The Prime Minister and state premiers have announced a new hospital funding deal, with the $25 billion agreement to run over the next five years. The funding is aimed at easing pressure on Australia’s hospital system as demand for health services continues to grow.

The new funding deal was warmly welcomed by many within the health sector. Healthcare leaders say it provides greater certainty for hospitals managing increasing patient demand.

However, critics argue the agreement does not include measures to address ongoing challenges in Australia’s aged care system. This is despite rising demand for support services across both metropolitan and regional communities.

The number of Australians aged over 65 is expected to double over the next 40 years. Those aged over 85 are projected to triple over the same period. This growth is expected to place increasing pressure on both aged care services and hospitals.

So, what is the issue?

Lack of aged care funding

Aged care advocates note that $2 billion in additional aged care funding had earlier been offered to the states. However, this funding was noticeably absent from the final deal.

Tom Symondson is the chief executive of Ageing Australia. He says this represents a missed opportunity for state and federal governments to work together to address the many challenges facing the aged care sector.

“This was a rare opportunity for state and federal governments to work together to improve outcomes for the thousands of older Australians stuck in hospital for extended periods, but that opportunity has been missed,” he told The Australian.

What can be done to address the situation?

“The growing number of long-stay older people in hospital should have been a clear warning for the states and Commonwealth that only joint efforts could improve the situation. This pressure will only increase, and addressing it will require action from all levels of government,” Mr Symondson said.

He argues that state governments, in particular, should do more to support Australia’s aged care system. As an example, he points to the Western Australian government’s new low-interest loan scheme. The scheme provides aged care providers with up to $20 million to construct, upgrade or refurbish facilities across the state. This helps to expand available care options.

However, the scale of the challenge remains significant. Last year, just 800 new aged care beds were built, but Mr Symondson warned that around 10,000 were needed to keep pace with rising demand as Australia’s population continues to age.

The shortage of aged care places has significant consequences for the wider health system, with many older Australians remaining in hospital while waiting for suitable care or residential placement. Without action, this pressure is expected to worsen.

“Every government in Australia can choose to prioritise the needs of older people – and they must. Older Australians deserve nothing less,” Mr Symondson said.

The increasing demand for aged care services makes it the perfect time to consider a career in the industry. As Australia’s population ages, providers are urgently seeking compassionate and skilled workers to support older people in hospitals, residential facilities and community settings nationwide. This growing need is creating strong job opportunities across a range of roles, offering stable employment and the chance to make a meaningful difference in people’s lives. This makes now an ideal time to explore opportunities in the sector.

Are you looking for a new career? Aged Care Resumes can help. We are pleased to offer various services including our resume writing service and cover letter writing service, helping job seekers present their skills and experience confidently to potential employers.

Article References

Ison, S (1 February 2026) ‘National cabinet failed ‘golden opportunity’ for aged-care sector’, The Australian, accessed 2 February 2026.

Lloyd-Jones, K (2 February 2026) ‘Hospital funding deal fails to target aged care needs’, Australian Aging Agenda, accessed 2 February 2026.

Lloyd-Jones, K (7 January 2026) ‘$100M WA loan scheme opens’, Australian Aging Agenda, accessed 2 February 2026.