Aug 31

Aged Care Workforce Crisis

Navigating the Perfect Storm

The aged care sectors in both Australia and New Zealand face a serious and growing workforce crisis that threatens the quality of care. This problem is worsened by an unprecedented demographic shift, with a rapid rise in the older population in both countries. The expected demand, such as the need to quadruple Australia's aged care workforce by 2042, requires major systemic reforms rather than minor adjustments.
Here are the specific issues encountered by management, residents, and teams, along with current initiatives and future suggestions:

Problems Faced by Management, Residents, and Teams

1. For Management:
  • Chronic Workforce Shortages: Both countries experience severe shortages, especially in regional and rural areas. This makes it hard to properly staff facilities and meet rising demand.

  • Financial Viability and Underfunding: A large percentage of Australian residential aged care providers reported operating at a loss (69% in 2021-22), highlighting structural problems and inflexible pricing mechanisms. New Zealand also identifies underfunding and outdated funding models for both Aged Residential Care (ARC) and Home and Community Support Services (HCSS). This financial pressure directly affects the ability to attract, retain, and adequately pay staff.

  • Attraction and Retention Challenges: Despite efforts like wage increases, attracting and keeping aged care workers remains difficult due to issues around pay, working conditions, and training opportunities. The sector's "really bad name" in the media makes recruitment even harder.

  • Increasing Complexity of Care Needs: The average caring task in New Zealand now demands higher skill levels, reflecting the shifting needs of an ageing population with more complex health issues. Management must ensure their workforce is not only larger but also more highly skilled and continuously trained.

  • Meeting New Quality Standards: Australia's reforms introduce new requirements, such as a 24/7 Registered Nurse (RN) on site from July 1, 2023, and a 200-minute care target per resident per day from October 1, 2023, which increases pressure on staffing levels.

2. For Residents:
  • Impact on Quality of Care: Chronic staff shortages directly compromise the quality of care older people receive.

  • Overlooked Basic Needs: Past failures and public concerns resulted in the clear inclusion of "food and nutrition" as a standalone quality standard in Australia, highlighting that these fundamental aspects were previously neglected or insufficiently addressed.

  • Inconsistent Carers and Reduced Hours: Advocacy groups in New Zealand have raised concerns about gaps in home care services, including fewer hours, inconsistent carers, and inadequate training, often due to underfunding.

  • Limited Autonomy and Dignity of Risk: Traditionally, care models could be paternalistic, where providers unilaterally decided what was "safest." Recent reforms aim to shift towards person-centred care, recognising "dignity of risk" and empowering older residents, with their families, to make informed choices about their care.

  • Material Ethnic Inequities in Access: New Zealand's review specifically identified "material ethnic inequities in accessing aged care services," indicating systemic disparities that affect residents from diverse backgrounds, particularly Māori.
3. For Teams/Workers:
  • Pay Dissatisfaction: In Australia, 40.3% of aged care workers were dissatisfied with their overall pay in 2024, despite a 15% rise in minimum award wages. This indicates compensation issues persist.

  • Workload and Burnout: Stress and burnout are often cited as reasons for care workers in New Zealand to consider quitting. Australian workers report working unpaid hours because there is "too much work to do". This shows that intrinsic motivation to care is eroded by systemic problems.

  • High Intention to Quit: About one-third of nurses and a quarter of care and support workers in New Zealand planned to leave their jobs within 12 months, according to a 2019 survey.

  • Rising Skill Requirements: As the needs of an aging population grow, care workers must become more skilled and undergo ongoing training.

  • Negative Public Perception: The belief that aged care has earned "a really bad name" in the media can affect morale and recruitment.

Main Concerns

The main concerns revolving around aged care staffing include:

  • Chronic and escalating workforce shortages that threaten the delivery of quality care.

  • Inadequate compensation and challenging working conditions (e.g., high workloads, burnout, and unpaid hours) that lead to dissatisfaction and high staff turnover.

  • The financial unsustainability of the sector directly affects the ability to adequately fund staffing levels and worker remuneration.

  • Ensuring quality of care and safety for residents, which is directly connected to sufficient and skilled staffing.

  • Addressing ethnic disparities and providing culturally safe care, especially for indigenous communities.

What is Being Done or Could Be Done to Improve the Situation

Both countries are implementing various strategies and have recommendations for future improvements:

1. What Is Being Done (Recent Initiatives):
• Australia:

  • Wage Increases: A 15% raise in minimum award wages for aged care workers, including RNs, enrolled nurses, personal care workers, and home care workers, effective from 30 June 2023.

  • Staffing Mandates: Implementation of a 24/7 Registered Nurse (RN) onsite in residential care from July 1, 2023, and a care target of 200 minutes per resident per day from October 1, 2023.

  • Training & Screening: Ongoing Fee-Free TAFE programs to support new apprentices and trainees, along with stronger worker screening standards.

  • Digital Transformation: Major digital transformation initiatives aimed at fostering new, improved, and more efficient methods of delivering care, thereby boosting workforce productivity and capacity.

• New Zealand:

  • Health Workforce Plan 2024: Presents a strategy for a more sustainable workforce, emphasising changes in care delivery models and improving supply through local training, more efficient overseas recruitment, and better retention efforts.


  • International Recruitment Support: The International Recruitment Centre provides streamlined services, including free immigration advice for Health NZ employees, focusing on ethical international recruitment.

  • New Nurse Support: Programs such as SFYP (Supported First Year of Practice), NEtP (Nurse Entry to Practice), and NESP (New Entry to Specialty Practice) are established to assist new nursing graduates transitioning into aged care.

  • Older Workers Employment Action Plan: Seeks to assist those aged 50 and over in securing sustainable employment and promotes inclusive hiring practices among employers.

2. What Could Be Done (Recommendations for the Future):
• For Policymakers:

  • Holistic Workforce Strategy: Develop comprehensive strategies that go beyond wage increases to include workload management, burnout prevention, clear and appealing career pathways, and ongoing professional development.


  • Sustained and adaptable funding models: Create flexible systems that accurately represent the real cost of high-quality care, including mechanisms for regular review to address changing needs and inflation.

  • Deepen Equity Commitments: Consistently incorporate principles of cultural safety and equity for Indigenous populations into all aspects of policy, funding, and service delivery, ensuring meaningful co-design with Indigenous communities.

  • Accelerate Digital Transformation: Invest wisely in solid digital infrastructure and assistive technology to improve care, enhance efficiency, and broaden accessibility, making sure solutions are inclusive of those with limited digital skills.


  • For Providers:

  • Invest in Workforce Well-being: Focus on staff well-being by adopting strategies that manage workloads effectively, offer access to mental health support, and provide clear pathways for skill enhancement and career advancement.

  • Leverage technology strategically: actively adopt suitable technologies to improve care quality, increase operational efficiency, and enable seamless communication, in line with national digital transformation agendas.


• For Older People and Families:

  • Engage with Advocacy Services: Actively utilise available advocacy services like Australia's National Aged Care Advocacy Program (NACAP) or New Zealand's Age Concern and Grey Power to understand rights, navigate systems, and resolve concerns, thereby contributing to service improvement.


The future success of aged care systems depends on ongoing adaptation, consistent investment, and real collaboration among governments, providers, the workforce, older individuals, and their families. The rising emphasis on technology, such as Australia's "CareTech" export ambition and New Zealand's Hira Programme, shows a strategic shift towards technology as a key enabler for tackling systemic issues like workforce shortages and growing demand.

The aged care sectors in both Australia and New Zealand are currently going through significant and necessary changes, dealing with rapidly aging populations and ongoing, serious workforce shortages. The main goal for both countries is to create more integrated, transparent, and responsive aged care systems where older people can age with dignity and independence, supported by a valued workforce and strategic use of technology.
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