Resource details

  • Author: Hammond Innovations
  • Read time: 1 min. read
  • 24 April 2026

Aged care reform: $3 billion boost means major changes for how providers plan, deliver and design care

  • Author: Hammond Innovations
  • Read time: 1 min. read

Australia’s aged care system is under intense pressure. Demand for residential places is rising fast, construction costs remain high, and providers are being asked to deliver more complex care in environments that were never designed for today’s needs.

In response, the Federal Government has announced it will commit $3billion in new aged care investment in the 2026 budget, at the centre of this is a package to deliver 5,000 additional residential aged care beds each year. The package includes capital subsidies, changes to the Accommodation Supplement, targeted funding for higher‑needs residents, and reforms to Support at Home.

But even the Government’s own Independent Review of Residential Aged Care Accommodation Pricing makes one thing clear: 5,000 beds a year won’t be enough. To keep pace with demand, the sector will need to deliver more than double that number and do so in a way that is financially sustainable, clinically appropriate and fit for the future.

That’s where the real challenge lies.

Accelerating construction alone doesn’t solve the problem. Building beds quickly, without rethinking design, risks locking in environments that increase costs, constrain care models, and place extra pressure on staff and residents alike. Funding helps, but funding on its own won’t deliver better outcomes.

What’s needed now are new ways of working: partnerships that translate policy ambition into facilities that genuinely support dementia care, operational efficiency and evolving funding models.

This is where Hammond Innovations comes in.

We work alongside providers to turn government reform into practical, workable solutions, long before designs are locked in and risks become costly to unwind. Our approach is hands‑on and strategic from day one, embedding design expertise early to strengthen business cases, reduce risk and ensure built environments actively support care delivery.

Whether supporting a new development or revitalising an existing facility, we partner closely with project teams to shape the decisions that matter most - layout, flow, functionality and future adaptability - before they’re set in concrete. Getting the design strategy right upfront has never been more important.

Our Design Project Partner model is built for exactly this moment. We work in true partnership from the earliest planning stages to ensure the built environment aligns with care strategy, workforce needs and future policy change, not just today’s requirements.

Drawing on more than 30 years of experience, we bring strategic design thinking in early to:

    • reduce delivery and operational risk
    • avoid costly redesigns down the track
    • support people living with dementia
    • streamline staff workflows
    • and create facilities that remain viable and adaptable over the long term

Hammond Innovations helps providers move beyond policy on paper — and deliver places that truly work.

Find out more about how we can help as your design project partner.