The Retirement Living Council (RLC) has criticised the Federal Budget for failing to deliver deeper structural reforms to support Australia’s ageing population, despite the announcement of a $3.7 billion aged care package.

The package includes additional aged care beds and faster access to Support at Home and free personal care services, but the industry body says the response, though welcome, does not address the long-term pressures driving demand across hospitals and residential aged care.

According to the RLC, the Commonwealth continues to prioritise short-term crisis management over preventative policy reforms needed to keep older Australians healthier and independent for longer.

“The Commonwealth is choosing the cheapest option on paper, but it becomes the most expensive option in practice when older Australians end up in hospitals and aged care earlier than they should,” RLC Executive Director Daniel Gannon says.

Arguing that Australia’s ageing system remains reactive rather than preventative, he warns that current settings would place increasing strain on healthcare infrastructure and workforce capacity. The Commonwealth’s own projections show Australia would need to open a new residential aged care facility every three days for the next 20 years just to keep pace with demand.

“That is what happens when systems are designed around crisis response instead of prevention. We are still operating a system that waits for older Australians to hit crisis point before support escalates,” he elaborates.

“This isn’t financially sustainable, it isn’t operationally sustainable, and it isn’t workforce sustainable. We can’t build our way out fast enough if policy settings keep pushing people into higher care earlier than necessary,” Gannon says.

Retirement living communities are increasingly positioned to help older Australians remain independent for longer, he notes, with 79% of retirement villages now offering some form of federally regulated care onsite.

The RLC also seeks reform to the Commonwealth Rent Assistance (CRA) program, arguing that current settings discourage older Australians from moving into safer, age‑appropriate housing.

CRA use among Australians aged over 65 has increased by 70% since 2013, reflecting growing levels of rental stress among older people. However, outdated CRA settings continue to lock older Australians out of crucial support, Gannon says.

“CRA reform is one of the smartest investments the Commonwealth can make to keep older Australians healthier, connected and independent,” he notes.

“We need a full-scale review of CRA because this is not about creating a new welfare system. It’s about fixing outdated rules that no longer reflect the real cost of housing older Australians safely.”

The Council also warns that without greater investment in preventative housing and care models, pressure on the public hospital system would continue to intensify. Almost 3,300 older Australians currently occupy public hospital beds despite being medically ready for discharge.

“Hospitals are becoming the overflow valve for a system under immense strain, and yet retirement living – one of the clearest preventative solutions available right now – continues to sit on the sidelines of national reform conversations,” Gannon says.

The RLC also cites research suggesting that retirement living communities help prevent around 14,000 hospital admissions each year through social connection, support services and preventative care initiatives.

Image: https://www.propertycouncil.com.au/advocacy/our-divisions/retirement-living-council

Architecture News & Editorial Desk

Let’s connect!