A new report from the Aged and Community Care Providers Association (ACCPA) reveals that 70% of aged care providers are concerned about Australia’s preparedness for its rapidly ageing population. The findings come from ACCPA’s inaugural ‘State of the Sector’ survey, which sheds light on the challenges faced by the sector, including funding shortfalls, workforce shortages, and reform pressures.
ACCPA CEO Tom Symondson described the report as an honest and evidence-based snapshot of the aged care sector at a critical point in its transformation.
“This is a report about our sector at a critical juncture in its transformation journey, based on feedback from those that deliver care to older Australians every day. It provides evidence-based insights about what’s happening on the ground. It is honest, and it is earnest,” said ACCPA CEO Tom Symondson.
Despite providers’ commitment to delivering quality care, rising costs remain a major issue. The survey found that 97% of providers are concerned about increasing operational expenses. Half of all residential care providers are operating at a loss, and home care provider margins have plummeted to just $1.80 per client per day in the first half of 2023-24, down from $3.20 in the previous year.
Government funding remains a significant concern for 92% of providers, particularly in regional and rural areas where services are already stretched thin. The report also highlighted that 20% of smaller providers were unsure if they could continue offering services over the next 12 months.
“Australia’s population is ageing, and we need to be ready,” said Symondson, stressing the urgent need for sustainable funding and investment to meet future demand.
While 51% of respondents believe that recent reforms are steering the sector in the right direction, many feel the pace of change is overwhelming. Nearly two-thirds (64%) of providers said the transition timelines were too short, and 84% worried that new regulatory demands would place further strain on already-stressed operations.
“Providers support well-designed reforms, but they must be introduced at a manageable pace”
Tom Symondson, CEO, ACCPA
Workforce shortages further complicate matters, with only 36% of providers confident in their ability to recruit enough staff to meet mandated care minute requirements. Symondson highlighted that current migration policies are not providing adequate relief, as 64% of providers reported difficulties accessing the necessary workforce under existing settings.
The report highlights the need for immediate government action to ensure that Australia’s aged care sector remains sustainable and capable of delivering high-quality care to its ageing population.
