Ageing Australia’s $1.9 billion budget wish list

Ageing Australia, the peak body representing all providers of aged care, has published its key recommendations for government on the eve of the federal budget.

Altogether, its recommendations would total just over $1.9 billion for the government to invest in aged care.

Tuesday’s budget will set the tone for the 2025/26 financial year. However, uncertainty remains over its impact if the as-yet-unannounced May election ultimately elevates the Coalition party into leadership over Labor.

There is hope the government delivers an effective budget that tackles aged care’s most important issues, such as the ongoing workforce crisis, new Aged Care Act transition and short-to-long-term financial sustainability.

Long-term viability is at the forefront of Ageing Australia’s mind. Ageing Australia Chief Executive Officer Tom Symondson is concerned many providers are facing the end of the road, particularly as the organisation’s most recent State of the Sector Report revealed that 20% of providers were not confident in their ability to still be providing services in 12 months’ time.

Ageing Australia’s recommendations are therefore designed to ensure the continuing delivery of quality care now and in the future.

“Relieving the workforce crisis, transition to the new Support at Home Program and time to implement reforms properly are our absolute top priorities,” Mr Symondson said.
 
“Without enough time and funding to support the sector to transition properly, we risk sector instability, complications and confusion for both providers and older Australians.
 
“All providers, from very small to very large, are likely to struggle if reforms are rushed. The sector needs certainty on what is required, funding and support for transition, and enough time to get it done.”

All up, Ageing Australia has made nine overarching recommendations to government. There is recognition for Commonwealth Home Support Home Program (CHSP) providers, the aged care workforce, hospital in the home and Information and Communications Technology (ICT) among them.

All recommendations have been informed by feedback from aged care providers.

If adopted, Ageing Australia is confident these recommendations will ensure the aged care system is sustainable and equipped to meet the changing needs and preferences of Australia’s ageing population.

The Treasurer will deliver the 2025-26 Budget at approximately 7.30pm (AEDT) on Tuesday night. Government documents will be published here. You can also view Ageing Australia’s recommendations below.

Ageing Australia budget recommendations

Fund quality and sustainable aged care services

Support sustainable funding and optimise the implementation of the Aged Care Taskforce’s recommendations by:

• Conducting the review of the Accommodation Supplement as soon as possible.
• Costing and funding high quality care, including new program administration and business costs, as per the definitions in the new Act.
• Ensuring residential aged care providers are adequately funded to meet the new requirements in the service list.

Adjust funding settings for the Commonwealth Home Support Programme (CHSP) to ensure the CHSP sector remains viable

Revise the indexation arrangements for CHSP, as the 3.5% indexation from 1 July 2024 was insufficient to address provider wages costs.

Alleviate additional cost pressures on aged care from State-based taxes 

Invest $391.5 million annually to re-introduce the Aged Care Payroll Tax Supplement paid to private residential care providers who, unlike not-for-profit providers, are not exempt from state government payroll taxes.

Establish a taskforce to develop a National Aged Care Workforce Strategy 

$0.5 million in 2025-26 to establish a National Aged Care Workforce Strategy Taskforce to undertake data collection, sector-specific projections, and identify strategies to address gaps in skills, staffing shortages, and changing care demands.

Boost the aged care workforce across Australia, particularly in regional areas

Build a sustainable aged care workforce equipped to meet increasing future demand through:

• Establishing an Aged Care Worker Attraction Fund to attract workers to the aged care sector, especially in rural and remote areas.
• Investing in training and skills development opportunities for aged care workers.
• Increasing funding for the Aged Care Capital Assistance Program to support capital works for on-site accommodation for staff.

Improving access to migrant workers to build a sustainable workforce

$9 million over 3 years to establish:

• A sector-led migration advisory service for aged care providers to access and retain their migrant workers; and
• An International Workforce Council to support cross-sectoral collaboration and develop innovative solutions to improve the aged care sector’s ability to access migrant workers.

Transition support to enable providers to implement the new Act

This support should include:

• From the commencement of the Support at Home program, funding Care Management at 20% of the consumer’s package value, for the first year to support transition and market stability.
• $188 million for a transition supplement to support the aged care sector transition to the new Act. This supplement would help providers cover the costs associated with implementing the new Act.

Funding for providers to support Information and Communications Technology (ICT) change

$600 million to establish an ICT grant program for aged care providers to meet the obligations of the new Act, comprised of $400 million for capital expenses (including system acquisition and upgrades) and $200 million for operational expenses (including training and skilled staff).

Pilot hospital in the home in retirement villages

$2.5 million to fund a three-month pilot of integration of hospital in the home in eight retirement villages.