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© 2025 The Weekly SOURCE

Government spending on aged care external contractors grows by another $68 million

2 min read

The Government has published details of millions of dollars worth of aged care-related contracts on its Austender website in recent months. Here are some of the highlights.

The Department of Health, Disability and Ageing (DOHDA) extended its contract with management consultants Accenture Australia for the digital implementation of the new Aged Care Act, bringing the total value of the contract, which commenced in July 2024 and will now extend to June 2026, to more than $27 million. 

(In 2022, Accenture Australia was awarded contracts worth $194 million related to development of the Government Provider Management System (GPMS), a central component of the Government's reforms coming in on 1 November 2025.)

The Aged Care Quality and Safety Commission extended two contracts with Canberra-based IT consultancy xAmplify Services Pty Ltd for "provision of digital transformation services" and "cyber uplift", bringing the total contracts to $24 million.

A spokesperson for the ACQSC told The Weekly SOURCE, "A recommendation of the Independent Capability Review of the Aged Care Quality and Safety Commission was to establish appropriately resourced ICT governance and delivery processes, to provide greater strategy, design and implementation oversight over the Commission's aged care reform and internal digital work programs, along with cyber security uplift activities.

In June, the Independent Health and Aged Care Pricing Authority extended its contract with Healthconsult to conduct the Residential Aged Care Cost Collection 2024, taking the total value of the contract to $14 million.

A spokesperson for IHACPA told The Weekly SOURCE, "Our costing studies use labour data from the Quarterly Financial Report (QFR), which contains labour costs, and the Aged Care Financial Report (ACFR), which contains additional non-labour costs. As data is collected it is costed against these data sets.

"In early 2025, IHACPA was provided with updated ACFR data for the 23-24 financial year. The variation was completed to allow re-costing of existing data collected with the latest non-labour costs submitted through the ACFR."

In May, IHACPA extended its contract with Scyne Advisory, the consultancy spun out of PwC in 2023, for the 2025 Support at Home Cost Collection, taking the total value of the contract to nearly $3 million.

Scyne was initially awarded a $1.6 million contract to conduct the 2025 Support at Home Cost Collection to understand the cost of items on the service category list for providers transitioning to Support at Home. Those prices would form the basis of IHACPA's pricing advice to the Government.

The IHACPA spokesperson said, "The initial contract listed data to be collected for 50 outlets. The variation was completed to expand from 50 outlets to 100."


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