Dementia Australia has welcomed a $200 million federal government investment that will fund a further 20 Specialist Dementia Care Program units nationally, alongside an expansion of the Hospital to Aged Care Dementia Support Program, as part of the broader 2026-27 aged care funding package.
The announcement directly addresses one of the most persistent gaps identified by the Royal Commission into Aged Care Quality and Safety — the shortage of facilities equipped to handle the most complex behavioural and clinical needs associated with dementia.
Why Specialist Units Matter
Specialist Dementia Care Program units are designed for people whose dementia-related symptoms — including significant behavioural and psychological symptoms — cannot be safely or appropriately managed in standard residential aged care settings. Until now, the limited number of these units nationally has meant long waits and, in some cases, people being placed in facilities not equipped for their level of need.
“We applaud the Federal Government’s decision to respond to community and sector feedback by reclassifying showering, dressing and continence management as clinical care under Support at Home. This means older Australians will now have the full cost of these services covered.”— Dementia Australia, Federal Budget response
The Scale of the Challenge
More than 400,000 Australians currently live with dementia, a figure projected to climb toward one million by 2058 without a significant medical breakthrough. Dementia remains Australia’s second leading cause of death and the single greatest cause of disability among older Australians.
What the Expansion Includes
Alongside the new specialist units, the Hospital to Aged Care Dementia Support Program is being expanded — a program designed to support smoother, safer transitions for people with dementia moving from hospital care into appropriate aged care settings, reducing the risk of inappropriate or delayed placements.
What Families Should Know
For families currently supporting a loved one with complex dementia symptoms, the expansion of specialist units should gradually ease access pressure, though the rollout will take time given the specialised staffing and facility requirements involved. Families are encouraged to discuss dementia-specific care needs directly with My Aged Care during the assessment process to ensure appropriate referral pathways are considered.
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