Federal Budget: $2.6bn for wages and $291.6m for aged care not good enough says opposition

On Tuesday night, Treasurer Jim Chalmers delivered his fourth federal budget, which, as expected, focuses heavily on the delivery of cost-of-living relief for Australians.

The Albanese government has already made a number of significant pledges towards the improvement of national healthcare systems, including bulk-billing incentives and $689 million to cap the price of medications under the Pharmaceutical Benefits Scheme (PBS).

The PBS covers more than 900 medicines (5000 different brands), and the budget will see about 80 per cent of these be cut from $31.50 to $25.

Read more: $8.5B to boost bulk-billing incentives | $1.7B in one-off funding for public hospitals | $689M to cap PBS medications at $25 | $644M to establish an additional 50 Medicare Urgent Care Clinics | $573M for women's health services

This budget also included the $2.6 billion boost to the wages of aged care nurses, announced earlier this month.

Most notably for the aged care sector, the Labor government has announced that it will provide $291.6 million over the next five years to aid in the delivery and implementation of new reforms, with an additional $12.7 million to be allocated in 2029-30.

The $291.6 million will be allocated as follows:

• $116.1 million in 2025–26 in additional funding for the Aged Care Quality and Safety Commission to deliver its regulatory functions under the Aged Care Act 2024 from 1 July 2025
• $53.2 million in 2025–26 to continue implementation of the Single Assessment System and support the staged digital implementation of the Aged Care Act 2024 to ensure continuity of aged care assessment services
• $47.6 million over four years from 2025–26 (and an additional $12.7 million in 2029–30) to support First Nations organisations to deliver culturally appropriate aged care assessments for First Nations people
• $37.8 million in 2025–26 for the Aged Care Quality and Safety Commission to support the staged digital implementation of the Aged Care Act 2024
• $24.4 million in 2024–25 for additional Commonwealth Home Support Programme assessments to meet new requirements under the Aged Care Act 2024
• $5.7 million in 2025–26 for the National Centre for Monitoring Dementia to provide dementia data and monitor progress with the National Dementia Action Plan
• $3.6 million in 2025–26 to support an evaluation and stakeholder engagement in a review of the Aged Care Quality Standards
• $2.4 million in 2025–26 to extend the Care Together Program to support the start‑up and development of cooperative and mutual enterprises, and deliver business resources and professional support to the aged, disability and veterans’ care sectors
• $0.7 million in 2025–26 for Uniting Care to continue the operation of the Aged Care Workforce Remote Accord to support the aged care workforce in remote and very remote communities.

Ahead of handing down Tuesday's budget Treasurer Jim Chalmers referred to the upcoming federal election as “a referendum on Medicare.”

“The budget is about strengthening Medicare and the election is Australia’s opportunity to protect it,” Dr Chalmers said.

“And safeguard it against Peter Dutton. The election will be a referendum on Medicare.”

Tropical Cyclone Alfred has delayed the yet-undeclared election, forcing the government to bring down a fourth budget, which hasn't happened for 80 years.

When asked if Tuesday's announcement was an election-boosting budget, the Treasurer answered “it’s a very welcome opportunity to put the economy front and centre on the eve of an election.”

“This is not a budget for the election. It’s a budget to build Australia’s future,” he said.

It is expected that Prime Minister Anthony Albanese is preparing to call the election, possibly within days.

Shadow minister for health and aged care Senator Anne Ruston has slammed the Albanese government for not meeting the demands of the aged care sector, The Australian reports.

“Anthony Albanese and his Aged Care Minister have abandoned the aged-care sector and the older Australians who rely on it,” Senator Ruston said.

“Despite numerous promises by the government that they would be ready for the changes, it is now clear they will not be. Instead of being honest and admitting to their failure to be ready by July 2025, they have left the sector and older Australians with uncertainty, fear and distress.

All eyes will now be on how the Coalition responds, as Opposition Leader Peter Dutton delivers his budget-in-reply speech, which is expected to outline a new policy, in parliament tonight.

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