Most people use aged care eventually.

Age care use is increasing as Australia gets older – but older Australians are healthier, more active and more independent, so they are more likely to age at home and less likely to use residential care.

The overall cost of aged care is increasing as labour shortages and rising expectations (including higher staffing levels) increase the cost of residential care, and more home care recipients get access to integrated care packages. Independent pricing through IHACPA means that government funding is covering care costs. However, recommendations from the recent Aged Care Taskforce for increased private contributions will be key to maintaining overall sector viability.

Access to care is increasingly a problem. New package releases for home care have slowed and so wait lists are blowing out. This can be addressed by releasing more packages. There are also impending residential care bed shortages driven by poor sector finances, high construction costs, and labour shortages.
Wages in the sector have increased significantly in response to the Work Value Case and are set to increase further as that case is finalised. Personal care worker shortages are easing as new staff can be drawn from the broader workforce. However, registered nurse shortages are likely to persist without policy changes to boost supply. The second phase of residential care staffing targets, demographic pressure, and competition from the broader care economy mean that recruitment and retention will continue to be a key issue for aged care.
About 3 in 4 aged care clients and family members rate residential care and home care at least an 8 out 10 according to an independent survey of almost 12,000 people.
Quality metrics for residential care are improving though they are still immature. There are limited quality metrics for home care, and much greater gaps in quality and regulatory surveillance, though this is mitigated by a generally less vulnerable client cohort.

There is still substantial room for quality improvement, but this is likely to be best achieved through targeted programs combining formalisation of best practice, education and funding, with regulatory intervention as a last resort. The on-ground effects of general reforms such as the New Aged Care Act and New Standards are unclear. Given recent funding growth and broader budget pressure it will be important for the sector to achieve quality improvement within the existing funding envelope where possible.