Budget 2024 – 25: Aged care overview

In his third Budget, Treasurer Dr Jim Chalmers has revealed expected funding for aged care wage increases, $2.2 billion for aged care reforms, increased Home Care Packages and funding for modernising the government’s digital systems.

For workers, the broader budget offers cost of living relief, especially for those on low and middle incomes. From July 1, 2024, all taxpayers will get a tax cut – an average of $1,888 per year or $36 per week.

The government is allocating $882.2 million to help older Australians avoid hospital admissions, facilitate earlier discharges, and improve transitions to appropriate care settings. This is part of a broader initiative to enhance the aged care system, which includes another $2.2 billion for implementing recommendations from the Royal Commission into Aged Care Quality and Safety.

As previously reported, the budget doesn’t include funding for significant aged care reform. These delays and the government’s failure to respond to the Aged Care Taskforce recommendations have been widely condemned.

“It’s been six months since the Aged Care Taskforce delivered its recommendations and the
government has not even responded to them. With most facilities operating at a loss and many at risk of closure, we are running out of time to secure quality and sustainable aged care for our loved ones.”

Laura Haylen, Catholic Health Australia, Director of Aged Care Policy

An additional $531.4 million will fund 24,100 more Home Care Packages in 2024-25, reducing wait times and enabling more seniors to receive care at home.

To bolster aged care regulation, $110.9 million will enhance the Aged Care Quality and Safety Commission’s capabilities over four years.

Furthermore, $1.2 billion will be invested in digital systems to support the new Act and modernise IT infrastructure. The My Aged Care Contact Centre will receive $37 million to reduce call wait times.

As more Australians live longer, healthier lives, demand for aged care services is growing – and the sort of care we need is changing. Ensuring dignity and security for older Australians means allowing people to choose the care that’s right for them – including staying in their own home.”

Hon Dr Jim Chalmers MP

As previously announced, the government will fund wage increases for aged care workers following the Fair Work Commission’s final decision, adding to the $11.3 billion already allocated for an interim 15% wage hike.

Additionally, $87.2 million will support initiatives to attract nurses and other professionals to the sector.


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