In the latest Federal Budgets, the Australian Government has made plenty of noise about its investment in aged care — but dig deeper, and the cracks start to show.
Between the 2023–24 and 2024–25 budgets, we’ve seen a mix of reforms, digital upgrades, and funding boosts. Yes, these efforts are a step forward. But are they the structural reset the sector so desperately needs? Not quite.
Aged Care at Home – But At What Cost?
A big-ticket item in 2024–25 is the addition of 24,100 new Home Care Packages, funded by a half-billion-dollar investment. That’s welcome news for the many older Australians preferring to age at home — and a smart pivot, given the government is also cutting back on residential care places (down from 78.0 to 60.1 per 1,000 people aged 70+).
But here’s the catch: this shift is happening while workforce shortages are ballooning, and without a clear funding model to sustain any of it.
You can’t age at home without carers. You can’t offer “choice” if services simply aren’t available.
Tech Upgrades Without Human Support?
The government is also throwing $174.5 million at aged care ICT infrastructure and digital systems — upgrades designed to support the new Support at Home program. That’s great on paper. But with tech investment often comes disruption, and who is going to help older Australians and overworked staff navigate new systems?
Digital transformation can’t come at the expense of personal care. Especially not in a sector where compassion, not code, is the currency.
Workforce: The Elephant Still in the Room
The 15% wage rise for aged care workers in 2023–24 was long overdue — a result of union action and the Fair Work Commission, not political generosity. Yet despite a one-off funding package to cover the bump, there’s no long-term strategy to retain or attract aged care workers.
Let’s be blunt: Australia faces a shortfall of over 110,000 aged care workers by 2030. Without urgent action — better pay, career progression, training, and support — these reforms are little more than window dressing.
A Funding Black Hole
Perhaps the most glaring omission? No sustainable funding model. The Aged Care Taskforce floated the idea of a levy — a Medicare-style contribution to safeguard the future of aged care. It’s bold. It’s necessary. But it’s been conspicuously ignored in both budgets.
Instead, we get stopgap funding and media-friendly packages that look good in headlines but dodge the hard questions.
A Missed Opportunity?
There’s no denying progress has been made — especially in regulation, tech, and home care availability. But aged care in Australia remains fragile. Its workforce is stretched thin. Its funding model is shaky. And its future? Still waiting for real political courage.
Until we face these issues head-on, aged care reform risks becoming yet another cycle of short-term fixes for a long-term crisis.
