Seniors' peak body, Council on the Ageing Australia has called on the government to fund an additional 60,000 home care packages in the October budget to ensure no one has to wait longer than 30 days for access.
COTA's Safer at Home campaign says that official figures show at least 19,000 older Australians waiting for home care were forced into a nursing home last year because they couldn't get the care they need at home.
"At least 20 per cent of older Australians already in residential aged care during this pandemic don't need to be there. That's 50,000 people that can't remain safer at home because the system has let them down, and let their families down," said COTA Australia Chief Executive, Ian Yates.
Government figures indicate over 100,000 people are waiting at home for the correct level of care, including 59,071 who have no package.
Mr Yates says of the 100,000 people waiting at home to get the care they need, around 19,000 each year are forced into residential care and over 10,000 die waiting for care at home.
Mr Yates said the Aged Care Royal Commission's COVID-19 report, exposed critical failures by some residential aged care providers to provide care and quality of life for older Australians during the pandemic.
The Royal Commission's Interim Report in October 2019 also revealed the chronic shortage of packages that would support people to stay at home as they age and recommended that the Government take immediate action.
Mr Yates acknowledged the Government has increased home care packages by more than 50,000 since the 2018 Budget, and the number of people receiving home care had increased by 38% since March 2019 but that is not enough to clear the current 100,000+ wait-list and 18 month waiting time for the right level of care at home.
He said COTA had been inundated with calls from older Australians and their families concerned about loved ones in residential aged care and frustrated at not being able to get support and care at home.
"We know most older people feel safer at home as they age. They're happier in their own home. They want to stay at home. It's their right to make that choice. However, we receive far too many calls from older people or families at their wits end because they have waited 18 months or more for the care they need at home.
"Many older Australians end up hospitalised with illness or injury that could have been avoided if they had more help. Many are are also isolated and alone in their homes without support - which is the key cause of poor mental health and deterioration in older people, often resulting in premature admission into residential aged care.
"It is a situation that we would not accept at any other stage of life and should not be acceptable as we age either.
"Once someone is assessed for home care they shouldn't have to wait more than 30 days for support they need. Any assessment should also be done within 14 days of being requested. Older Australians can't wait any longer."