National Seniors has released a report, The Future of Aged Care in Australia, which states the current system of aged care is plagued by staffing and bed shortages; crumbling under financial pressures; and unable to meet the future demands of an ageing population.
Unless policymakers implement viable funding alternatives, burgeoning costs will render the sector unsustainable, says the report compiled for the lobby group by Access Economics.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
National Seniors chief executive Michael O'Neill said older Australians were already feeling the effects of a system in decline.
"In the past five years the ratio of more qualified to less qualified staff has dropped and the ratio of residents to staff has increased," Mr O'Neill said.
"Not only do nurses get paid $300 a week less in aged care, but when the system is run as a business, cost-cutting comes in the way of staffing reductions.
"This means consumers aren't getting the quantity or quality of care they should.
"They're waiting longer and longer for help - either in nursing home beds or at home - that just isn't there," he said.
"This situation is unacceptable in a country as advanced and as wealthy as Australia."
Mr O'Neill said he hoped the Gillard government's inclusion of mental health in the Aged Care portfolio was not a sign that the needs of older Australians were being downgraded.
