The Aged Care Industry Labour Agreement (ACILA) program – central to the Federal Government’s plan to ease aged care workforce shortages – has fallen well short, with only 249 overseas recruits arriving since May 2023, according to a new report from the Committee for Economic Development of Australia (CEDA).
As of 31 August 2025, just 137 ACILAs were in effect – 2.5 years after launch – and 2,462 primary visas had been granted. Most of those visas (2,213) went to applicants already in Australia; only 249 were issued offshore.
Despite existing agreements allowing up to 30,000 workers to be sponsored, staff on ACILAs account for under 1% of the 450,000-strong aged care workforce. Momentum has been inconsistent, with growth in agreements slowing sharply in the June quarter.
“With sweeping changes to aged care starting next month, we cannot provide the quality and quantity of care older Australians deserve without more action on workforce shortages,” said CEDA Chief Executive Melinda Cilento.
ACILAs taking 12 months to negotiate
CEDA’s 2021 analysis estimated Australia will need at least 400,000 additional care workers by 2050, a trajectory it says still holds.
In its new 24-page report, Duty of Care: How to Fix the Aged Care Worker Shortage, CEDA argues ACILAs are too slow and complex – often requiring lengthy negotiations, including with unions, that can stretch to 12 months, with inconsistent processes across states and high visa costs.
Providers are frequently using ACILAs to retain existing staff rather than expand headcount, while most temporary migrants working in the sector remain on student, partner or working holiday visas.
New aged care visa required
CEDA is calling for a new “essential skills” visa to let all aged care providers sponsor workers for residential and home care under a simpler, national framework, supported by an online matching platform to connect qualified overseas candidates with employers.
“Demand for care will continue to grow as Australia ages,” Melinda said. “The labour agreement approach isn’t fixing the shortage and is no substitute for an essential skills visa pathway.”
The Government began a review of ACILAs in August 2024. A Department of Home Affairs spokesperson told The Weekly SOURCE the review is examining both how agreements are established and the program’s performance, but said it is too early to assess broader policy outcomes.
You can read the CEDA report here.
