The Aged Care Association says it is deeply disappointed politicians have decided the aged care sector does not require any more funding.
The health select committee has rejected the Nurses Organisation and the Service and Food Workers Union requests for more funding.
The groups had been arguing that funding changes over the past few decades have led to insufficient protection for the health, welfare and financial sustainability for older people and those that care for them.
In its report, the select committee says although it recognises tensions, it is satisfied with current arrangements.
The Aged Care Association is disappointed by the decision, saying the opinions of the public who wanted more funding have been ignored.