A new national survey of over 290 home care leaders has revealed deep concern across the aged care sector about the financial and operational challenges of implementing sweeping aged care reforms set to begin in November.
The Home Care Provider Outlook Report 2025, released by Enkindle Consulting, highlights widespread uncertainty as providers prepare for the new Aged Care Act and Support at Home (SaH) program. While many support the reforms’ intent to create a more sustainable, client-centred care system, the report found that a lack of clear guidance, pricing information, and financial support is threatening successful implementation.
“Financial viability has overtaken workforce shortages as the sector’s top challenge for the first time.”
Home Care Provider Outlook Report 2025
Providers are warning that without urgent details on funding and pricing, many services could become unsustainable. “Financial viability, funding gaps, and reform timelines are all interlinked,” the report noted. “Without one, the others can’t be achieved.”
Despite these challenges, 47% of providers have appointed project leads and started planning for the reforms. However, one in five organisations say they lack the resources to begin, while others are holding off until the government provides more details.
“Reform is consuming all our time and resources…there’s little capacity left for innovation or growth.”
Survey respondent
The report found that restorative and reablement services, dementia care, and end-of-life support are seen as key areas for future growth. Yet, concerns remain that these opportunities may not be realised without sustainable funding. Government-funded aged care remains the sector’s primary income source, but many fear that proposed price caps and regulatory burdens could constrain future viability.
Technology was also flagged as an area of both opportunity and concern. Telehealth and virtual care were identified as the most promising innovations, but over half of providers say their current digital systems are inadequate. Cost, lack of skilled personnel, and insufficient infrastructure are slowing tech adoption, particularly in rural and smaller organisations. A $10,000 grant was offered by the government to providers to help with IT preparedness, which was largely seen as inadequate by the sector.
Inside Ageing spoke with the report’s author, Jennene Buckley, who shared some insight into the challenges being faced:
“Many small home care providers, especially those serving regional and niche communities, lack the financial resources and expertise to implement new technologies like the Integrated Care system. While the government previously offered the Business Improvement Fund to help residential aged care providers modernise, similar support is needed in home care to boost digital capability. Additionally, some providers who have adopted new technology are now facing “buyer’s regret” due to poor implementation or choosing systems that were not fit for purpose, often because they lacked expert guidance during the selection and rollout process,” Ms Buckley shared.
Recruitment also remains a persistent challenge, with most providers relying on mainstream job platforms and social media to fill roles. There is limited uptake of international recruitment pathways or gig-economy platforms, particularly among home care providers.
With demand for in-home aged care projected to double by 2042, the report concludes that reform efforts must be better aligned with real-world operational capacity. Without targeted investment, coordinated planning, and stronger policy support, providers fear that the system may not be able to deliver on its promise to support older Australians to live and die well at home.
