Australia’s shortage of residential aged care places is leaving thousands of older people waiting in hospital after they are ready to leave but cannot find suitable care.
Ageing Australia estimates the country needs around 10,000 additional residential aged care beds each year to meet demand. However, net supply grew by only about 800 beds in 2025. More recently, developments covering more than 3,600 proposed beds have reportedly been shelved following the latest federal funding decision.
The shortage is already affecting hospitals. State and territory figures published in September recorded 3,732 patients waiting in hospital for aged care placements, including 1,272 in Queensland and 1,027 in NSW. Finding a suitable placement can be particularly difficult for people with complex needs, including dementia.
The Federal Government has announced measures intended to deliver an additional 5,000 beds annually, while the residential care base price increased by 2.55 per cent from October. However, providers continue to argue that current funding is insufficient to support expansion.
The challenge extends beyond building new facilities. Australia also needs enough appropriately staffed places, with the right level of care, available where older Australians need them.