their care needs incorrectly."

Changes to End of Life Pathway welcomed

The Government's move to extend the End of Life Pathway, allowing a second $25,000 over 12 weeks if the recipient exceeds their anticipated life expectancy, has been welcomed.

It's a "wonderful - very human - measure is the expansion of the end of life pathway under Support at Home," Alex Lynch, Director of Aged and Community Care Policy, Catholic Health Australia, wrote of the decision.

Palliative Care Australia also welcomed the change. “People do not experience dying according to a timetable,” said Palliative Care Australia Interim CEO Simon Waring. 

“This change is a practical and welcome step that should give people, families and providers greater confidence that support will not simply fall away when someone lives longer than expected.”