Report on Government Services 2026

PART F, SECTION 14: RELEASED ON 29 JANUARY 2026

14 Aged care services

This section focuses on government funded care and support services for older people and their carers, which are provided at home, in the community and in residential care facilities.

The Indicator results tab uses data from the data tables to provide information on the performance for each indicator in the Indicator framework. The same data is also available in CSV format.

Data downloads

Refer to the corresponding table number in the data tables for detailed definitions, caveats, footnotes and data source(s).

Objectives for aged care services

The aged care system aims to promote the wellbeing and independence of older people (and their carers), by enabling them to stay in their own homes or assisting them in residential care. Governments seek to achieve this aim by subsidising aged care services that are:

  • accessible – including timely and affordable
  • appropriate to meet the needs of clients – person-centred, with an emphasis on integrated care, ageing in place and restorative approaches
  • high quality and safely delivered
  • sustainable.

Governments aim for aged care services to meet these objectives in an equitable and efficient manner.

 

As people age, they may need care and support to maintain their health, wellbeing, social connections, and independence, and to remain in their homes and communities. In 2022, 39.8% of people aged 65 years or older (1.7 million people) reported needing assistance as they aged (ABS 2024). Care and support for older people is often provided by family members, friends and neighbours. However, not everyone’s care needs can be met through informal care and support. Around 80% of older people will access some form of government funded aged care service before they die (AIHW 2018).

Government funded aged care services are provided to older people (all people aged 65 years or over and Aboriginal and Torres Strait Islander people aged 50–64 years) who have been assessed as eligible for subsidised care through an Aged Care Assessment Team (ACAT) or the single assessment application process. These services assist people who require assistance to access care in their homes, in the community or in residential care facilities. Approved aged care service providers receive government funding and must meet minimum standards of care.

Regulation and policy oversight of aged care services is primarily the responsibility of the Australian Government. The Aged Care Act 2024 (Cth) and the accompanying rights-based framework are the main regulatory instruments. The Act enforces obligations through a Code of Conduct and Aged Care Quality Standards that outline the rights of older people. 

The Australian Government funds residential aged care, home care and home support, with state, territory and local governments also funding and/or delivering some of these services directly. For example, a small proportion of residential aged care facilities are owned by state and territory governments. However, most services are delivered by non-government providers (tables 14A.11–12), such as private-for-profit, religious and charitable organisations.

While the Australian Government subsidises a significant portion of aged care, clients and residents are expected to contribute where they can and may be charged fees by service providers.

In 2024-25, government recurrent expenditure on aged care services was $39.8 billion or $7,895.4 per older person (table 14A.5; figure 14.1). Residential and flexible care services accounted for the largest share of expenditure ($25.4 billion, or 63.9%), while home care and home support services accounted for most of the remainder ($12.9 billion) (table 14A.4). 

In 2024-25, the Australian Government provided 98.9% of government funding for aged care services, with the remainder contributed by state and territory governments (table 14A.4). Detailed expenditure data by program is contained in tables 14A.4-9. 

In 2024-25, operating expenses for the Aged Care Quality and Safety Commission (ACQSC) were $338.4 million (table 14A.4). 

Aged care target population

The size and health of the older population are key drivers of demand for aged care services. Australia's population is ageing rapidly, with the share of the population aged 65 years or over projected to increase by 6.1 percentage points, from 17.3% in 2022-23 to 23.4% in 2062-63 (Commonwealth of Australia 2023). Although the Aboriginal and Torres Strait Islander population is also ageing, life expectancy at birth for Aboriginal and Torres Strait Islander people is lower compared to the non-Indigenous population (ABS 2023). The health sector overview contains further information on life expectancy (table EA.9).

The aged care target population is defined as all people aged 65 years or over and Aboriginal and Torres Strait Islander people aged 50–64 years (this aligns with the funding arrangements specified under the National Health Reform Agreement). The aged care target population differs from the Australian Government’s aged care ‘planning population’, which is used to allocate places under the Aged Care Act 1997 (Cth). For more information on the populations, refer to the 'Explanatory material' tab and table 14A.1.

Types of care and support

Home care and support

Governments provide services to help older people remain in their homes or return to their homes from hospital or respite care. Carers can also access respite care through home care and home support programs:

  • the Commonwealth Home Support Programme (CHSP) provides entry-level support services to help older people live independently and safely at home and in their community. Table 14A.20 provides a full list of CHSP services. Nationally in 2024-25, there were 833,670 older CHSP clients, equivalent to around 165.4 older clients per 1,000 older people (table 14A.2–3).
  • the Home Care Packages Programme provides more complex in home care tailored to assessed levels of need (level 1 Home Care Packages assist older people with low-care needs, while level 4 packages support high-care needs). Nationally in 2024-25, there were 351,816 older clients of the Home Care Packages programme, equivalent to around 69.8 older clients per 1,000 older people (table 14A.2–3).
  • the Department of Veterans’ Affairs (DVA) provides community care for eligible veterans through the Veteran Home Care (VHC) service. Nationally in 2024-25, 31,979 veterans aged 65 years or over were approved for VHC services (tables 14A.8).
Residential aged care services

Residential aged care is provided in aged care homes on a permanent or respite (temporary) basis. Residents receive accommodation, support (cleaning, laundry and meals) and personal care services (assistance with showering and toileting), and nursing care where required. Nationally in 2024-25, 259,592 older people were in permanent residential care (equivalent to 51.5 per 1,000 older people) and 81,964 older people were in respite care (equivalent to 16.3 per 1,000 older people) (table 14A.2–3). 

At 30 June 2025, the occupancy rate of residential aged care services was 89.9%, the highest occupancy rate since 2018. The occupancy rate had been trending downwards until 2023, when the occupancy rate was 86.1% (the lowest rate over the reported time series), before increasing in the two most recent years. The number of operational residential aged care places increased slightly over the same period (195,825 in 2016 to 224,493 in 2025) (table 14A.14). There were 66,739 permanent admissions to residential aged care in 2024-25 (table 14A.34). 

Information on the classification of residential aged care residents is in table 14A.13. Rates of operational aged care places by selected characteristics are in tables 14A.15–17.

Flexible Care services

Where mainstream residential or home care services are unable to cater for an older person’s specific needs, flexible care options are available:

  • Transition Care provides time-limited care to older people after a hospital stay to help maximise their independence and minimise functional decline, thereby avoiding premature entry into residential aged care. Nationally in 2024-25, 24,939 older people received support from Transition Care services (table 14A.2).
  • Short Term Restorative Care (STRC) is similar to transition care. It provides time-limited care to improve the physical functioning, wellbeing and independence of older people, but without the need to have been in hospital. Nationally in 2024-25, 11,490 older people received STRC services (DoHDA 2025).
  • Multi-Purpose Services (MPS) provide flexible and integrated health and aged care services in small communities in regional and remote areas that cannot support both a hospital and a separate aged care home. At 30 June 2025, there were 3,798 operational MPS program places (DoHDA 2025a).
  • The National Aboriginal and Torres Strait Islander Flexible Aged Care Program provides culturally appropriate aged care to older Aboriginal and Torres Strait Islander people close to their home or community. Services funded under this program can deliver a mix of residential and home care services. At 30 June 2025, there were 1,829 operational flexible allocated places under this program, with 457 in flexible residential aged care facilities (DoHDA 2025a).

Care providers

Nationally at 30 June 2025, private for-profit organisations provided the largest proportion of operational home care packages (40.0%) and residential aged care places (38.0%) (figure 14.2; tables 14A.11–12).

A PDF of Part F Community services can be downloaded from the Part F sector overview page.