Budget ‘falls short’ on aged care assessment and Support at Home

The federal budget has injected funding into aged care, health system reform and cost‑of‑living relief, drawing mixed reactions from sector peak bodies. Although they recognise the significance of the investment, many have responded by reiterating that major gaps remain for older Australians and people living with dementia.

Treasurer Jim Chalmers told Parliament the Budget delivered record funding for healthcare, including the $3 billion for aged care, announced last month.

“We’ve made progress getting the Budget in much better shape at the same time as we’ve found room to fund the services and security Australians rely on,” Mr Chalmers said in his budget speech on Tuesday night.

“This Budget includes record investments in healthcare, defence, and economic resilience.”

The government’s aged care package totals $3.7 billion, which includes creating 5,000 additional aged care beds each year, faster access to Support at Home packages, and the removal of out‑of‑pocket costs for personal care services such as showering and dressing.

Budget papers show $1.7 billion will incentivise the construction of the extra beds, including $606.5 million for new capital subsidies, 20 additional Specialist Dementia Care units, and an expansion of the Hospital to Aged Care Dementia Support Program from 11 to 20 sites.

A further $1.1 billion is provisioned to increase and restructure the Accommodation Supplement.

Catholic Health Australia (CHA) welcomed the investment, saying the expansion of Support at Home packages is essential to reduce wait lists.

“Every additional package funded means someone’s parent or grandparent getting the support they need to age at home with dignity,” CHA’s director of aged care Alex Lynch said

“Accommodation funding simply hasn’t been covering the cost of maintaining buildings and keeping facilities safe and comfortable.”

The Australian Nursing and Midwifery Federation (ANMF) also supported the capital investment but warned that infrastructure alone is not enough, advocating for increased workforce supports.

“Without funding to support the recruitment and retention of skilled aged care nurses and carers we won’t have the staff needed to provide the actual care,” ANMF federal secretary Annie Butler said.

Dementia

Dementia Australia (DA) has welcomed the announcement of targeted dementia funding, including $200 million to expand Specialist Dementia Care Program units and the Hospital to Aged Care Dementia Support Program, $6.7 million for respite grants, and $11.5 million for continued operation of the National Centre for Monitoring Dementia.

DA chief Professor Tanya Buchanan described the budget as making “important steps forward” but warned that the disease requires far greater investment.

“It is vital the Commonwealth government fully invests and implements the 10-year National Dementia Action Plan,” she said.

She said that without significant intervention, the number of Australians living with dementia is expected to rise from 446,500 in 2026 to more than one million by 2065.

“As the number of Australians living with dementia increases, without significant additional investment services will not be able to keep up with escalating needs,” she said.

Concerns remain

The Older Persons Advocacy Network (OPAN) said the government’s investment in the country’s older people is simply not enough, saying the budget “falls critically short where older people need it most: getting assessed and Support at Home.”

OPAN highlighted long assessment delays, with new data showing the average older person will wait up to a year for aged care services.

“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,” OPAN director of policy, education and systemic advocacy Samantha Edmonds said.

“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.

“Older people deserve to be valued and treated with dignity and respect, and unfortunately this Budget still leaves much uncertainty.”

What else for health?

The Budget delivers $25 billion in additional Commonwealth funding for public hospitals, taking total funding to a record $220 billion from 2026–27 to 2030–31.

“As a Labor government, we will always invest in Medicare, cheaper medicines and public health so Australians get the care they need, when they need it,” the Treasurer said.

Medicare Urgent Care Clinics will become permanent, supported by $1.8 billion, with Mr Chalmers noting that “four in five Australians will live within a 20‑minute drive” of a clinic by July.

The government is also investing $6.5 billion in cheaper medicines, including new and amended PBS listings and free RSV vaccines for older Australians.