An in-depth analysis highlighting the challenges facing the aged care sector in Australia – including funding, workforce, reform, and what the priorities are for a better future. The report emphasises the critical need for well-designed and funded reform, revealing that seven out of ten aged care providers are worried about Australia’s readiness for an ageing population.

The report considers the sector's response to the reforms in the Aged Care Bill 2024 and in particular the capacity of providers to meet the costs and timeframes of implementing the reforms. 69% of providers felt the transition timeframes for the commencement of new aged care reforms were too fast, including 38% feeling they were ‘way too fast'. Moreover, only 24% of small or very small providers agreed that they have the financial resources needed to meet the requirements of the new reforms compared to 40% of medium or large providers.

The report concludes that providers will require targeted support to meet the upcoming targets and wage increases for aged care workers and home support workers. To support providers navigate the reform landscape, solutions must address funding pressures, workforce pressures and the compliance burden. In addition, reforms should be adequately paced, spaced and communicated ahead of time.

Findings

• 15% of providers saw the aged care system as being on the right track. 
• 20% of smaller providers were not confident in their ability to continue to provide services in the next 12 months.
• 97% were concerned about increasing costs associated with the delivery of services to older people.
• 64% of providers have been unable to access the workers required under the current migration arrangements.
• 53% of providers agreed that new requirements resulting from the Government’s response to the Royal Commission will support quality of care and safety.