With national aged care reforms delayed until November, providers and policymakers have a valuable window to accelerate transformation - enhancing systems, empowering staff, and engaging consumers to shape a stronger future care landscape.
The Australian Government's decision to delay the rollout of its landmark aged care reforms from 1 July to 1 November 2025 has been met with a mix of relief and reflection. While the additional four months offer a much-needed reprieve for a sector grappling with complexity and change, they also raise a more pressing question: will this time be used to meaningfully prepare, or simply to pause?
The reforms, which were due to go live imminently, proposed material impacts on:
- The rights of care recipients and the obligations for care providers and staff;
- How in-home care services are structured and provided - the new Support at Home program unifying a previously diverse range of in-home service program; and
- Service funding mechanisms with changes to fees, recipient contributions and means testing for services.1
Central to the rationale for the delay was a lack of readiness
in the system for these changes - providers were not clear on the
new rules of the road, service users were not clear on how changes
would affect them including potential price increases, and
regulators and funders were not able to give clarity on the
transition to the new regime.
The deferred start date gives time to mitigate these risks to the
successful roll-out of the reforms, but not without costs -
extending the period of uncertainty for all involved in the system
and adding up to $900m in additional costs for the federal
budget2. More subtly, the delay risks reinforcing a
culture of reactive change, where reform is something to be endured
rather than embraced.
The delay has largely been well-received by stakeholders across
the sector - provider advocate Ageing Australia said they were
'relieved' regarding the decision as the extra time would
give 'critical space' to finalise necessary
arrangements.3 The Consumer advocate OPAN have said they
'reluctantly' support the delay to make sure older people
who rely on the system are able to make informed decisions about
their clinical care.4
And while the delay is necessary to avoid further disruption in
the system for all participants, and therefore undermining the
integrity of the reform agenda overall, the next four months must
be used strategically. This is not just about operational
readiness, it's about preparing for a more consumer-driven,
transparent, and accountable aged care system. That means not only
updating systems and processes, but also addressing workforce
pressures, improving communication with consumers, and
strengthening coordination across health and community
services.
This is an opportunity for the aged care sector to accelerate
transformation. Specifically, we see important work to be done
in:
- Developing and/or embedding updated operating models for the post reform-landscape, recognising that financially sustainable services will need to be organised and delivered differently with the new requirements;
- Stress-testing and scenario planning for the new ways of working - creating clarity on what could go wrong as a result of changes and planning to address those issues;
- Using the time to invest more in staff training and change management; and
- Creating and putting into action improvement plans to build financial resilience for the uncertain times ahead.
The delay is a gift of time. But like all gifts, its value depends on how it is used. Providers and policy makers now have an opportunity to pivot, rather than pause. The coming months offer a window of opportunity to take action and achieve transformation readiness, before the real reform begins.
Footnotes:
1 The changes to staffing requirements and other quality regulations have already been implemented and are not impacted.
2 Source: Treasurer puts cost of delaying new Aged Care Act at $900M
3 Source: Until November &- new Aged Care Act delay campaign claims win
4Source: Aged Care Act delayed - Government News/small>
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