Aged and Community Care Funding - $44 Billion - Securing and Planning for the Challenges of Our Nation’s Ageing Population

The Australian Government will provide a record $44 billion over the next four years – an extra $2.5 billion – for aged and community care providers.

Page last updated: 12 May 2009

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12 May 2009

“Increased funding from the Australian Government will bring direct financial support for aged and community care providers to care for older Australians to a record level of $44 billion over the next four years,” the Minister for Ageing, Mrs Justine Elliot said.

That is $2.5 billion extra over the next four years for the aged and community care.

“Australians now have the longest life expectancy in the English speaking world and this is about responding to the challenges of our nation’s ageing population,” Mrs Elliot said.

“No Australian Government has provided more financial support to aged and community care than the Rudd Labor Government.

“We have a strong and viable aged and community care sector which helps older Australians remain independent in their homes as long as they want and then enter an aged care facility when they need it.

“This funding to aged and community care will mean that investment will continue to occur so the sector can build on the more than 175,000 nursing home beds in Australia.”

Mrs Elliot said the substantial increase was due to the continuation of the Conditional Adjustment Payment and increases from the pension which have flowed on to Australia’s 2,830 aged care operators.

In 2009-10, the Australian Government will provide a total of $9.9 billion to support the aged care needs of older Australians, with $7.1 billion of this funding for residential aged care.

For the entire aged care sector, this represents an increase of 9.9 per cent over the estimated level of expenditure for 2008-09.

Aged care recipients also make a significant contribution to the cost of the aged care services they receive.

Measures in the 2009-2010 Budget will increase the total funding for residential aged care, from the Commonwealth and residents, by an estimated $728 million over the next four years, above and beyond the normal increases in aged care subsidies.

Over the next four years, residential aged care providers will receive, on average, $65,900 per year for each older Australian in their care, with $44,600 of this provided by the Commonwealth.

The Government recognises that population ageing will place increasing demands on the aged care system in coming years. The Government will continue to consider the longer term needs of the aged care system, taking into account relevant recommendations in the final report of the National Health and Hospitals Reform Commission.

Details: (02) 6277 7280 or Kathryn Conroy 0448 249 447

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