This paper aims to support and promote an informed national policy debate on the sustainability of publicly subsidised aged care services in Australia. It draws on a comprehensive evidence base to outline the dimensions of the sustainability challenge.

It then offers four broad strategic approaches to addressing these issues:

• Reducing the rate of growth of demand for subsidised aged care services
• Improving the effectiveness of aged care services
• Improving the efficiency of service delivery
• Establishing more equitable funding for subsidised services