Budget delivers for older Australians, homeless youth, end of life care: CHA

Catholic Health Australia (CHA) has welcomed tonight’s federal budget measures that prioritise aged care, youth homelessness and end of life care, and the Government’s commitment to consult on private health reform.

Aged Care

CHA has backed the Federal Government’s investment in aged care, including faster access to Support at Home packages which are essential to bring down the wait list for those needing care.

“The expansion of Support at Home packages is essential and tonight’s investment in accelerating packages is a good start. We have been calling for 60,000 additional packages to prevent 200,000 older Australians being left without care by mid-2027. Every additional package funded means someone’s parent or grandparent getting the support they need to age at home with dignity,” said Alex Lynch, Director of Aged Care at Catholic Health Australia.

CHA appreciates the Government’s response to our call to increase the Accommodation Supplement and is pleased to see the significant investment of $1.1bn for this measure. We also endorse new targeted capital subsidies for residential aged care.

“Providers caring for the most vulnerable older Australians have been doing it incredibly tough,” said Mr Lynch. “Accommodation funding simply hasn’t been covering the cost of maintaining buildings and keeping facilities safe and comfortable. This uplift will help protect access to care while broader pricing reform is finalised.”

CHA also offered its support for the pre-budget decision to move personal care services, including showering, dressing and continence care, into the clinical care category, making them free of charge from 1 October 2026 – which the sector more broadly had called for.

“This Budget takes steps to address the aged care crisis and the Government deserves credit for listening to the sector and to older Australians,” said Mr Lynch.

CHA is continuing to lead discussions with the Government about prioritising extra consumer protections for people receiving home aged care while avoiding price caps which could have unintended consequences.

Digitising hardship provisions for aged care is in line with CHA advocacy and will improve equity and access for older Australians.

Private Health

CHA welcomes the Government’s commitment to consult on private health reform, with $3.2m allocated in the Budget for consultation with stakeholders.

“We look forward to engaging constructively in this process, but reform cannot come soon enough,” Dr Katharine Bassett, Director of Health Policy said.

“Around 90 private hospital services have closed in the last six years, including maternity wards, surgical units and mental health facilities that communities depended on. This has been driven by insufficient funding from insurers.”

CHA is calling for the Government to legislate a 90 per cent minimum benefit-payout ratio for private health insurers to deliver adequate funding to patients and hospitals, alongside reforms to support Hospital in the Home.

CHA also welcomed the decision to reverse the reclassification of intravitreal eye injections as Type C out-of-hospital items.

“This is a sensible decision that CHA has been calling for as it protects affordable access for the many Australians who rely on these sight-saving treatments,” Dr Bassett said.

CHA noted the Government’s decision to remove the age-based uplift to the Private Health Insurance Rebate from 1 April 2027, which is expected to save $11bn over the decade.

“CHA will be monitoring the impact of this change closely, particularly on lower-income Australians and those in regional and rural communities, who already face significant barriers to accessing care,” Dr Bassett said.

Public Health

CHA welcomes the additional $24.4bn over five years to strengthen public hospitals, taking total Commonwealth funding to a record $220bn to 2030-31.

“This is a significant and much-needed investment that recognises the sustained pressure our public hospital system is under,” Dr Bassett said.

“The accompanying $79.2m investment in digital health reforms, alongside $598.3m for My Health Record, will help deliver the connected, patient-centred care Australians expect.”

CHA endorsed the Government’s $276m continued funding over two years to help older Australians move out of hospital and into appropriate aged care sooner.

“This is a measure CHA has long championed. With around one in ten public hospital beds occupied by patients waiting for an aged care place, this funding directly addresses one of the most pressing pressures on our public hospital system,” Dr Bassett said.

“Fixing bed-block requires investment on both sides of the hospital and aged care interface, and this funding recognises that.”

CHA also welcomed the $277.5m extension of the National Mental Health and Suicide Prevention Agreement to 30 June 2027, which maintains funding for critical services across the country.

“Mental health remains one of the most significant pressures on our health system, and continued investment in community-based services is essential to reduce avoidable presentations to hospital emergency departments,” Dr Bassett said.

“We urge governments to use this extension period to negotiate a longer-term agreement that gives services and the workforce the certainty they need to plan for the future.”

Mission

CHA welcomed funding to extend the “End of Life pathway” in Support at Home for older Australians undergoing palliative care at home who live beyond their initial funding period.

“Having advocated strongly for this change, we welcome this as a compassionate and practical improvement to a pathway that is already making a real difference for older Australians who want to die at home,” said Director of Mission Brigid Meney.

“Dying doesn’t always follow a timeline, and this extension recognises that reality. For people who have outlived their initial prognosis, and for everyone supporting them, the uncertainty of losing care funding at such a critical moment adds unnecessary stress to an already difficult time,” Ms Meney said.

CHA has welcomed a $59.4m boost to help young Australians out of homelessness through a new payment to help them access community housing.

“Having a place to call home provides more than just personal dignity, it drastically impacts a person’s health and wellbeing, including their ability to gain employment and participate actively in their communities,” said Ms Meney.

“Every day our member organisations are delivering care to the most vulnerable in our society, including families and young people who are some of the hardest hit during what is now an intergenerational housing crisis.”

NDIS

CHA acknowledges reform is needed to safeguard the sustainability of a life-changing scheme, and urges the Government to consult thoroughly with disability organisations and people directly impacted.

“The people most at risk in any reform process are those with the least capacity to advocate for themselves. They deserve a transition that is careful, transparent and genuinely consultative,” said Ms Meney.

CHA’s Budget Priorities website will continue to guide our advocacy on these key issues. Visit https://cha.org.au/budget-26-27/