Ahead of the 2025/26 Federal Budget, Ageing Australia has submitted a set of targeted recommendations to address the aged care workforce crisis, support the sector’s transition to the New Aged Care Act, and promote long-term sustainability. In a statement, CEO Tom Symondson emphasised the need for proper funding, adequate time, and structured support to ensure reforms are implemented smoothly and effectively. Without this, the sector risks instability and confusion, particularly among providers and older Australians.
The recommendations reflect insights from the organisation’s 2024 State of the Sector report, which revealed that 20% of aged care providers are uncertain about their viability in the coming year. The proposed measures aim to support both the immediate and future needs of the sector, ensuring quality and accessible care for Australia’s ageing population.
“Our State of the Sector Report in 2024 showed 20 per cent of these providers were not confident in their ability to still be providing services in 12 months’ time.”
Ageing Australia, Chief Executive Officer, Tom Symondson
Key Recommendations:
1. Fund Sustainable Aged Care Services
Accelerate the review of the Accommodation Supplement, ensure funding covers high-quality care as defined in the new Act, and support providers in meeting new service requirements.
2. Adjust CHSP Funding
Revise indexation for the Commonwealth Home Support Programme, as the current 3.5% increase does not adequately cover rising wage costs.
3. Offset State Payroll Tax Burdens
Reintroduce the Aged Care Payroll Tax Supplement ($391.5 million annually) to assist private residential care providers who face payroll tax costs not incurred by not-for-profits.
4. Develop a National Workforce Strategy
Allocate $0.5 million to create a task force that will collect data, forecast workforce needs, and propose solutions for staffing shortages and skill gaps.
5. Grow the Aged Care Workforce, Especially in Regions
Establish an Aged Care Worker Attraction Fund, expand training initiatives, and increase capital support for on-site staff accommodation in rural areas.
6. Enhance Migrant Workforce Access
Invest $9 million over three years to set up a sector-led migration advisory service and an International Workforce Council to improve recruitment and retention of migrant workers.
7. Support the Transition to the New Act
Allocate $188 million for a transition supplement and fund Care Management at 20% of package value during the first year of the Support at Home program.
8. Invest in ICT Upgrades
Provide $600 million in grants for aged care providers to meet digital and operational demands under the new Act.
9. Trial Hospital in the Home Services
Fund a $2.5 million pilot integrating hospital-the-home services in eight retirement villages over three months.
These recommendations aim to stabilise the sector, enable reform readiness, and ensure older Australians continue receiving high-quality care.
The Budget address will be live-streamed on the ABC tomorrow evening at:
- 7:30 pm AEDT: ACT, New South Wales, Victoria and Tasmania
- 6:30 pm AEST: Queensland
- 7 pm ACDT: Northern Territory and South Australia
- 4:30 pm AWST: Western Australia
