A warning a fix to our aged care system, shouldn't just be about extra funding

Associate Health Minister Casey Costello says the way services are funded is outdated, and do not recognise the connection between various parts of the system.

The Government's setting up a Ministerial Advisory Group to report back on what sort of aged care funding model is needed, to support sustainable services.

Aged Care Association Chief Executive Tracey Martin says more than two-billion-dollars is being put in, but an efficient system isn't coming out the other side.

She says they've had several reports which show both the aged care model, and the funding system are broken.