The federal government has unveiled a $3 billion aged care funding package that restores free in-home showering services, after the exclusion of personal care activities from earlier funding changes sparked sharp criticism from the sector.
The package addresses one of the most pointed concerns raised by aged care advocates over recent months — that essential daily activities like showering had effectively been stripped of dedicated funding under previous arrangements, leaving older Australians at risk of missing out due to cost.
A Welcome but Incomplete Fix
The Australian Nursing and Midwifery Federation welcomed the announcement as a meaningful acknowledgment of pressure on the system, while making clear that significant problems remain unresolved.
“While we’ve seen some significant reforms in aged care since the Royal Commission, our members continue to tell us that the system is still not fixed. The Budget funding package is an important acknowledgment from the Government that aged care is struggling under ever-increasing demand for services.”— Annie Butler, ANMF Federal Secretary
The Federation specifically welcomed the structural changes to funding for in-home personal care services, noting the basics of ageing with dignity should never be compromised by cost.
The Scale of Demand Driving the Crisis
The pressure behind this funding package has been building for years. More than 300,000 Australians received home care packages in 2025, a 12 percent increase on the previous year according to Australian Institute of Health and Welfare data. While wait times for higher-level Level 3 and 4 packages have improved significantly — falling from an average of nine months in 2023 to under four months in 2025 — overall demand continues to climb faster than the system can comfortably absorb.
Workforce shortages remain the single biggest structural challenge facing the sector, with an estimated 35,000 additional aged care workers needed nationally by 2030 just to keep pace with demand.
What’s Changed Since the Royal Commission
The Royal Commission into Aged Care Quality and Safety handed down 148 recommendations in 2021 following revelations of systemic neglect and abuse across the sector. Since then, mandatory 24/7 registered nursing has become a requirement in all residential aged care homes, incident reporting requirements have tightened considerably, and the Aged Care Quality and Safety Commission has expanded its unannounced inspection program.
Despite this substantial reform agenda, researchers continue to point to the same two pressures undermining progress: chronic workforce shortages, particularly in regional Australia, and residential facilities operating at or near capacity in many parts of the country.
What This Means Going Forward
The government has indicated further aged care measures will be detailed as part of upcoming Budget announcements. For families currently navigating the system, the restoration of showering support offers some immediate relief, though the sector’s workforce and capacity pressures are likely to remain the defining challenge well beyond this funding package.
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