The 2025 Federal Budget has delivered a combination of relief measures and missed opportunities for Australia’s senior population, with aged care experts expressing concern about implementation timelines and funding shortfalls despite welcoming cost of living assistance.
The Budget includes several measures directly benefiting older Australians, including a $150 energy subsidy over six months, tax cuts averaging $500 for 4.6 million people over 50, expanded GP bulk billing and reduced pharmaceutical costs with PBS medicines dropping from $31.60 to $25.00.
“As a whole, the Federal Budget recognises that Australians, including older Australians, are really feeling the pinch of the cost of living crisis and takes steps to alleviate some of that pressure,” said COTA Australia Chief Executive Officer, Patricia Sparrow.
However, aged care advocates have highlighted significant concerns about the sector’s readiness for the new Aged Care Act set to commence on 1 July 2025, with industry leaders calling for a staged implementation approach.
“We still don’t have all the information we need from government departments, including all of the rules for the new Act, so much of the work can’t be completed,” said Ageing Australia CEO Tom Symondson. “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.”
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The Budget does commit $2.6 billion to support future pay rises for registered and enrolled aged care nurses, building on the 15 per cent increase implemented in 2023. This investment has been recognised as crucial for workforce stability.
“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,” Symondson noted.
Catholic Health Australia (CHA) CEO Jason Kara expressed concern about transition issues: “Providers continue to face significant uncertainty, and there remains an urgent need for the Department of Health and Aged Care to release critical implementation details such as co-contribution amounts.”
The Older Persons Advocacy Network (OPAN) highlighted that the growing waitlist for Home Care Packages remains unaddressed. “We continue to see an increase in people waiting for Home Care Packages, and that hasn’t been addressed in this Budget. We are increasingly concerned that this figure will continue to grow,” said OPAN CEO Craig Gear OAM.
A notable omission in the Budget was the absence of a Senior Dental Benefits Scheme, which advocates say is urgently needed. “It’s disappointing that the Federal Government missed the opportunity to announce a Seniors Dental Benefit Scheme as part of this cost of living budget,” Sparrow said.
With a federal election approaching, advocacy groups are calling on all political parties to address these gaps during the campaign period, including increased funding for digital infrastructure, more Support at Home packages and targeted action against ageism.
Ritchelle is a Content Producer for Healthcare Channel, Australia’s premier resource of information for healthcare.
