2025 in review: Aged care’s transformative year
The last 12 months has marked a period of profound change and ongoing scrutiny for Australia’s aged care sector. From the implementation of the new aged care act, cabinet reshuffles, and significant pay rises, to provider closures and persistent concerns over service delivery, the sector navigated a complex and ever-shifting landscape.
March
Indigenous aged care
The year began with significant announcements aimed at strengthening the sector, with the Department of Health and Aged Care releasing the Aboriginal and Torres Strait Islander Aged Care Framework, a 10-year plan designed to improve aged care for First Nations communities.
“Now is the time to make aged care work for Aboriginal and Torres Strait Islander people and communities,” the then Aged Care Minister Anika Wells said.
The framework, guided by principles of genuine partnership and prioritising Aboriginal Community-Controlled Organisations, aims for culturally safe and responsive access, assessment, and care, alongside a larger First Nations workforce. Targets include increasing Indigenous representation in services and achieving 100 per cent completion rates in cultural safety training for aged care workers.
Aged care pay rises
The Albanese government also confirmed an additional $2.6 billion investment to fund pay rises for over 60,000 aged care nurses.
This brought the total government investment for award wage increases to $17.7 billion, facilitating the Fair Work Commission's Aged Care Work Value Case decision. Wages for registered and enrolled nurses were set to increase by an average of 12 per cent across three instalments, beginning March 1, 2025.
April
Class action against provider
April brought legal challenges to the forefront, with Echo Law announcing a class action against Bupa Aged Care facilities. The lawsuit alleged Bupa failed to provide adequate staffing levels to meet minimum acceptable standards from July 1, 2019.
“Bupa’s own reporting confirms wide-spread understaffing and failures to meet the minimum acceptable level of care required under Australian law at each of its aged care facilities. These are systemic failures at the corporate level and at the expense of residents,” Echo Law senior associate Dr Lauren Meath said.
Bupa responded, stating they were reviewing the claim and had invested in their people and model of care since 2019.
May
Federal election
The Albanese Labor government secured a historic second term in the federal election on May 5.
Prime Minister Anthony Albanese’s campaign included a strong focus on health, with promises including an $8.5 billion boost to bulk-billing, a $200 million expansion of telehealth services, and a $60 million boost for Northern Territory health and aged care, including a new aged care home in Darwin.
A key pledge directly impacting the sector was the commitment to fund the $2.6 billion pay rise for 60,000 aged care workers.
New minister
In the weeks following, a ministerial reshuffle saw the aged care portfolio moved from cabinet to outer ministry. Anika Wells left the portfolio, with Sam Rae taking over as the new Minister for Aged Care and Seniors.
While Mr Rae expressed honour in his new role, the sector's reaction was cautious.
“We’re running out of runway for the July 1 [Aged Care Act] deadline, yet aged care providers still don’t have all the necessary information to prepare for these significant reforms,” Ageing Australia chief Tom Symondson said, calling for a staged implementation.
“Failure is not an option. If we don’t get this right we risk widespread confusion for older Australians and a loss of confidence in the sector as a whole.”
June
Fraudulent qualifications
The Australian Skills Quality Authority (ASQA) deregistered SPES Education Pty Ltd, revoking over 4,200 qualifications, including the Certificate III in Individual Support and the Certificate IV in Ageing Support.
ASQA cited fraudulent qualifications and a lack of robust assessment systems, qualified staff, and training resources. This action, part of a broader crackdown, brought the total count of revoked qualifications since 2024 to over 23,000.
Provider closure
Adding to sector instability, long-term care provider Annecto Incorporated announced its closure on June 12, effective July 1. The decision, attributed to “financial challenges,” left over 3,000 clients and 1,000 staff impacted across multiple states.
The closure represented the financial pressures facing providers, particularly after an audit in September 2024 found Annecto non-compliant with four home care standards.
Aged care act rollout delayed
Crucially, also in June, the government announced a four-month deferral for the commencement of the new Aged Care Act, pushing the deadline to November 1, 2025.
“We want to make sure that all operational, digital and legislative pieces are in place before the rollout starts,” Minister for Health and Ageing Mark Butler said.
“This is about ensuring the new Aged Care Act and Support at Home is ready for older Australians and their families,” newly appointed Minister Sam Rae added.
Treasurer Jim Chalmers confirmed the delay would result in a $900 million loss of revenue over four years due to the delayed implementation of co-payment requirements for wealthier older Australians.
While welcomed by many providers, it was criticised by the Coalition as an “embarrassing backflip” that could have been avoided.
September
Waiting lists scrutiny
September brought intense focus on the persistent issue of aged care waiting lists. A Senate Inquiry revealed that over 200,000 older Australians were waiting for care, a figure significantly higher than previously reported. This included 121,596 awaiting assessment and 87,000 waiting for the correct level of care.
“We are alarmed to discover that the number of older Australians waiting for crucial aged care in their own homes is far higher than previously thought,” Tom Symondson said.
The Inquiry also heard that nearly 5,000 older Australians died in the last financial year while waiting for appropriate home care.
Inquiry chair and Greens Senator Penny Allman-Payne criticised the government.
“Under this system you have to wait for someone else to die or move into residential aged care before you can get support at home. It’s unconscionable,” she said.
Inspector General’s report
Amidst this, the Inspector-General of Aged Care Natalie Siegel-Brown released a statutory report, warning that reforms had largely addressed “isolated issues rather than driving the systemic change required.”
She cautioned that some implemented reforms, such as co-payments under the Support at Home program, could inadvertently deter vulnerable individuals from accessing essential services. The report also criticised the 'mainstreaming' of Aboriginal Community Controlled sector services, arguing it risked undermining culturally responsive care.
20,000 HCPs fast-tacked
In response to pressure, Minister Rae announced that the government would fast-track the release of 20,000 home care packages by the end of October.
He framed this as “bringing forward” of already planned support, explaining that legislative instruments prevented an earlier commencement of the full Support at Home program.
Minister Butler confirmed the full schedule for the 83,000 packages: 20,000 by October, a further 20,000 between November 1 and December 31, and the remaining 43,000 in the first six months of 2026.
Rules released
Towards the end of the month, the Albanese government released the final version of the new Aged Care Rules, providing essential detail for the new Act.
“We’ve worked hard to make sure the Rules will help improve the care our loved ones receive and facilitate the world-class care every older Australian deserves,” Minister Rae said.
Alongside the Rules, enhancements to the aged care Star Ratings system were announced, requiring homes to meet legislated care minutes for higher ratings from October 1, 2025.
October
Senate report
October saw the Senate Community Affairs References Committee report on aged care service delivery released, which echoed the Inspector-General’s concerns.
The Committee warned that the new Aged Care Act “may not only fail to implement the recommendations of the Royal Commission … but may serve to entrench the failings of the previous systems.”
It highlighted the “devastating, irreversible and sometimes fatal impact” of waitlist delays and called for the release of all 83,000 promised Home Care Packages by June 30, 2026.
Concerns were also raised about insufficient support for care management and a critical lack of digital readiness within government ICT systems.
New Complaints Commissioner
The sector also welcomed the appointment of Treasure Jennings as the new Aged Care Complaints Commissioner.
Commencing November 1, Ms Jennings, who has more than 20 years experience in complaints oversight, will oversee processes for addressing complaints and promoting restorative solutions.
“This appointment brings us one step closer to the rights-based, person-centred aged care system that’s a safer and fairer aged care system for everyone,” Minister Rae said.
The Older Persons Advocacy Network (OPAN) welcomed the independent role.
“Older people consistently inform us of the need for improved complaints mechanisms, and this is an important step in ensuring high quality aged care,” OPAN chief Craig Gear said.
November
New act, finally
November 1 marked the commencement of the Aged Care Act 2024 and the new Support at Home program, ushering in the most significant reform in 30 years.
“With these reforms, we are no longer just patching a broken system - we are fulfilling a promise to deliver dignity, choice and respect to every person who has spent their life contributing to their community and our country,” Minister Rae said.
The Act enshrines older people’s rights and fully funds clinical care, but introduces means-tested co-contributions for non-clinical care and everyday living services, capped at $105.30 a day or $135,318 over a lifetime.
COTA Australia chief Patricia Sparrow called it a “defining moment,” but expressed concern that “showering has been excluded from clinical care under the new Support at Home program.”
Inquiries into reforms
Just days later, the Senate voted to establish two further inquiries into Labor’s aged care reforms.
These inquiries will scrutinise the planned transition away from the Commonwealth Home Support Program (CHSP) and investigate the impacts of new pricing mechanisms and co-payments, with fears that older Australians may face increased costs and forgo essential services.
Greens Senator Penny Allman-Payne, chairing both inquiries, said the system is “broken.”
“Older people across the country - hundreds of thousands of whom are on fixed incomes - are copping increased costs for their care at home so that privatised aged care providers can make bigger profits. That’s a broken system,” she said.
*This article was published by Aged Care Insite. For further details please visit https://www.agedcareinsite.com.au/2025/12/2025-highlights-reshaping-the-sector/.