Words by Cam McPherson, CEO Medical & Aged Care Group
Australia’s new Aged Care Act marks one of the most significant reforms the sector has seen in decades. At its core, the new framework funds care delivery on a cost basis rather than outcomes, rewarding activity over measurable gains in independence, connection and quality of life.
The signal to providers is clear: deliver more minutes, more reports, more forms, rather than demonstrate tangible results for residents.
That narrowness shows up in the detail. Mandated care-minute targets and registered-nurse averages hardwire staffing models irrespective of resident mix, acuity or the role of technology. Daily life is similarly prescribed, right down to food and drinks service rules.
These are good minimums, but in practice they can become ceilings, limiting flexibility and unintentionally discouraging innovation.
Well-meaning prescriptions can drift into sameness. It standardises inputs and timetables, not outcomes. Care should not be defined by the number of minutes delivered but by the quality of life achieved.
If the government wants safer, happier and more sustainable care, it should pair safeguards with permission: permission to adapt, co-design routines with residents, and use technology and flexible rosters responsibly.
Oversight is essential, but so is trust. That means introducing outcome-based funding that rewards improvements such as fewer falls, better nutrition and richer daily routines.
It means allowing setting-agnostic delivery, where services can move fluidly between home, community and residential settings. And it means replacing duplicative reports with real-time dashboards that give visibility to both providers and regulators.
Right now, the framework expands mandatory reporting without a clear mechanism to reward better results per dollar. Providers should be judged on what they achieve, not just what they record.
Australia’s aged care workforce is full of capable, compassionate people who want to do better for residents. They need room to innovate, to personalise care, build connection, and reimagine the daily routines that give residents joy and dignity.
