What's Happening?
Australia's aged care sector is undergoing significant transformation following the 2021 Royal Commission into Aged Care Quality and Safety. The Aged Care Act 2024, effective from November 2025, introduces
a rights-based framework emphasizing accountability, transparency, and quality of care. The government has allocated $2.2 billion in the 2024-25 Budget to enhance aged care services, focusing on faster access to in-home care, workforce support, and technological advancements. This includes funding for Home Care Packages, quality and safety oversight, and critical aged care technology. The reforms aim to address rising demand and workforce shortages, with a growing elderly population choosing home-based care.
Why It's Important?
The reforms represent a pivotal shift in Australia's aged care sector, emphasizing the need for innovation and technology integration. As the population ages, the demand for aged care services is increasing, putting pressure on traditional care models. The government's investment in technology aims to improve service delivery, enhance safety monitoring, and facilitate better communication between providers, families, and regulators. By leveraging data and technology, aged care providers can improve care quality, reduce hospital admissions, and ensure compliance with new regulatory standards. This transformation is crucial for meeting the needs of an aging population and ensuring sustainable, high-quality care.
What's Next?
Aged care providers will need to adapt to the new regulatory environment by embracing digital transformation and innovation. The focus will be on implementing technology solutions that enhance care delivery and compliance. Providers will need to invest in remote monitoring, virtual care platforms, and data-driven decision-making to meet the demands of the new Aged Care Act. The government will continue to monitor the sector's progress, ensuring that providers meet the required standards and deliver person-centered care. The success of these reforms will depend on the collaboration between government, providers, and technology partners to create a sustainable and effective aged care system.
