Ageing Australia has called on the federal government to make major funding and workforce commitments in the upcoming federal budget, warning that without urgent action, the aged care system will struggle to keep pace with Australia’s rapidly ageing population.
Ageing Australia Chief Executive Officer Tom Symondson said the scale of demographic change meant investment could no longer be delayed, with the number of Australians aged 70 or over projected to reach 2.3 million by 2044.
“We should be building 10,000 aged care beds a year over the next decade just to meet demand, but at the moment we’re only delivering a fraction of what’s required,” Mr Symondson said. “Investment now will safeguard older Australians, strengthen quality care and reduce pressure on hospitals.”
In its pre-budget submission, Ageing Australia argues that a sustainable aged care system requires both adequate capital funding for residential care and stronger support for older people who want to remain living at home.
“Most older people want to stay in their homes and communities for longer, but providers need the right resourcing to coordinate and deliver care in the community.”
Ageing Australia CEO Tom Symondson
The organisation has called for a series of funding reforms, including an increase to the Accommodation Supplement to help providers remain viable and invest in modern facilities, and the introduction of a price floor of eight per cent for the Maximum Permissible Interest Rate to encourage new investment in aged care infrastructure.
Ageing Australia is also seeking a review of the Australian National Aged Care Classification (AN-ACC) funding model to better align funding with actual care costs, alongside low-interest loans and an expanded Aged Care Capital Assistance Program targeted at high-need regions. It has further urged the government to delay price caps on Support at Home services until at least January 2027 and to lift funding for care management and Commonwealth Home Support Programme services.
Workforce shortages remain a central concern, with the sector forecasting a shortfall of around 400,000 workers by 2050. To address this, Ageing Australia is calling for $150 million to expand the Aged Care Capital Assistance Program (ACCAP) to include worker accommodation, particularly in regional and First Nations communities.
The peak body has also proposed the creation of a national Essential Skills Visa for aged and community care workers and the removal of labour market testing for critical roles to speed up international recruitment.
“These measures, if adopted, will give older Australians confidence that quality care will be available when and where they need it,” Mr Symondson added.
