Bendigo aged care advocate Ruth Hosking said Prime Minister Scott Morrison's $537 million pledge to help the aged care sector is badly needed but won't solve all the issues.
Mrs Hosking, who is also a member of the Council of the Ageing Victoria, said she thought smaller communities would still be in need.
"The money is badly needed but it won't solve all the issues," Mrs Hosking said.
"I am particularly aware of the facilities in small towns like Murchison and Pyramid Hill that have had to close because government funding isn't sufficient for small facilities."
Mr Morrison committed more than half a billion dollars to increase home care packages, reduce the use of chemical restraints and help get younger people out of residential aged care.
Mrs Hosking said it was pleasing to see home care package allocated but said it will take time to implement.
"It will take time to see that happening at the grass roots level," she said. "Providers of home care packages will have to train and have staff available to carry out what that funding is set for, you can't do that overnight.
"So I don't expect something very soon but I'm delighted the government has seen fit to respond to Royal Commissioner's interim report in the way it has. Some will benefit which is better than none."
The funding will see $496.3 million invested in 10,000 additional home care packages; $25.5 million spent on improving medication management programs; $10 million put toward additional dementia training and support for aged care works and providers and $4.7 million to help meet new targets to remove younger people with disabilities from residential aged care.
"I think there are few families around the country, my own included, who are not unfamiliar with the difficult decisions that are made about relatives and loved ones who are placed into aged care facilities," he said.
"We can and must do better in providing improved support for our older Australians."
Mrs Hosking said the issue of younger people in residential aged care had been identified decades ago.
"I've been retired from the nursing world for 24 years, so for at least 30 years I have been aware of the need of residential accommodation for younger people," she said.
"That is not a new issue. It's an issue that, as a retired rehabilitation nurse, was identified 30 years ago."
New targets that are part of the Younger People in Residential Aged Care Action Plan will include - apart from exceptional circumstances - no people under the age of 65 entering residential aged care by 2022; no one under the age of 45 living in residential aged care by 2022; and no people under 65 living in residential aged cade by 2025.
Home care packages will be rolled out from December with a focus on those with higher levels of need.