The needs of our ageing population is not being met by an aged care sector that is being squeezed on all sides.

Beds in residential homes are sitting empty around the country despite long waiting lists – some homes are operating at just 50 per cent capacity and some have closed altogether – in part due to chronic worker shortages.

People are also being held in hospital due to the lack of beds – a miserable situation for those affected and a waste of taxpayer money. There is very little new investment or new construction in the pipeline even as demand for beds is rising.

Poor pay rates have made it difficult to attract long- term staff into aged care.Credit: Marija Ercegovac

A report this week in this masthead about the scale of the funding crisis and the shortage of beds is a warning that the government must act swiftly to introduce its aged-care changes into Parliament in September.

The expected changes to how older Australians will pay for care – in which Australians with more assets will pay a greater share of their everyday costs – are an important first step to secure the financial sustainability of a system desperately in need of investment and workers.

The combination of new regulations, workforce shortages and financial challenges means many homes can no longer operate........

© The Age