Oct 14, 2026

“Duty not being met”: NSW lashes Albanese Government over aged care

The Minns Government has accused the Albanese Government of failing in its aged care responsibilities, announcing a $28 million rescue pilot while an independent report warns the number of patients stranded in NSW hospitals could grow more than sixfold by 2036.

Health Minister Ryan Park said the report showed Canberra was falling short of its core obligations.

“The Commonwealth Government is responsible for the provision of aged care and NDIS placements, yet this report shows that this duty is not being met and thousands of hospital beds will be lost as a result,” Mr Park said.

NSW Steps in

The NSW Productivity and Equality Commission (PEC), which the state commissioned to examine the issue, modelled a jump in older stranded patients from around 1,100 today to more than 7,000 within a decade. These are people medically ready to leave hospital but with nowhere to go.

The report estimates the Commonwealth needs to deliver 2,600 additional residential aged care beds in NSW every year. It is currently delivering only a quarter of that. The PEC recommends Canberra increase aged care funding, separate from funding for healthcare and hospital activity.

With federal Support at Home packages not arriving fast enough, the state will fund interim services for patients waiting to leave hospital, including wound care, symptom management, personal care, domestic help, assistive technology and home modifications.

The pilot is expected to help more than 300 patients a year and is part of a $35.7 million Aged Care Response Package.

“We cannot continue to wait for the Commonwealth Government to deliver on its aged care responsibilities because too many people are already stranded in our hospitals and they deserve better,” Mr Park said.

“Complement, not replace”

The PEC report also delivers a warning to the state: any action it takes must complement, not replace, the Commonwealth’s role. Mr Park acknowledged this, saying the pilot was part of “a broader effort to get people the care they need and deserve, while unlocking hospital beds for those who need them the most.”

The government also pointed to measures within its own control, including geriatric care services that provide hospital-level care at home to more than 39,000 older patients, and stronger discharge planning. It said these had helped improve emergency department performance “despite the challenges arising from Commonwealth stranded patients.”

The criticism is notable because both governments are Labor. The NSW Government said it would keep working with Canberra and other states through the Hospital Discharge Joint Taskforce and the Health Ministers Meeting, recognising the problem requires “collective national action.”

The $28 million pilot would help around 300 patients a year, against a projected 7,000 stranded patients by 2036. The Albanese Government’s response to the report was not included in the NSW announcement.

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