As the aged care sector prepares for the shift to the new Aged Care Act, funding and financial management are emerging as critical pressure points for providers. With tight margins and increased administrative burden, the drive to automate financial processes has become more than a convenience – it’s now a strategic imperative.

As the aged care sector faces a major shift in how services are funded and delivered, one thing is clear: the next 12 months will be turbulent. With new legislation looming, pricing standardisation on the horizon, and tighter financial accountability coming into play, aged care providers must urgently address long-standing gaps in procurement and operations.

As Australia’s aged care sector braces for the rollout of the new Support at Home program on 1 July, providers are grappling with fundamental changes to service delivery and funding, which directly impact cash flow.

With the legislation for the new Act yet to be finalised – just 34 business days out from 1 July – few providers would claim to be ready for the changes under the new Aged Care Act.

Recent regulations, such as the proposed changes in the liquidity requirements for aged care providers, have increased concerns about cash flow management.

Many providers, especially smaller ones, are finding themselves under pressure as funding delays and complex payment systems create financial strain.

According to Ben Woolley (pictured top), Managing Director at invoice processing software platform Redmap, many providers are still flying blind.

“We’ve got providers processing over 100,000 invoices a month with no procurement control,” Ben told SATURDAY.

“No national pricing agreements. No consistency. That’s not going to fly under the new system.”

The cost of inaction

Ben says many operators have been functioning in an informal, inefficient procurement environment – often paying up to 50% more for identical services across different locations.

Historically, this didn’t raise alarms. But with pricing caps coming in for home care in July 2026, those inefficiencies will start hitting the bottom line hard.

“When the Government says you can only charge $120 for lawn mowing,” Woolley warns, “you better make sure your contract with Jim’s Mowing reflects that.”

Residential aged care operators will not be immune from cash flow issues either, with new payments in arrears also commencing mid-next year

Still, there’s some good news.

When Redmap applied a 30% pricing increase – as suggested by aged care accountants StewartBrown – to their clients’ services, most still fit within the proposed pricing.

“That tells me two things,” Ben says. “One, the StewartBrown modelling holds. And two, operators who are already investing in automation and efficiency will be better placed to absorb the coming changes.”

Rising costs and the need for efficiency

The focus for operators must therefore be not just on readiness for the reforms, but on transforming your financial and operational models to support future growth.

One of the main challenges facing aged care organisations under the new Act is the escalating cost of systems and compliance.

Many operators already find themselves paying for software they don’t even use, or, even worse, using solutions that aren’t fit for purpose.

This inefficiency can lead to significant wasted resources, particularly when key staff members leave or organisational changes occur, and there is no clear understanding of the tools being used.

The solution? Automating your finance processes.

“By streamlining operations and reducing reliance on disparate systems, aged care providers can more efficiently manage cash flow and funding,” said Darren Gossling, Managing Director of business and digital transformation consultancy Rohling.

“Automation isn’t just about reducing administrative costs; it’s also about giving decision-makers the tools they need to make better, data-driven choices.”

Rohling delivers digital maturity assessments, providing a roadmap for organisations to implement technology solutions that reduce the complexity of their financial processes.

“Reducing unnecessary touches on invoices”

Technology vendors are also seeking to help operators streamline their financial workflows.

Aged care clinical and financial management software company AlayaCare has integrated its platform with Redmap to help streamline aged care financial workflows.

“The integration with platforms like Redmap has enabled providers to simplify the finance side of things by reducing unnecessary touches on invoices,” its GM Australia & New Zealand, Annette Hili told SATURDAY.

“Previously, too many approvals and manual processes would slow things down. Now, the system automatically processes approvals, reducing bureaucracy and speeding up payment cycles.”

This integration also assists with the requirement for residential aged care providers to submit clear, up-to-date care records.

“Previously, providers would manually compile records to meet these standards. Now, the technology does it for them, automatically flagging risks and providing alerts for care teams,” Annette explains.

This automation allows providers to focus on providing care, rather than managing complex, time-consuming financial workflows.

The technology also improves transparency, making it easier for providers to track financial data, manage budgets, and ensure timely payments.

Choosing the right solution, however, is key.

Poor tech investment hindering efficiency

One of the biggest risks Ben sees is poor technology decision-making.

In one case, a large provider’s finance team purchased an AP tool based solely on its integration with their finance system – ignoring the need for it to interface with their care management platform.

“They bought half a tool,” he says. “And those decisions are costly. You need to involve the right stakeholders and understand your full requirements before choosing software.”

The message is clear: with a regulated, efficiency-focused funding model on the horizon, the onus is on providers to get their houses in order.

What should operators do now?

• Implement procurement controls now

Identify inconsistent pricing and take steps to unify supplier agreements.

• Invest in automation

Free up admin resources and ensure compliance with future funding models.

• Choose vendors who understand aged care

Generic tech solutions won’t cut it anymore.

• Start modelling for pricing standardisation

Assume a 30% uplift and test where your services sit within proposed pricing guidance.

“The new Act is about financial sustainability,” Ben concludes. “If you’re not automating and optimising now, you’re not just behind – you’re at risk.

Remember – automation can help organisations to build their scale and efficiency – but only if providers also take the time to reimagine their business models and invest in better financial planning.

“This is an industry of change,” Annette summed up. “There’s going to be some pain along the way – but it’s nothing we can’t get through.”