Aged care operators will receive an extra $10 a day per resident to improve the standard of care, while 80,000 new home care packages will be created as part of a $17.7 billion budget injection aimed at rectifying the widespread neglect of older Australians.

Nursing home residents will also be guaranteed to receive a minimum of 200 minutes a day of care time, while the government will recruit tens of thousands of more workers and abolish the existing bed licence system, encouraging greater competition in the sector.