A $200 million funding boost for dementia care was announced in this week’s federal budget. Experts have described the additional funding as long overdue. Dementia is one of Australia’s fastest growing health challenges. It’s estimated 446,500 Australians currently live with the condition. That figure has increased by 13,500 over the past year alone.

By 2065, the number of Australians living with dementia is projected to more than double to around one million. This will place increasing pressure on the health and aged care sectors.

So, what will the extra funding provide and how has the sector responded?

What will the extra funding provide?

As part of the increased funding, 20 specialist dementia care units will be rolled out across the country. Meanwhile, hospital programs that help dementia patients transition from hospital to residential aged care will be expanded from 11 to 20.

What has been the reaction?

The move was welcomed Senior Australian Of The Year and passionate dementia advocate Henry Brodaty and Centre for Healthy Brain Ageing co-director Scientia Professor Perminder Sachdev.

Speaking to news.com.au, the researchers said the increased dementia funding reflected growing recognition of the issue.

“Today’s (Tuesday’s) budget sends a strong and welcome step forward in recognising the scale and urgency of dementia in Australia,” they said.

“The $3bn investment in aged care – with a clear emphasis on dementia – is both timely and necessary as we face a rapidly growing number of Australians living with this condition.”

The professors warned that it is critical that the increased investment is matched by a sustained and strengthened commitment to research.

“Dementia is one of the greatest health, social and economic challenges of our time,” they said.

“And while this investment lays important groundwork, it must be matched by a sustained and strengthened commitment to research.”

They said that research is essential to improve diagnoses and develop new and more effective interventions. They argue that even small advancements in research can make a significant difference to those living with dementia and those who will be diagnosed in future.

Dementia Australia CEO Tanya Buchanan also welcomed the government’s commitment. However, she warned that the ten-year Dementia Action Plan must be fully implemented.

“It is vital the Commonwealth Government fully invests and implements the ten-year National Dementia Action Plan, which is a joint commitment led by the Federal Government in 2024, along with all state and territories,” Professor Buchanan told news.com.au.

The plan includes a national brain health awareness campaign and measures to address dementia throughout the life course.

With Australia’s ageing population continuing to grow and dementia rates projected to rise significantly in coming decades, the need for skilled aged care workers is expected to increase. The sector already plays a vital role in supporting Australians living with dementia, both in residential care and community settings.

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Article References

Saleh, L (13 May 2026) ‘$200m dementia boost in budget not enough, warns top expert’, Herald Sun, accessed 14 May 2026.