Prime Minister Scott Morrison says more money will flow to the aged care sector by Christmas following a damning royal commission report that described the system as "cruel and harmful".

The royal commission into aged care delivered its first report on Thursday, saying immediate action was needed to support more older Australians to stay in their homes, reduce the use of chemical restraints and get younger people with disabilities out of aged care.

PM Scott Morrison said the government would be "making a response" to the urgent issues raised by the royal commission "before the end of the year". Credit:Dominic Lorrimer

In an interview with 3AW on Friday, Mr Morrison said he had spoken to Treasurer Josh Frydenberg, Finance Minister Mathias Cormann and Aged Care Minister Richard Colbeck on Thursday night, hours after the report was released.

Mr Morrison said the government would be "making a response" to the urgent issues raised by the royal commission "before the end of the year".