The Albanese Labor Government is ramping up support for Australia’s aged care sector, allocating billions of dollars in new funding to improve care for seniors and deliver better pay for workers. These commitments come as part of the Government’s ongoing efforts to ease cost-of-living pressures and address the crisis inherited from the previous Coalition Government.
United Workers Union National President Jo Schofield has praised the increased investment, describing it as a “game-changer” that will bolster both the workforce and the residents they care for. According to Schofield, the new funding has “dragged aged care out of the crisis that dominated headlines under the previous Coalition Government,” and is creating a stronger, fairer industry.
Rapid Growth in Aged Care Funding
Labor’s total funding for aged care surged from the Coalition’s $23 billion in 2021–22 to $32.3 billion in 2023–24, with a projected $38 billion in 2024–25. These higher investments aim to improve staff-to-resident ratios and enhance workplace conditions, an essential step for an industry that overwhelmingly employs women.
“Reform and funding have dragged the aged care sector out of crisis. Over the last three years, aged care funding has been a major focus, reflecting the government’s commitment to improving care for our elderly and recognising the hard-working carers who make it all possible,” Schofield said.
Key initiatives include $5.4 billion for a new Support at Home program, $102 million for 7,615 additional Home Care Packages, and $3.8 billion over four years to fund pay rises for workers in 2025. These measures seek to address understaffing, reduce wait times for assessments, and increase access to home modifications, ensuring older Australians can remain in their communities longer.
“Investments have gone into ensuring higher-quality care and better pay for workers, many of whom are women, in this critical sector. We are seeing the positive outcomes of this funding—improved care standards for our seniors and a much-needed boost for aged care workers. There is always more work to do, and in this Budget Labor should continue its important work of building a better aged care sector.”
Cost-of-Living Relief for Aged Care Workers
Alongside direct sector funding, the Albanese Labor Government has also rolled out broader cost-of-living measures. Support for lower-income taxpayers, energy bill relief, and cheaper medicines help ease daily financial strains felt by many aged care workers.
“The Government’s cost-of-living measures are not just about numbers—they’re about people. By acting on this front, Labor is helping workers put food on the table, pay bills, and get through each day with dignity. We welcome the cost-of-living Budget measures already announced,” Schofield said, adding that tomorrow’s Federal Budget is another opportunity for the Government to “continue this progress.”
Ritchelle is a Content Producer for Healthcare Channel, Australia’s premier resource of information for healthcare.
