Budget 2026-27: Aged care news
Written by Lilly Sorensen, Sector Support Administrator
Last week’s Federal Budget announcement revealed:
• $3.7 billion towards residential aged care and home care, including $1.4 billion over 4 years towards strengthening Support at Home.
Personal Care Services: 0% Client Contributions
• The above $1.4 billion includes $1 billion over 4 years to fully fund Personal Care Services, to be moved into Clinical Care contribution category, (0% client co-contribution) from 1 October 2026.
Support at Home Places
•32,000 additional Support at Home places (FY 2026-27)
•420,000 older people will be receiving Support at Home services by 30 June 2027.
No additional details on the timing of new package releases at this stage.
No Growth projected for CHSP
• CHSP continuing, but no updates on transition to Support at Home: the target for 2026-27 is projected to remain flat, at 860,000 clients receiving CHSP.
Means testing exemption for residential aged care: Stolen Generation Redress Payments
• Stolen Generations Redress payments are now exempt from residential aged care means testing. While community leaders welcome the change, the exemption should apply across all aged care services.
Will the Interim First Nations Aged Care Commissioner role become permanent?
• No news on the Permanent First Nations Aged Care Commissioner role: the Interim First Nations Aged Care commissioner role was only funded until mid 2026. The role is vital to transforming the aged care system to ensure culturally safe aged care.
No additional funding for Aged Care Assessments
• Greater investment is needed to address Assessment wait times: currently around 120,000 are waiting to be assessed.
Further Support at Home places needed
• While 32,000 additional places is good news for older people, around 80,000 people are waiting to be assigned a package.
•Greater investment is needed to address Support at Home Packages: The current average wait time is 12 months, despite the governments goal of 3 month wait time within 1 year of the new Act.
Hardship Application Process to be streamlined
• Hardship Application process: Australians facing difficulty paying for aged care services will receive more support, with the application process for hardship being simplified.
End-of-Life Pathway: Extended funding
• End-of-Life pathway: extended funding for End-of-Life participants who live beyond the initial funding period
National Worker Registration Scheme
• National Worker Registration Scheme: ongoing commitment toward harmonisation & exploring mandatory minimum qualifications, defined professional scope.
Hospital to Aged Care Dementia Support Program
• $224 million over 4 years: Hospital to Aged Care Dementia Support Program – expansion to 20 locations
Aged Care Quality and Safety Commission
• $120.3 million in 2026-27 for Aged Care Quality and Safety Commission to support their regulatory role. Cost recovery arrangements (provider registration fees) will continue.
While the announcements are a positive step, many sector leaders point out that bolder investment is needed for fundamental changes to ensure a sector and workforce that remains resilient for decades to come.