The latest Aged Care Quality and Safety Commission (ACQSC) Sector Performance Report shows that residential aged care use is growing faster than home care, despite Government policy being firmly focused on supporting older Australians to remain at home.
The June quarter report, which includes a three-year special review, confirms that site audits for residential aged care finished up in April 2025 and for home care in May ahead of the introduction of the new Aged Care Act on 1 November 2025. As a result, no reaccreditation audit compliance results were recorded for the June quarter.
As of July 2025, more than one in four Australians aged 65 and over are now using aged care services.
Over the past three years, home care usage has grown more slowly than residential aged care, raising questions about whether the delayed release of Home Care Packages in 2024-25 has prematurely driven some older Australians into residential care.
Between 2022-23 and 2024-25, the number of people receiving home care increased by 8% to 1.1 million, while the number living in residential aged care rose by 9% to 203,371.
Fewer non-compliance notices issued
The ACQSC’s data also shows a sharp decline in non-compliance notices over the same period. The average number of notices issued to residential aged care providers fell from 54 in 2022-23 to just 12 in 2024-25, reflecting the shift towards more proactive risk management instead of punitive action.
In home care, the number of non-compliance notices fell from 23 to 10 over the same period.
The data from the Quality Indicator Program also highlighted important trends. Pressure injuries have dropped below 5% for the first time since the program began, but the use of physical restraint has increased, rising 2.1% over the past two quarters to 19.8% – the highest level in two years.
The ACQSC says it will continue to monitor the trend closely as reforms reshape the aged care landscape.
Read the full Sector Performance Report here.
