Aged care advocates warn long-awaited reforms to pricing and standards will be put on ice until after the next election unless an urgent deal is struck.
The Albanese government and opposition have for several months been locked in negotiations over changes to the Aged Care Act.
The government is expected to agree to a lower lifetime contribution cap, which is the maximum a person can pay for aged care.
Labor wanted to increase the cap from $76,000 to $190,000 but the limit could be lowered.
Plans to impose criminal penalties on nursing home directors that fail to meet standards could also be ditched.
Tom Symondson, from the Aged and Community Care Providers Association, said the changes were "beyond urgent".
"If the new act isn’t introduced immediately after parliament resumes in a fortnight, the chances of it passing before the next election are near zero," he said.
"Whatever the hold up, this historic opportunity will be lost and older Australians will be left in limbo unless we act quickly."
The next election is due by May 2025.
Treasurer Jim Chalmers said any aged care reforms would be unveiled in due course but the status quo was not good enough.
"Business as usual won't cut it in aged care in the coming decades," he told reporters in Canberra on Thursday.
"Our goal here is to deliver better care for more people as they age, in a more sustainable way."
Corey Irlam, from Council on the Ageing, said aged care residents were anxious.
“We are hopeful a new Aged Care Act will mean better quality care rules, a single home support program that reduces wait times, a new independent umpire to resolve complaints, and clear rights that protect and empower older people with penalties if those rights are denied," he said.
"When the full legislation is available older people will be looking to the Senate inquiry process so they can comment and assess whether the package is fair."
Greens leader Adam Bandt expressed concerns about a user-pays model for aged care.
“The more and more that Labor and the Liberals do these deals, to say we are going to shift the costs down onto everyday people ... people will wonder what kind of society are we going to end up living in," he said.
