2025 federal budget information hub
This hub is a central repository of critical insights into the 2025–26 federal budget decisions affecting the aged care sector.
Treasurer Jim Chalmers delivered the budget on Tuesday 25 March 2025 and this hub features our detailed policy analysis, key information and resources to support Ageing Australia members.
Resources
Quick links
Ageing Australia budget advocacy
In our 2025–26 Pre-Budget Submission, Ageing Australia outlined nine key recommendations to government, to help shape the future of aged care as the new Aged Care Act comes into effect on 1 July 2025.
These recommendations, informed by our members, focus on three critical areas essential for building a robust and sustainable aged care system that meets the evolving needs and preferences of Australia’s ageing population:
- Funding – ensuring aged care services are adequately funded to deliver quality care to older Australians, and that they will be sustainable into the future.
- Workforce – building the aged care workforce so that the aged care sector will be able to meet growing demand.
- Reform – supporting implementation of the new Act and innovation.
Thank you to our members for sharing their knowledge, experiences and ideas, particularly those who participated in our pre-budget submission workshops. Your insights have been invaluable in shaping our policy and advocacy efforts in the lead-up to the budget and election.
Tom Symondson at Parliament House following the budget lockup.
Budget lacks transition support for aged care providers
The 2025-26 federal budget failed to provide the support aged care providers need to transition to the new Aged Care Act. With some providers already spending millions, the $10,000 individual grants are far from enough.
We called for $600 million to build essential ICT infrastructure and $188 million to support the sector’s transition. Yet, with the 1 July deadline fast approaching, key details – such as the full set of rules – are still missing. There has also been little government communication to older Australians about these changes.
Without sufficient time and funding, the risk of disruption to services is real, leaving older Australians facing uncertainty. We are urging the government to adopt a staged approach to ensure these critical reforms are implemented successfully.
Aged care providers are committed to delivering meaningful change – but reform must be well-planned, not rushed.
While we recognise the Government’s commitment to invest $2.6 billion dollars to support future pay rises for registered and enrolled aged care nurses in tonight’s federal budget, the 2025-26 federal budget highlights more work needs to be done to prepare for sweeping reforms.
As we turn our focus to the federal election, we remain committed to ensuring that aged care is a national priority, regardless of who forms the next government. Our 2025 federal election campaign advocacy addresses the transition to the new Aged Care Act and the necessary implementation support through sensible funding, realistic timelines and solutions to key challenges such as care management and Higher Everyday Living Fees (HELF).
This election we are also calling on the government to address the workforce crisis through sustainable workforce solutions, as well as improved access to care for older Australians by addressing waitlist and assessment times, designing strong safety nets and supporting innovative models of care.
We will continue working closely with government, stakeholders and our members to ensure a robust, sustainable and high-quality aged care sector that is accessible for all older Australians.
Summary of key funding for aged care
| Budget topic | Budget announcement |
|---|---|
| Headline Budget measure for aged care | $291.6 million to continue delivering aged care reforms |
| Fair Work Commission Work Value Case | $2.6 billion over five years to fund the increase to award for 60,000 registered and enrolled nurses as announced earlier this month, including: - $2.3 billion through Australian National Aged Care Classification (AN-ACC) funding model - $187.8 million to increase funding for home care and Support at Home - $76.8 million for additional in-home services through through Commonwealth Home Support Program (CHSP) and Support at Home - $35.5 million over two years for historical leave entitlements - $30.1 million for CHSP providers through an uplift in indexation - $26.8 million to fund the increase for the 24/7 RN supplement |
| New Aged Care Act reform | - *$116.1 million in 2025-26 for the Aged Care Quality & Safety Commission (‘the Commission’) to deliver its regulatory functions under the new Aged Care Act
- *$53.2 million in 2025-26 to continue implementation of the Single Assessment System - *$37.8 million in 2025-26 for the Commission to support the staged digital implementation of the new Act |
| Health and aged care | - $11.1 million in 2025-26 to support palliative care in residential aged care through state ‘in-reach’ services
- *$5.7 million in 2025-26 for the National Centre for Monitoring Dementia to monitor progress against the National Dementia Plan |
| Specialisations (including First Nations) | - *$47.6 million over four years to support Aboriginal Community Controlled Health Organisations to deliver culturally appropriate aged care assessments |
(*These initiatives are part of the $291.6 million implementation of aged care reforms measures)
Detailed Ageing Australia budget analysis
Our 2025-26 federal budget analysis provides a detailed overview of the budget’s key provisions and their potential impact on the sector.
We will continue to engage with the government and advocate for a sustainable aged care system.
Media releases
25 March, Ageing Australia recognises much needed workforce funding but more work needed on reforms
Ageing Australia recognises the Government’s commitment to invest $2.6 billion dollars to support future pay rises for registered and enrolled aged care nurses in tonight’s federal budget, but highlights more work needs to be done to prepare for sweeping reforms.
The future wage increases are on top of the 15 per cent increase for registered and enrolled nurses in 2023.
“As the Government has acknowledged in the past, our sector can only afford these types of increases if they receive Government funding,” Ageing Australia CEO Tom Symondson said.
24 March, Ageing Australia makes recommendations ahead of federal budget
Member webinar: Thursday 27 March 2025, 12-1pm AEDT
We encourage members to register to attend our 2025-26 federal budget members’ webinar, where we will share further details on what the 2025-26 budget means for aged care, provide information on our 2025 election campaign, and respond to member questions.
