Prime Minister Anthony Albanese unveiled his new Cabinet this week – and aged care has been relegated to the outer Ministry. Is this a signal that the Labor Government believes aged care is no longer a problem?
As we reported on Monday, the portfolio has been passed from Minister Anika Wells, who led the Aged Care Taskforce, to rising political figure Sam Rae. While peak bodies have broadly welcomed the news, the move highlights a deeper concern: aged care is increasingly seen as a political stepping stone, rather than a long-term commitment or leadership priority.
Complicating matters further is the decision to add Disability and the NDIS to Health Minister Mark Butler’s already expansive portfolio – prompting a rebrand of the Department of Health and Aged Care to the Department of Health, Disability and Ageing.
With this change, health spending will overtake defence to become the nation’s second-largest budgetary expense, behind only interest on government debt.
The implications are clear. This Cabinet reshuffle suggests the Government considers its mission to ‘fix’ aged care complete – and its focus has shifted to reigning in the escalating costs of the NDIS.
But has aged care really been fixed?
The answer is a resounding no.
As Ageing Australia noted in its response to the Cabinet changes, the sector remains unprepared for the 1 July reforms and urgently needs a Plan B.
Meanwhile, 81,000 older Australians are still waiting – and dying – for home care. That number is expected to swell by thousands each year from 2026 onward – see below.
Aged care and hospital beds remain in critically short supply. Workforce shortages are still biting. Financial viability for many operators is hanging by a thread.
We are not at the finish line – we’re not even close.
Despite progress made under Minister Wells, aged care is not ‘fixed’. And without further reform, rising demand and demographic shifts will push the system to its limits.
Is there a solution?
While our political wishlist series has concluded with the election, its core message remains unchanged: Australia urgently needs a national strategy for ageing.
Having sat through every hearing and community forum of the Aged Care Royal Commission, I’ve seen firsthand the depth and complexity of the issues confronting this sector.
Four years on, it’s clear: the Royal Commission didn’t – and couldn’t – provide all the answers.
We must move beyond the reforms of the past and focus on what will genuinely deliver for the tens of thousands of older Australians who will depend on aged care in the coming years.
Minister Rae faces a daunting challenge. The time for reactive policymaking is over. Providers, advocates, and policymakers alike must come to the table with clear, constructive solutions.
Because one thing is certain: aged care is far from fixed.
