Aged care sector warns Albanese government’s planned $4.8bn spend not enough to keep homes open

Growing demand and ageing population expected to drive up costs by 23% in fifth-largest area of government expenditure

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The Albanese government will spend an extra $4.8bn on aged care in next month’s budget to maintain funding commitments, but the sector has warned it will still not be enough to keep all residential care homes open amid staff shortages.

The cost of aged care is expected to rise by 23% next financial year to $29.6bn and become the fifth-largest area of government expenditure.

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