Budget: Ageing Australia calls for "sweeping reforms" funding

Ageing Australia has recognised the Australian Government’s $2.6 billion investment to support future pay rises for registered and enrolled aged care nurses, confirmed in the Budget 2025–26; these future wage increases are on top of the 15% increase for registered and enrolled nurses in 2023. However, Ageing Australia also said that more work needs to be done to prepare for “sweeping reforms”.

“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. “We know that the previous increases are working. We’re hearing reports from across the sector that it’s becoming easier to attract and keep aged care workers, so this is another important step in that journey.”

In a statement, Ageing Australia said it will continue to advocate during the upcoming federal election for increased funds for providers to transition to the new Aged Care Act, which comes into effect on 1 July 2025. Ageing Australia said that funding is particularly needed for critical upgrades to ICT systems.

“The cost to providers of delivering these reforms is immense, with some already spending millions of dollars. Individual grants of $10,000 clearly aren’t enough,” Symondson said. “That’s why we called for $600 million in the Budget to build the ICT infrastructure and systems we need, along with $188 million to help the sector, including some 450,000 aged care workers, to get ready for this once-in-a-generation reform.”

Symondson said that all the information needed from government departments, including all of the rules for the new Act, has not been provided, and that “so much of the work can’t be completed”. Providers are also calling for more transition time.

“Without more time to implement such sweeping reforms, we run the very real risk that we’re going to get to 1 July without everything in place. This will have very real consequences for older people and we’re concerned that there could be disruption to services, and confusion and uncertainty for older Australians and providers alike,” Symondson said, calling for “a staged approach to implementation”.

Symondson added: “We’re not calling for a delay to the start date of the Act, and in particular its charter of rights for older Australians. What we are calling for is a staged approach to implementation of some of the reform programs. We all want these reforms to succeed, but to deliver them, providers need certainty on what is required and enough time to achieve it.”

Symondson concluded: “The administrative and technical challenges of this reform cannot be underestimated. Providers are committed to ambitious reform, but it takes time and should not be rushed.”

Image credit: iStock.com/Mariia Vitkovska