The government has been accused of ignoring the home care sector in the Budget, despite being warned of a financial crisis.
The Home and Community Health Association outlined the sector's financial situation in a report given to the Associate Health Minister before the Budget was delivered last month.
The association represents providers of support for elderly people who continue to live at home.
The report said the sector was in dire trouble as present funding was unsustainable.
Labour Party health spokeswoman Annette King said the warning was ignored.
"They received no money to cover their rise in the minimum wage, they have been overlooked in terms of care, and they're now saying there are providers who have been running multi-years of losses.
"They are in a very poor state."
Ms King said the cost of supporting an elderly person at home was a fraction of the cost of supporting them in an aged care facility.