This is the third report in CEDA’s series on the workforce challenge facing Australia’s aged-care sector. It focuses on the rising number of beds sitting empty in aged-care homes as well as home closures, especially in regional areas, due to the ongoing worker shortage. This report outlines the causes and flow-on effects of the worker shortage, in particular low wages, a lack of affordable housing and the impact on the healthcare system.

To meet the aged-care challenge we must take steps to boost the workforce in the short term, while continuing to improve longer-term workforce outcomes.

Recommendations:

• Essential skills visa for personal-care workers Recruit personal-care workers directly by introducing a new “essential skills visa” to allow workers to migrate with long-term residency opportunities. This visa would only be for areas of critical need such as aged care, childcare, disability and healthcare.
• User-pays system with income or asset thresholds  Introduce a user-pays system for aged-care clients who meet certain income or asset thresholds, to help ensure the long-term viability of the sector. 
• Address nationwide housing shortages Additionally, we must address the nationwide housing shortage to allow essential workers to live near their workplace. We must prioritise key worker housing in regional areas under the national Housing Accord and look at options for rental assistance such as the National Rental Affordability Scheme.