The federal minister in charge of aged care admits the government was "shocked" by the findings of the royal commission into the sector's interim report.
The report released on Thursday found aged care services are underfunded and poorly managed, but minister Richard Colbeck said most shocking were the "stories of neglect".
"The stories of the way the system wasn't working for older Australians," Senator Colbeck said.
"We need to turn that around. That's what the process is about. That's why we called the royal commission.
"It puts the government on notice, the industry on notice and it puts the community on notice, we need to change the approach of how we care for older Australians."
The report said there was urgent action required in three areas.
* To provide more home-care packages to reduce the waiting list for higher level care at home.
* To respond to the significant over-reliance on chemical restraint in aged care, including through the seventh community pharmacy agreement.
* To stop the flow of younger people with disability going into aged care, and expediting the process of getting those younger people who are already in aged care out.
Senator Colbeck said the government was working to improve all three areas, with a focus on ensuring funding for home care places was flowing through and not sitting in government coffers.
Australian Associated Press