A Positive Path Forward: Leading Through Australia’s Aged Care and Disability System Shifts

Australia is navigating transformative changes in aged care and disability services. New legislation, safety concerns and workforce pressures are at the forefront of this evolution. The Aged Care Act 2024 will start on 1 November 2025 and place older Australians’ rights at the centre of service delivery, supported by the brand‑new Support at Home program. At the same time disability sector leaders are responding to reports of burnout among support workers, signalling an urgent need to strengthen training and retention strategies. Together, these developments offer a timely opportunity for leaders to shape a more sustainable, respectful and resilient future.

The reforms may sound complex, but they align with a clear vision: more dignity, more choice and more transparency. The Aged Care Act requires providers to embed a Statement of Rights and update service agreements, digital capabilities and workforce training. For home care, Support at Home replaces current programs with streamlined delivery that improves access and clarity.

Yet, all this happens against a backdrop of deep workforce challenges. The aged care sector faces a projected shortage of 110,000 direct workers by 2030. This is already showing in regional services, where workforce scarcity is pushing older people kilometres from their homes. In the disability sector the warning lights are also flashing. Reports suggest many support workers lack adequate training and are prone to burnout.

There is cause for optimism. ARIIA is investing $3 million in the Aged Care Collaborative to spark workforce innovation through sector-wide collaboration. Meanwhile the budget has provided $2.9 billion to support aged care access and introduce better pay for workers. Investment in allied health training at La Trobe University promises long-term relief, with 400 more professionals entering the system each year from 2026.

Effective leadership will make these reforms meaningful. Here are practical actions leaders can take now:

• Embed rights‑based care by updating service materials and training staff on the Statement of Rights
• Build workforce resilience with meaningful support and training to reduce burnout risks
• Collaborate through initiatives such as ARIIA’s Aged Care Collaborative to co‑design innovative staffing solutions
• Plan for long-term workforce capacity through partnerships with educational institutions—workforce needs must guide learning pipelines

These steps can ensure reform translates into better outcomes for older Australians and people with disability. They signal to teams, clients and communities that change can be empowering, respectful and sustainable. Leaders who seize this moment with clarity and care will set a strong course for the sector’s future.

References

ARIIA. (2025, February 12). The Aged Care Collaborative will accelerate workforce innovation through collaboration. Aged Care Research & Industry Innovation Australia.

Australian Government Department of Health. (2025, June 17). New Aged Care Act to start from 1 November. Retrieved August 2025.

Australian Government Department of Health. (2025, June 11). Aged care access for all older people. Retrieved August 2025.

Australian Government Department of Health. (2025, May …). Aged Care Quality Bulletin #77 – May 2025. Retrieved August 2025.

CEDA. (2025). Australia is facing a shortage of at least 110,000 direct aged‑care workers within the next decade unless urgent action is taken [Media release]. Retrieved August 2025.

Class Professionals. (2025, August 7). Why Australia’s aged care staff shortage is getting worse and how relief workers help. Retrieved August 2025.

Courier‑Mail. (2025, August …). BlueCare nursing cuts to impact 2000 elderly Queenslanders. Retrieved August 2025.

Daily SA. (2025, August 26). Disability exodus looms as workers face burnout crisis. Retrieved August 2025.

KPMG Australia. (2025). Australian Federal Budget 2025. Retrieved August 2025.

La Trobe University. (2025). $82 million investment to tackle health worker shortage. Retrieved August 2025.

The Guardian. (2025, August 26). Dinner or a shower? Older people fear tough choices when Australia’s new aged care changes are rolled out. Retrieved August 2025.