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Plan T: urgent ‘transformation’ needed to future-proof aged care for residents and operators

2 min read

With aged care home occupancy over 95%, 85,000-plus on home care wait lists, and thousands stuck in hospitals, Australia’s aged care system is already operating beyond capacity – and facing a demographic tidal wave.

From 2027, when Baby Boomers begin turning 82, unmet demand for Home Care Packages could hit 120,000 people. By 2029, when they reach the average age of entry into residential care (84), we’ll again be short 120,000 beds. By 2030, that shortfall may grow to 200,000.

This looming gap will most affect predominantly single ageing Australians, fearful, increasingly frail and sick at home, alone.

This cannot be acceptable to us as a society or us as the aged care sector.

A transformation – not just reform – is needed. Building enough infrastructure and hiring sufficient workforce within four to five years is unfeasible.

The only solution is to do more with less, plus reimagine the services and their delivery.

Former IRT CEO Patrick Reid says the current system hinders care. “Throwing money at the problem will not fix it,” he said, citing clinical staff spending 40% of their time on compliance paperwork.

Former COTA CEO and Acting Inspector-General of Aged Care Ian Yates (pictured top and below) echoed the need for system-wide change. “What we have not done… is we have not started to transform the system. And we need to transform the system because of the sheer demographics.”

Ian Yates at the 2025 LEADERS SUMMIT

He added, “There is not a vision, there is not a strategy. First you need a vision.”

Ian called for the industry to unite behind higher standards. “We should work out agreements amongst the providers and the experts and consumers on what is best practice...”

“If you actually want to argue for less regulation, you need an industry that is in itself better and has (earnt) confidence in the community.”

He urged a broader political strategy: “The industry needs to collectively now work together to take the initiative to government, to the opposition, to the crossbench... and develop a new narrative.”

Plan T – Transformation – is now essential. See the next story.

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