The government will pump $537 million into the aged care sector, covering extra home care packages, reducing the use of medical restraints and a deadline for removing younger people with disabilities from aged care.
At a cost of $496.3 million, an additional 10,000 home care packages will be provided from December 1 this year, focusing on people who need a higher level of care.
"I think there are few families around the country, my own included, who are not unfamiliar with the difficult decisions that are made about relatives and loved ones who are placed into aged care facilities," Prime Minister Scott Morrison said.
"We can and must do better in providing improved support for our older Australians."
From January 1, doctors will have to apply for additional approval to prescribe chemical restraint drug risperidone, as part of $25 million will be spent to reduce the use of the drugs.
Prime Minister Scott Morrison said amendments to regulations around the drugs would make it clear that chemical restraints should only be used as a last resort and pharmacists will review medications more often.
An extra $10 million will also be spent this financial year to increase dementia training for aged care workers.
The government has also set itself deadlines to remove younger people with disabilties from aged care, with no new people under 65 to be entering aged care by 2022, and no people under 65 to be in aged care by 2025. The pledge includes another deadline, for no people under the age of 45 to be in aged care by 2022.
Mr Morrison said 5,606 younger people with disabilities were in aged care facilities.
Health Minister Greg Hunt said the anti-psychotic drug risperidone had been overused for chemical restraint purposes.
"This will provide a break, a restraint and an oversight on the use of antipsychotics in our aged care homes to protect our residents," he said.
Labor has said the extra home care funding places doesn't go far enough.
"To announce 10,000 packages when the royal commissioners have said it is neglect to have 120,000 older Australians still waiting on the home care list is simply not good enough," opposition spokeswoman on ageing Julie Collins said.
Advocates and peak bodies welcomed the funding announcement, but said much more was needed for reform in the sector.
COTA Australia has welcomed the announcement, but chief executive Ian Yates said home care wait times needed to be addressed, so people waited no longer than 60 days for a package.
"Simplifying the process by creating a single body to assess home care applications will help create a streamlined and efficient process for implementing this funding," Mr Yates said.
"We know that 93 per cent of people waiting on the home care packages waitlist have been approved for Home Support services, but it is unknown how many of these older Australians are actually receiving services, and we know many are not."