Government to commit $3.7bn to strengthen aged care access

The government will invest $3.7 billion to increase the supply of residential aged care accommodation, accelerate the release of Support at Home packages and enhance the quality and affordability of aged care services.

In a direct response to the Residential Aged Care Accommodation Pricing Review, the Federal Budget announced it will aim to incentivise construction of up to 5000 aged care beds a year for aged care residents and protect equity of access for them.

Specifically, the Budget will allocate $606.5 million over four years from FY27 to introduce new capital subsidies for aged care providers who build or expand residential accommodation, deliver up to 20 additional Specialist Dementia Care Program units and expand the Hospital to Aged Care Dementia Support program from 11 to 20 locations nationally.

This was previously flagged by minister for health and ageing Mark Butler's speech at the National Press Club last month, who also announced the removal of the increased rebate for those over 65 for private health insurance to redirect those funds into aged care.

Meanwhile, the Budget will also provision $1.1 billion for future spending to increase and restructure the accommodation supplement and introduce an additional payment for homes with more than 60% supported residents.

A further $1 billion will be committed to improve personal care services in the Support at Home program, alongside $389.8 million to implement refinements in the program, including assessments, hardship applications and the end-of-life pathway, and to bring forward the release of the program.

Additionally, $565.1 million will be delivered to strengthen regulatory, governance and quality arrangements, sector viability and workforce support to provide better aged care for older Australians.

"These changes build on the government's aged care reforms that have codified the rights of older Australians in law and established a system to deliver safe, dignified and high-quality care for an ageing population," the Budget overview said.

This also comes as the review proposes to provide clearer distinction between financial advice and information obtained from aged care providers when it comes to understanding the costs and financial impact of residential aged care accommodations.

The report highlighted it is the responsibility of providers to ensure their staff do not provide financial advice outside of information relating to aged care costs.