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Govt awards $20M in new contracts as aged care assessment costs near $1.3B

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The Federal Government has now spent nearly $1.3 billion on contracts to deliver aged care assessments under the Single Assessment System, with a further $20.2 million awarded in contract extensions to 14 organisations to support the transition to the new Aged Care Act.

The latest round of contracts, reported on the AusTender website, commenced on 15 April 2025 and forms part of a broader $53.2 million commitment announced in the 2025-26 Budget to support the implementation of the new Act and associated digital systems.

A spokesperson for the Department of Health, Disability and Ageing told The Weekly SOURCE, "Additional funding is being made available to assessment organisations, including state and territory governments, through this measure to reflect the additional effort required for assessors to learn and implement new system processes, including working with new digital solutions."

While the $20.2 million has already been awarded to 14 organisations, the remaining funds will go to State and Territory Government Single Assessment System providers.

The Department confirmed that 12-month contract extensions have been executed with Victoria and Tasmania, as negotiations continue on long-term arrangements beyond 30 June 2025.


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