Tens of thousands of additional home care packages and mandating the time staff spend with aged care residents are at the heart of the federal government's nearly $18 billion response to the damning findings from the aged care royal commission.

Tuesday's budget revealed the sector will receive $17.7 billion over five years, after the Royal Commission into Aged Care Quality and Safety estimated one-in-three people living in aged care in Australia experience neglect, physical or emotional abuse.

Eighty thousand extra home care packages will be provided over the next two years, despite the royal commission finding that, as of June 2020, almost 103,000 older people were waiting for a package.

However, Health Minister Greg Hunt insisted that would be enough to clear the current backlog.

The royal commission wanted the waitlist cleared by December 2021, but even those within the aged care sector conceded that was an ambitious goal.

Of the additional packages, 12,000 will be provided for those who need the highest level of care, with 5,000 reserved for those who need basic care to be reallocated.

In total, the government said, more than 275,000 home care packages will be available to senior Australians by 2023.

More time for residents and workforce boost

The royal commission found the aged care system was "understaffed, and the workforce underpaid and under-trained."

Residents complained about unanswered call bells, high rates of staff turnover and a lack of time spent with them.

In response, from 2023, staff will be required to spend at least 3 hours and 20 minutes a day with each aged care resident, increasing to 3 hours and 35 minutes by 2024.

At least 40 minutes of that time will need to be with a registered nurse.

On top of that, from July next year, at least one registered nurse will need to be on shift at every facility, for a minimum of 16 hours a day.

The government is spending more than $650 million to grow and upskill the aged care workforce, and some of that money will go towards ensuring those already in the system don't leave, with registered nurses to be given $3,700 a year if they stay with the same aged care provider for a year.

An additional 33,800 training places will be created over two years for personal care workers.

Treasurer Josh Frydenberg said the government is also spending more than $650 million to grow and upskill the workforce, including an additional 33,800 training places over two years for home care workers.

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More money for residents

The royal commission's report found funding for aged care is insufficient and insecure, which affects access to and the quality of care.

An additional $10 a day per resident will be provided to residential aged care facilities from July 1, in line with the royal commission's recommendations.

By the end of the forward estimates, spending in aged care will be at a similar level as the investment in Medicare for the first time in history, costing more than $31 billion annually.

But a recent Grattan Institute report calculated the aged care sector would need extra $7 billion a year on top of that, just as a starting point.

Mr Hunt did not outline exactly how the government would pay for its changes, saying the money would come from revenue, as the government had agreed not to implement a new tax.

The 1998 Aged Care Act will also be replaced by 2023, in line with the royal commission's recommendations.

Star ratings and improving safety

The royal commission heard of physical abuse and restraint against residents at the hands of staff members.

The ABC investigated a story showing dementia patients strapped to their chairs in a Sydney nursing home, with one man spending 14 hours in restraints within one day.

The government is now spending $7 million to strengthen the regulation of the use of physical and chemical restraints, while an additional almost $150 million will help it respond to complaints and initiate investigations quickly.

The Aged Care Quality and Safety Commission will also receive about $25 million to undertake an additional 1,500 safety audits in residential care facilities in 2021-22, a dramatic increase on the 600 audits scheduled during that time period.

After complaints about a lack of transparency in the aged care sector, the federal government is also introducing a new funding model for residential aged care.

That will support introducing a star ratings system, so older people and their families can easily compare the quality and safety performance of services and providers.

The government said the $200 million system will help Australians have an increased and informed say in the care they receive.

Regional boost

Regional aged care providers across the country are closing at an alarming rate, with many in dire financial circumstances.

The budget aims to go some way to addressing that problem, with $630 million over five years to improve access to services for people in regional, rural and remote areas.

This includes $370 million over four years for aged care providers to make improvements to their buildings and expand into underserviced areas.

The government estimates this will also provide about 1,400 construction jobs and benefit about half a million senior Australians in rural and remote locations.

Rejects six recommendations, while others subject to further consideration

The federal government has accepted 85 per cent of the 148 recommendations either entirely or in-principle, while it is yet to decide on some, including whether to introduce new civil penalties for providers if they fail to provide high-quality safety care for residents in a way that could cause harm.

Six have been rejected outright, including, as expected, a Medicare-style levy to help pay for changes to the system.

"The focus in this budget has been on achieving that outcome of improving the quality and safety of aged care by strengthening our regulators, by ensuring there's 1,500 more audits a year with a new act and new authority," Mr Frydenberg said.

"It's not just more money, it's more reform."

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