The final report was released publicly on Monday after the inquiry heard harrowing tales of neglect across two years of hearings around the country.
Key themes include creating a "rights foundation" for high-quality aged care and the need for the sector to have independence from the government and secure funding.
The report submits 148 recommendations to the federal government, including a new aged care act to ensure older people receive high quality support and care.
"For too long, legislation has focused on the funding requirements of aged care providers rather than the genuine care needs of older people," the report reads.
It also proposes a new and more vigorous regulatory system, with the current oversight processes described as "weak".
"Providers will need to demonstrate their suitability and capacity to deliver high quality care before they are allowed to deliver care and the regulator will be more assiduous in assessing the performance of providers," it reads.
Scott Morrison has announced an initial $452 million to bolster the sector, with the first slew of money to provide extra support for residential care providers.
"The royal commission has ... set out a very important roadmap which I think will establish generational change in this country when it comes to aged care," he told reporters in Sydney.
Immediate Response To Aged Care Royal Commission
The Morrison government has announced a five-point plan as an immediate response to address the findings of the aged care royal commission.
* Greater oversight of home care packages ($18.4 million). Program of audits of home care providers to reduce unjustified administrative charges, and better fraud controls;
* Strengthening provider quality ($32 million). Expanded powers for the Aged Care Quality and Safety Commission including a "senior restraint practitioner" to boost regulation of physical and chemical restraints;
* Residential care temporary financial support ($279.9 million). Continuation of the 30 per cent rise in homeless and viability supplements until the end of June, and targeted support for residential aged care providers in financial stress;
* Workforce boost ($91.8 million). Attracting 18,000 job seekers to enter the home and residential aged care workforce;
* Governance ($30.1 million). Training for aged home board members, stronger quality standards, and an overhaul of the Aged Care Act which has been in place since 1997;
* The government has promised a full response by the end of May.