The Albanese Labor Government has listened to older Australians, their families, advocates and providers - and in the 2026 Budget will invest $3 billion to deliver more beds, more packages and better care for older Australians.
The Government will build on changes we delivered in our first term to incentivise construction of beds for aged care residents and give providers the certainty they need to build and maintain quality residential accommodation, make Support at Home fairer and more affordable for older Australians, and continue the Government's work to set the system up for generations to come.
The Government will invest $1 billion to change the treatment of personal care services through the Support at Home program, making them free of charge alongside other clinical care.
The Government is also responding to the Independent Review of Residential Aged Care Accommodation Pricing, which was released today. Led by Mr Nigel Ray PSM and Associate Professor Nicole Sutton, the Review provides a considered, evidence-based framework for a sustainable residential care sector that can deliver the accommodation older Australians deserve.
The Budget will respond to the Review's findings with a package that will deliver an additional 5000 beds a year including:
- New targeted capital subsidies for residential aged care, providing additional funding for supported residents for newly built or refurbished homes.
- An increase to the Accommodation Supplement and structural changes to introduce new tiers, and additional payment for homes with more than 60% supported residents
The Review also contains recommendations about capital assistance to aged care providers planning to build new homes, and the Government will consult with the sector about those recommendations.
We'll also invest over $200 million for 20 additional Specialist Dementia Care Program units and an expansion of the Hospital to Aged Care Dementia Support Program.
