Aged care funding boost to bring enhanced services, but concerns remain
Government boosts aged care funding with higher daily rates for staff, meals and services, but experts warn costs still outpace support.
![<p>Portrait of happy senior women having tea together at a retirement home [Source Cecilie_Arcurs, iStock]</p>](https://agedcareguide-assets.imgix.net/news/articles/wp/iStock-1076508986.jpg?fm=pjpg&format=auto&w=550&q=65)
Portrait of happy senior women having tea together at a retirement home [Source Cecilie_Arcurs, iStock]
The Federal Government will increase funding to aged care in late this month in a bid to improve staffing, meals and daily services within residential facilities.
From 1 October 2025, the daily allowance to support each resident paid to providers of aged care will rise to $295.64 from $282.44. The increase is to fund greater staff wages and rising living expenses. On 20 September, the allowance to pay for food, cleaning and laundry will rise by 42 per cent from $15.60 to $22.15 a day.
Seniors and Aged Care Minister Sam Rae made the announcement of the injection, allowing providers to pay staff appropriately and deliver upgraded care.
“This is welcome funding for aged care facilities to fund higher salaries for staff and upgraded care to our loved ones,” he concluded.
The Government has also extended for another year its AN-ACC Transition Fund and it provides further support to smaller and rural aged care services that are facing higher costs and workforce pressures.
Sector groups have been pleased with increases but are warning that the added funds will still be short of the actual cost of meals, cleaning and other in-room services. Financial experts StewartBrown estimate these areas are still short by an estimated \$8 per resident per day.
For households, the injection will mean providers will be well placed to maintain the number of staff and improve standards of living each day. But authorities say many aged care facilities are still operating on a break-even basis, and repeated reviews will be needed to deliver the sustainable, high-end care promised by the Royal Commission.
