What does the Budget 2024–⁠25 mean for aged care?


Thursday, 16 May, 2024

What does the Budget 2024–⁠25 mean for aged care?

With the federal government handing down its Budget for 2024–25, here is a breakdown of how it will affect aged care.

The government has promised to enhance the capability of the Aged Care Quality and Safety Commission to ensure older Australians are in safe and quality aged care, upgrade technology systems to make the new Aged Care Act possible and provide an additional 24,100 Home Care Packages to shorten average wait times.

Reducing wait lists for older Australians wanting support to age at home

The federal government is investing $531.4 million to provide an extra 24,100 Home Care Packages in 2024–25, so more Australians than ever before have the option to remain in the home and the community they love.

Enhancing the capability of the Aged Care Quality and Safety Commission

  • $111.0 million to enhance the capability of the Aged Care Quality and Safety Commission, in response to the recommendations of the Independent Capability Review, as well as to implement the regulatory framework that will underpin the new Aged Care Act.
  • $88.4 million to continue to attract and retain the aged care workforce, including to provide better staffing solutions.
  • $1.4 billion to upgrade the technology systems and digital infrastructure across the sector. This includes funding to sustain current systems and to support the implementation of the new Aged Care Act.

Stronger connections for quality care and cheaper medicines

As part of the Strengthening Medicare package, the federal government has said that older Australians will get the health care and support they need in a safe and comfortable environment when it isn’t necessary for them to stay in hospital. Using hospital outreach services in the community and more virtual care services, older patients will be able to avoid unnecessary hospital admissions and be safely discharged sooner when they are admitted.

Older people with complex care needs will be supported to move out of hospital into a residential aged care home and more short-term care will be available for older people to help them recover after a hospital stay.

As part of the $1.2 billion Strengthening Medicare package in the 2024–25 Budget, states and territories will also be funded to upskill the residential aged care workforce, deliver hospital outreach services in the community, provide virtual care services and deliver complex care for older people outside of the hospital. $190 million will help older Australians recover from a hospital stay with short-term care through the extended Transition Care Programme.

From 1 August 2024, people in residential aged care will be more likely to receive quality and continuous care from a general practitioner, with GPs and practices eligible to receive quarterly incentive payments, on top of Medicare rebates, to manage the health of their MyMedicare registered residents.

Other funding will include:

  • $0.9 million so aged care residents have more options to receive a free vaccination. Community pharmacists are now paid the same fee that a doctor receives to administer free vaccines to residents in aged care under the National Immunisation Program.
  • $318 million over five years to strengthen pharmacy and keep medicines cheaper, with up to a five-year freeze to the cost of PBS prescriptions for pensioners and Commonwealth Seniors Health Cardholders, so medicines stay cheaper, instead of rising each year with inflation, benefiting people in residential aged care homes, in particular.
  • Better dementia care will be delivered through a $101.4 million investment in services and support for people living with complex care needs, as well as readying the health system for new diagnosis and treatment advances.

Image credit: iStock.com/watchara ritjan

Related News

Stop delaying action on aged care reform, advocates say

A new rights-based Aged Care Act urgently needs to be introduced, according to advocacy groups.

Aged care resident suffers severe burns, provider fined

A $66,000 fine has been issued to a Melbourne aged care provider after a resident suffered severe...

Progress report released on Aged Care Royal Commission

The 2024 Progress Report on the Implementation of the Recommendations of the Royal Commission...


  • All content Copyright © 2024 Westwick-Farrow Pty Ltd