2026-03-25
8 min read
Health and Aged Care
Despite record funding increases following the Royal Commission, workforce shortages mean many aged care facilities still can't meet the mandated care minutes. We tracked where the money flows and where it stalls.
Department of Health, Disability and Ageing
62/100
The 2025-26 federal budget allocated $4.3 billion in new aged care funding — the largest single-year increase in the sector's history. On paper, this represents the government delivering on its response to the Royal Commission into Aged Care Quality and Safety. But six months into the financial year, the gap between funding allocated and care delivered is widening.
“Mum has dementia. She needs 2 hours of care a day. She gets 45 minutes. The carer rushes in, rushes out. Mum doesn't even remember their name because it's someone different every time.”
— Adult daughter and carer, Melbourne, aged care royal commission follow-up
Of the $4.3B, approximately $2.1B is earmarked for the new Support at Home program replacing the Home Care Packages waitlist. A further $1.4B funds the mandated 200 care minutes per resident per day in residential facilities. The remaining $800M covers compliance infrastructure, the new Aged Care Act implementation, and workforce incentive payments.
$2.1B
Support at Home program
“We applied for a home care package in 2023. Dad got his Level 4 package 14 months later. By then he'd had two falls and a hospital admission. The system nearly killed him to save money.”
— Son of home care recipient, Brisbane, Aged Care Quality submission
The mandated care minutes require an estimated 20,000 additional personal care workers nationally. As of March 2026, the sector has filled approximately 12,000 of those positions. Rural and regional facilities are hit hardest — some reporting vacancy rates above 30%. The $800M workforce incentive fund has attracted applicants but retention remains the core challenge, with average tenure in aged care sitting at just 2.3 years.
“We can have all the funding in the world, but if we can't get workers through the door and keep them, the care minutes target is just a number on paper.”
— CEO, regional aged care provider, NSW (interview, Feb 2026)
Our analysis of quarterly compliance reports from the Aged Care Quality and Safety Commission shows 38% of residential facilities are currently meeting the 200-minute target. This is up from 22% at the start of the financial year, but well below the government's own trajectory of 60% by March 2026. Metropolitan facilities in Sydney and Melbourne are performing best. Facilities in regional Queensland, western NSW, and northern Tasmania are furthest behind.
38%
of facilities meeting care minutes target
The government faces a policy choice: enforce the care minutes mandate strictly (risking facility closures in underserved areas) or extend the transition period (risking the political cost of appearing to walk back a Royal Commission commitment). The Department of Health has signalled a 'compliance support' approach for 2026, but the Aged Care Quality and Safety Commissioner has indicated enforcement action will begin in earnest from July 2026.
“I love my residents. I really do. But I can't feed a 90-year-old woman breakfast in 7 minutes. That's what my roster allows. Seven minutes.”
— Aged care worker, residential facility, Sydney, workforce inquiry submission
Sources & Methodology
Department of Health and Aged Care, 2025-26 Portfolio Budget Statements
Aged Care Quality and Safety Commission, Quarterly Compliance Report Q3 2025-26
Royal Commission into Aged Care Quality and Safety, Final Report (2021)
YourGov analysis of ACQSC provider compliance data (March 2026)
Interviews with 12 aged care facility operators (Feb-Mar 2026)
Read our full methodology →