But the funding commitment, made in the wake of a damning royal commission report, was "only a beginning", according to Shepparton Villages chief executive Veronica Jamison.
"They can't do everything at once, that's the reality,” she said.
"But other countries spend much more on aged care compared to Australia. For us to catch up, more money will need to be spent.”
In an announcement made on Monday, March 1, the government pledged it would spend $452 million on immediate measures to transform Australia's aged care sector.
This will include strengthening sector governance, improved access to home care, providing financial assistance to residential aged care providers and building the aged care workforce.
This came after a final report with 148 recommendations was released following a two-year investigation into the sector.
Commissioners called for staff in aged care to have a minimum level of training at the same standard as the childcare sector.
Recommendations also included approving home care packages within one month from when a person was assessed and clearing the lengthy waitlist by the end of the year.
It's a measure long called for by aged care providers across the country, as more than 100,000 Australians currently wait to be approved for a package.
“Some have had to wait up to 12 months, with people even dying while on the waitlist,” Ms Jamison said.
“But people should have to wait no longer than 90 days.
“We'll always need residential care, but most people want to stay home and maintain their independence for as long as they can through home care.”
The report also recommended replacing the 1997 Aged Care Act, a measure Minister for Health and Aged Care Greg Hunt confirmed would "immediately commence".
The commission found the current act was motivated by government attempts to make budget savings.
But the government promised the new act would provide a "strong, fresh foundation" to enable reforms to be implemented and drive cultural change.
"We need real transformational change, and that's where these upstream measures are so important,” Ms Jamison said.
The government also pledged it would immediately invest an additional $189.9 million for residential care providers.
This will aim to provide stability and maintain services while the government considers the recommendations of the Royal Commission’s final report.
The support will equate to an additional $1145 of funding per resident for those in rural, regional and remote areas.
Ms Jamison hoped this increased funding would be the first step towards all Australians enjoying equitable access to quality aged care.
“I want to see regional, rural and remote providers be able to provide services and care to people in the communities they live in so they don't have to leave,” she said.
“And that comes with a cost.
“The recent closure of Murchison Community Care is a classic example. The people that lived in that home had to leave their community.
“The system needs to be structured in such a way so those providers are funded accordingly so they can continue to operate viably.”
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