Aged care bed numbers collapse across Australia with just 578 added last year

A damning new report has exposed the shocking state of Australia’s aged care system, with some states already running out of beds as demand surges.

Exclusive: The number of aged care beds in Australia increased by just 578 in the last financial year, even lower than the 800 claimed by the government, and woefully short of the 10,600 extra beds needed each year to keep up with demand, according to a report.

In NSW, Tasmania and WA, the number of beds actually decreased, analysis by industry experts Boxwell & Co found.

NSW was down 203 beds, Tasmania 54 and WA 119.

Queensland saw a net increase of just 26 beds, SA 58 beds, while Victoria saw the biggest increase with 870.

The report confirms Australia’s aged care supply crisis has reached a critical tipping point with occupancy levels hitting 94.4 per cent and full capacity projected within three years. In some areas, there is already no immediate access to residential aged care.

The Boxwell & Co report warned there will be a potential annual shortfall of 18,000 aged care beds by 2030 unless urgent action is taken.

Minister for Health and Aged Care Mark Butler is under pressure after a damning new report revealed some states already running out of beds as demand surges. Picture: NewsWire / Martin Ollman

Shadow Minister for Health and Aged Care Senator Anne Ruston called the situation a “national disgrace”.

She said Labor has delivered only around five per cent of the required new aged care beds last financial year and has left 238,000 older Australians waiting for home care support.

“The result is devastating with older Australians languishing in hospital beds with nowhere to go, surgical waitlists blowing out and ambulances ramped for hours,” Ms Ruston said.

“Anthony Albanese promised to put the care back into aged care. Instead, he’s created a national crisis that is crippling our hospital systems, failing some of the most vulnerable in our community, and forcing the states and territories to deal with a mess of Canberra’s own making.”

Aged Care Minister Sam Rae acknowledged that facilities are ageing and capital is constrained. Picture: Istock

South Australia’s Health Minister Chris Picton said that aged care facilities in his state were 99 per cent full and that they were transferring older people who were well enough to a 5-star hotel in order to free up hospital beds for sick people.

Earlier this week Mr Picton and the NSW health minister spoke out about the “broken” aged care system after hearing of the plight of Anna Romanik, 80, who has advanced dementia, and has applied to 21 facilities but had no takers. She is currently in a hospital bed.

The Boxwell & Co report said the escalation in capital funding costs meant “returns per bed needed to be much greater to encourage further development at these higher costs”.

Aged Care Minister Sam Rae acknowledged that facilities are ageing and capital is constrained. He said viability has improved and confidence is returning.

“We want to work with the sector to see more developers and financiers step forward,” he said in a speech this week.”

He said an independent review will look at accommodation pricing in residential care to see if it is fair.

“The review will examine how we can better balance affordability for residents with the certainty and incentives that providers need to invest in high-quality accommodation,” he said.

Labor has also promised to deliver 83,000 Support at Home places by the end of this financial year.

Originally published as Aged care bed numbers collapse across Australia with just 578 added last year