The government’s $5.6 billion reforms to the aged care sector are due to be implemented in just 100 days. The changes have been billed as the start of a new era for the industry, which has been plagued by challenges in recent years.

However, aged care providers say they aren’t ready for the changes. As a result, they are asking the federal government to delay the aged care reforms by at least six months.

So what are some of the concerns?

Experts call for more lead-in time to implement aged care policy

Many of the changes, including a transition from Home Care Packages to the Support At Home program, will require intensive staff training and upgrades to IT systems. Providers say there is simply not enough time to complete the work that is required by the July 1 deadline. Many information technology staff employed by aged care providers are still waiting on information from the government to build the necessary systems.

Retire Australia chief executive Simon Fawcett says there could be catastrophic consequences if the changes are implemented too quickly.

“Where the catastrophe … is going to happen because of the speed is the fact that operators probably won’t have the systems and processes and finances ready to make the change,” he told The Australian.

“You’ve got 200,000 elderly people on Home Care Packages today and there’s 80,000 people on the waiting list … If everything isn’t really, really well organised and the elderly people know what they’re paying for, then come July 1 the risk is that funds don’t flow through the system to pay for services, elderly people will not get the care they need, staff won’t get paid (and) operators won’t be able to stay solvent.”

Advocates have also warned that if the changes are implemented too quickly, uncertainty may mean some aged care residents have to pay more for their care.

Providers say they aren’t asking for more money from the government. Rather, they are asking for more time to smoothly transition to the new reforms. However, for many providers the speed of the reforms is not the only issue.

Changes to liquidity standards also a concern

As part of the reforms, new liquidity standards will come into effect on July 1. Under the changes, providers must hold at least 35% of their cash expenses from the previous quarter in liquid assets. They must also hold 10 per cent of refundable deposit liabilities. However, advocates caution against a one-size-fits-all approach. They warn that liquidity standards must be proportionate to risk. Otherwise, there is a risk that fewer aged care developments will be built. This is because the new standards may make some projects unviable or tie up so much capital that they can’t proceed.

This comes at a time when current aged care providers are struggling to meet increased demand caused by our rapidly aging population.

What is the government’s response?

The government says it has established a Transition Taskforce to help address issues relating to the transition to the new Aged Care Act. It says it is also offering $10,000 ICT grants to help providers manage the transition to the new system.

Most people agree that reform of the aged care sector is required. However, it must be implemented in a way that does not impact the quality or delivery of services.

Are you looking to make a difference? Despite the challenges the industry currently faces, aged care offers a rewarding career.

If you are looking for a career in aged care, Aged Care Resumes can help. We are pleased to offer various services, including our aged care resume and cover letter writing service.

Article References

Ison, S (23 March 2025) ‘Alarm bells ringing over aged-care reforms’, The Australian, accessed 24 March 2025.

Lloyd-Jones, K (18 March 2025) ‘Liquidity standards face resistance’, Australian Ageing Agenda, accessed 24 March 2025.