Ageing Australia has made a series of recommendations ahead of the 2026 federal budget aimed at building a properly funded aged care sector, that will grow with our ageing population, supported by a workforce to match.
“Action is needed now with the number of Australians aged over 70 set to hit 2.3 million by 2044,” Ageing Australia CEO Tom Symondson said.
“We should be building 10,000 beds a year over the next decade just to meet that demand, but sadly we’re only building a fraction of those.”
“Investment now will safeguard older Australians, strengthen quality care and reduce pressure on hospitals.”
“It’s not just about beds. We also know that most older people want to stay in their homes and in the community for longer. To support this, providers need the right resourcing to coordinate and facilitate care for people in the community.”
“We also need a workforce to match. By 2050 aged care is facing a predicted shortage of some 400,000 workers. Without urgent investment Australia will not have the workers needed to support our ageing population.”
“These proposed measures, if adopted, will support the confidence of the Australian community that they can access quality care as they age, should they need it, when and where they need it.”
Ageing Australia key recommendations
Funding
1. Increase the Accommodation Supplement so residential aged care providers can keep their doors open and invest in safe, modern homes.
2. Set a price floor for the Maximum Permissible Interest Rate (MPIR) of eight per cent to encourage investment in building and upgrading residential aged care homes.
3. A review of the Australian National Aged Care Classification (AN-ACC) funding model to more accurately align care funding with actual provider costs in support of older Australians.
4. Introduce a low interest loan scheme to facilitate the development and renewal of residential aged care homes.
5. Expand the Aged Care Capital Assistance Program (ACCAP) to support capital development in areas and communities of highest priority.
6. Implement price caps for Support at Home services no earlier than 1 January 2027 using data from Support at Home activity, so pricing accurately reflects delivery costs.
7. Increase the care management cap for Support at Home to ensure older people receive the care and coordination support they need.
8. Increase funding for CHSP services so providers can continue delivering the support older people rely on before CHSP becomes part of Support at Home.
Workforce
9. Allocate $150 million to expand ACCAP with a dedicated aged care worker accommodation stream to help providers to attract and house staff, especially in non-metropolitan and First Nations communities.
10. Establish a national Essential Skills Visa to make it easier for overseas aged care and community care workers to come to Australia.
11. Remove Labour Market Testing for critical aged and community care roles so providers can recruit international workers more quickly.
Read the full Ageing Australia Pre-Budget Submission 2026-27.
