Aged care’s annual report card lands – and the numbers tell a bigger story
At 30 June 2025, Australia had 236,894 operational residential and flexible aged care places – only 917 more than the year before.
The Government’s latest Operation of the Aged Care Act Report 2024-25 has landed – 140 pages, Minister Sam Rae’s first, and a reminder of just how big aged care has become: a $40 billion system serving more than a million older Australians each year.
But buried in the data is an underlying message: demand is accelerating far faster than the system is growing.
At 30 June 2025, Australia had 236,894 operational residential and flexible aged care places – only 917 more than the year before. Home Care Packages rose to 292,911, an increase of 17,425.
Meanwhile, the population aged 85-plus has hit 607,000 and is projected to reach one million by 2035. One in five Australians will be over 65 within a decade.
More older Australians coming through the “front door”
Consumer contact with the system also continues its steep climb. My Aged Care received more than 2.1 million calls last year and almost seven million website visits. Nearly 500,000 personalised welcome packs were mailed out – a sign of how many people are now stepping through the “front door”.
The pressure is also visible in the growth. CHSP supported 838,694 clients on $3.3 billion in funding. Home care providers grew by just 1.5% to 923 nationally. Residential occupancy sits at 89.9% according to the figures – though operators are reporting 95% and upwards on the ground.
And dementia support services are feeling the strain hardest: Dementia Behaviour Management Advisory Services (DBMAS) cases rose 19%, Severe Behaviour Response Teams (SBRT) cases climbed 22%, and more complex behavioural needs continue to dominate referrals.
Workforce pressure remains acute. Only 125 providers have signed up to the Aged Care Industry Labour Agreement, with just under 2,000 visas granted so far – a fraction of what will be required to meet increasing demand.
It all adds up to a sector that is growing in cost, complexity, and demand – but not yet growing fast enough in capacity.
Download the report here.
