Aged Care Sector Under Transformation in 2024
In 2024, Australia’s aged care sector is undergoing significant changes following findings from the Royal Commission into Aged Care Quality and Safety. The final report, released in 2021, detailed 148 recommendations aimed at reforming the sector comprehensively.
Five-Pillar Aged Care Reform Plan
In response to the Royal Commission’s findings, the federal government has announced a five-pillar aged care reform plan, set to be delivered over five years. This plan addresses critical areas including:
- Home Care: Enhancing the quality and accessibility of home care services.
- Residential Aged Care Services and Sustainability: Ensuring sustainability and quality in residential aged care.
- Residential Aged Care Quality and Safety: Strengthening quality and safety standards in aged care facilities.
- Workforce: Developing a skilled and sufficient workforce to meet the sector’s needs.
- Governance: Improving governance structures to oversee aged care services effectively.
Central to this reform are the Strengthened Aged Care Quality Standards, a new Aged Care Act, and the establishment of an Aged Care Taskforce to review funding arrangements for aged care. The Taskforce’s final report, released in March, has been instrumental in shaping these initiatives.
National Health Reform Agreement (NHRA)
Under the National Health Reform Agreement (NHRA), the Australian Government contributes funds to the states and territories for public hospital services. From 1 July 2020 to 30 June 2025, the government will contribute approximately $133.6 billion.
Federal Spending on Health and Aged Care
For the fiscal year 2024–25, overall federal spending on health and aged care is projected to be $146.1 billion. This includes a five-year commitment to invest $10.7 billion, with $8.5 billion allocated to health and $2.2 billion to aged care. Key investments include:
- Strengthening Medicare: $2.8 billion to enhance the Medicare system.
- Delivering Cheaper Medicines: $4.3 billion to reduce the cost of medicines.
- Investing in a Fit and Healthy Australia: $1.3 billion towards promoting overall health and wellness.
Allied Health National
-
Federal budget 2024–25: $361 million over four years will fund Primary Health Networks, in collaboration with general practices, to hire mental health nurses and other allied health professionals who will offer free care coordination and support to patients with complex needs between GP and specialist appointments. Read more
-
Federal budget 2024–25: $10.8 million over 2 years will extend the Palliative Aged Care Outcomes Program and Program of Experience in the Palliative Approach workforce training programs. Read more
-
Allied Health Professionals Australia (AHPA) provides free resources and guidance to support allied health providers to register with the NDIS Quality and Safeguards Commission. AHPA’s provider readiness checklist has important information about being an NDIS provider. Read more
Exercise and Physiotherapy (National Grant Opportunity)
-
Grant Opportunity: The Australian Public Health Small Grants Program provides financial assistance to eligible patients in public health settings, helping them meet essential health and wellbeing needs through applications made by health professionals. Read more
-
Home Care Packages provide funding based on the level of assessed care needs, with physiotherapy and other allied health services included for individuals with mobility issues, falls risk, or other physical health concerns. Read more
-
For people needing in-home disability support, the NDIS can provide funding for numerous services, including allied health therapies. Read more

