Spending on aged care and support services

This page presents the total expenditure on aged care services and assessments that is attributable to the additional cost of caring for people with dementia as well as Australian government spending on dementia-specific support services in 2022–23.

Key statistics

In 2022–23 an estimated $3.2 billion was spent on aged care services and assessments directly for dementia
65% ($2 billion) of spending on aged care for dementia was for permanent residential aged care
25% (nearly $800 million) of spending on aged care for dementia was for community-based aged care
In 2022–23, the Australian Government provided almost $126 million to fund dementia support programs and initiatives

Aged care expenditure

There are a range of government-funded aged care services available to provide care and assistance to those who need it, including: home-based care and support, short-term care and respite, and residential aged care services.

In 2022–23 the Australian government spent close to $26 billion on aged care services and assessments, and nearly $3.2 billion (12%) of this was estimated to be spent due to dementia. 

Of the estimated $3.2 billion spent on aged care services and assessments for dementia: 

  • 65% ($2 billion) was for permanent residential aged care
  • 25% ($797 million) was for community-based aged care services
  • 5.9% ($187 million) was for respite care services
  • 3.3% ($105 million) was for flexible aged care services
  • 0.7% ($21 million) was for aged care assessments (Figure 17.2).

The proportion of spending on aged care services and assessments due to dementia ranged from 6.1% for the Commonwealth Home Support Program to 51% for the National Aboriginal and Torres Strait Islander Flexible Aged Care program (Table S17.2). The large proportion of spending on the National Aboriginal and Torres Strait Islander Flexible Aged Care program for First Nations reflects the burden of dementia on older First Nations Australians.

Community-based aged care expenditure for dementia included:

  • $665 million for people with dementia receiving Home Care Packages – services that provide support for people with multiple or complex care needs to live independently in their own homes. Of this, 63% was for Level 4 packages, which are designed for people with high care needs (Table S17.3).
  • $105 million for people with dementia under the Commonwealth Home Support Program – a program that provides entry level care for people who require a low level of support to remain living independently and safely at home.
  • $16 million for people with dementia receiving the Veterans Home Care program – a program that provides domestic assistance, personal care, and respite care to support veterans and their families to live independently in their own home.
  • $12 million for people with dementia receiving the Department of Veterans' Affairs Community Nursing program – which provides clinically required nursing and personal care for veterans and their families in their own home.

Expenditure on respite care services for dementia included:

  • $120 million for people with dementia receiving residential respite care – short-term care delivered in residential aged care homes
  • $67 million for people with dementia receiving community-based respite care, short-term care delivered in the person’s home, centre-based day respite and overnight or weekend cottage respite

Expenditure on flexible aged care services for dementia included:

  • $75 million for people with dementia receiving the National Aboriginal and Torres Strait Islander Flexible Aged Care Program – which provides culturally appropriate aged care at home and in the community for First Nations people.
  • $31 million for people with dementia receiving the Transition Care Programme – which provides short-term care to restore independent living after a hospital stay.

For more information on aged care services for people with dementia, refer to Aged care needs assessments and Community-based aged care.

Figure 17.2: Estimated Australian Government aged care spending due to dementia in 2022–23

Bar graph showing Australian Government expenditure on different aged care programs in 2022–23 that were directly attributable to dementia.

Bar graph showing Australian Government expenditure on different aged care programs in 2022–23 that were directly attributable to dementia.

Note: Expenditure for residential aged care services is for permanent residents only.

Expenditure on dementia-specific support services

There are dementia support programs and initiatives funded by the Australian Government and delivered by individual organisations. These programs are designed to assist people with dementia and their carers, as well as the dementia care workforce.

In 2022–23, the Australian Government provided almost $126 million to fund dementia support programs and initiatives under the Dementia and Aged Care Services Fund. This included:

For further information on the Dementia and Aged Care Services Fund and provision of dementia support services in recent years, refer to:

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