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Government spending on aged care

Aged care services in Australia are funded by governments (federal, state, territory and local governments), non-government organisations (charities, religious and community groups), and personal contributions from those receiving care. Governments subsidise the cost of care and recipients contribute through fees and payments.

‘Government spending’ referred to in this section combines that of the Australian Government and state and territory governments. Around 95% of spending comes from the Australian Government. The data have been sourced from the Report on government services (SCRGSP 2017).

  • In 2015–16, governments spent around $17 billion on aged care with the majority—approximately 69% of this—going towards residential aged care.

  • This expenditure on residential care was 2.7 times the amount spent on home care and support—$11.5 billion was spent on residential care and $4.3 billion on home care and support. 

  • Government spending on aged care services has increased each year since 2011–12, as is seen in the graph below.

There is more information about government spending on aged care in the explore section. Find out how much money is spent, what it’s spent on, how spending has changed over time, and how spending varies between states and territories.