Australia’s aged care sector continues to show signs of improvement ahead of the new Aged Care Act coming into effect on 1 November, according to the Aged Care Quality and Safety Commission’s Sector Performance Report for April–June 2025.
The quarterly report, which also includes a three-year review of sector performance, highlights steady gains in provider compliance, workforce capacity and financial governance — but ongoing challenges in home services quality and governance capability.
Quality Standards compliance improving
Residential aged care providers achieved an average 83% compliance rate with the Aged Care Quality Standards in 2024–25, consistent with the previous year. Compliance among home services providers remained lower at 59%, a gap the Commission said reflects persistent governance and management issues.
Commissioner Liz Hefren-Webb said provider performance had “improved significantly” since 2023, particularly in organisational governance, but noted that home care compliance rates “remain about 20 percentage points lower than residential care.”
Focus on the workforce and care minutes
The report found that the number of services with major gaps in meeting care minutes targets dropped by almost 82% since 2023–24, with 13 providers completing enforceable undertakings to lift staffing levels.
Similarly, more providers are meeting 24/7 registered nurse coverage, with 37% of those previously non-compliant now fully meeting requirements.
Worker conduct and enforcement
The Commission issued 34 banning orders and conducted 130 investigations into potential breaches of the Aged Care Code of Conduct — a 75% increase on the previous quarter — following more reports from external sources such as regulators and law enforcement.
Complaints stable but changing
Complaint rates across both residential and home care remained steady, with medication management and falls prevention topping issues in residential aged care. In-home services, the most common complaints were about communication, fees, and case management.
Financial compliance strong
Audits of 54 home care providers and 97 residential providers revealed a high level of compliance with financial and prudential standards, though some home care providers were found to have lapses in consent and expired agreements.
Serious incidents and safety
Serious incident notifications under the Serious Incident Response Scheme (SIRS) declined for the first time since 2022 — a positive sign, though the Commission cautioned that not all notifiable incidents may be reported.
Preparing for reform
With the new Aged Care Act delayed to November, the Commission said the extra time would be used to support providers in transitioning to the new registration system and strengthened Quality Standards.
“This report provides a benchmark on sector performance as we and the sector prepare for 1 November,” Hefren-Webb said. “Our focus remains on ensuring older people receive quality aged care and are protected from harm.”
The full Sector Performance Report Q4 2024–25 is available here.
