The aged care sector in Australia is facing a pivotal moment in 2025, grappling with compliance challenges, workforce pressures and rising complaints, as highlighted in the recent Aged Care Quality and Safety Commission Sector Performance Report for Q3 2024.

With the industry gearing up for major reforms under the new Aged Care Act, effective July 2025, providers have a critical window to address current gaps and align with future standards.

This blog explores the latest sector performance trends, key challenges providers are navigating and how leveraging technology can drive compliance and transformation in preparation for the upcoming changes.

Top trends in aged care sector performance

1. Compliance challenges

Aged care providers are under increasing scrutiny to comply with the Aged Care Quality Standards - with compliance rates significantly differing across residential and home services. While 84% of audited residential care services were fully compliant with all eight standards, only 64% of home care providers met the same benchmarks.

Standards 2 (Assessment and Planning) and 8 (Organisational Governance) emerged as the areas with the highest rates of non-compliance. Areas of concern in relation to these standards included inadequate risk management, poor communication of changes in care and ineffective governance frameworks, all of which compromise the safety and wellbeing of older Australians.

2. Workforce regulation and governance

Workforce-related challenges persist, with complaints about staffing sufficiency ranking as one of the top issues in residential care. Although 91% of residential care services managed to maintain compliance with the 24/7 registered nurse (RN) requirement, recruitment, training and ongoing support remains a challenge for providers.

Governance is a critical consideration in workforce planning, as inadequate training, underdeveloped clinical governance frameworks and ineffective leadership systems are directly correlated to compliance failures and staff turnover.

3. Complaints and serious incidents

Complaints about aged care services continue to rise, with food quality, staffing levels and clinical issues among the top concerns raised by residents and their families. Food quality and variety made up 26% of all complaints in residential care. Ensuring culturally sensitive menus, adequate nutrition and dining experiences that promote independence will become key focus areas as the upcoming Food and Nutrition Standard (under the reformed Aged Care Quality Standards) rolls out in 2025.

In terms of incident management, data from the serious incident response scheme (SIRS) revealed that incidents of neglect, unreasonable use of force and emotional abuse were the most commonly reported. These issues reiterate the importance of enhancing risk management processes and cultivating person-centred care approaches.

4. Preparing for aged care reforms

The new Aged Care Act (2025) is set to introduce a person-centred care system, which includes a strengthened regulatory model, a revised set of Quality Standards and a Statement of Rights for older Australians. For providers, this means tighter obligations around workforce governance, financial sustainability and compliance.

Upcoming reforms emphasise continuous improvement, high-quality care and proactive complaints management systems, signalling the need for innovation and forward-thinking strategies.

The challenges aged care providers face

While striving to deliver high-quality and person-centred care, providers face several operational hurdles:

• Strained workforce capacity due to recruitment shortages, training gaps and insufficient support frameworks.
• Rising regulatory compliance costs with evolving Quality Standards and increased oversight.
• Increasing complexity of consumer needs, including managing dementia, medical complexities and diverse cultural backgrounds.
• Mounting pressure to maintain financial sustainability while adapting to reforms, increasing data collection and reporting burdens and compliance challenges.

Without the right systems in place, these challenges can compromise the safety, well-being and trust of residents and their families.

How technology is transforming aged care

Strategically adopting technology can alleviate many industry pain points while paving the way for compliance and improvement. Here are the key technological solutions driving innovation and efficiency in aged care:

1. Digital health platforms

Platforms that enable remote monitoring of resident health, medication management and care coordination can streamline clinical processes and enhance care outcomes, allowing providers to improve clinical oversight and quickly identify areas of concern.

2. Predictive analytics

Artificial intelligence (AI)-powered tools forecast demand, optimise staff scheduling and predict resource shortages. These insights minimise costs, maximise operational efficiency and improve care quality.

3. Electronic health records (EHR)

Centralising resident information through EHR systems enables seamless data management across teams and facilities. Additionally, EHRs ensure better care planning and adherence to clinical governance expectations.

4. Communication tools

Real-time family communication platforms ensure transparency in care plans and keep families informed. This bolsters trust and improves complaints management.

5. Compliance management software

Specialised platforms like Ideagen CompliSpace integrate governance, documentation, audits and reporting into streamlined workflows. This ensures providers not only meet current standards but are also well-prepared for the changes coming in 2025.

6. Smart home technologies

Internet of things (IoT)-enabled devices like sensors and wearables enhance resident safety, enable incident detection and promote independence - particularly in home care settings.

7. Training platforms

The use of e-learning systems such as Ideagen CompliSpace can provide staff with better access to compliance training and upskilling programs, such as dementia care and trauma-informed practice, as mandated by the new Quality Standards.

8. Telehealth platforms

For remote or rural providers, virtual care systems offer access to specialist consultations and reduce unnecessary hospital visits, ensuring resident care continuity. Investing in these technologies provides a path for providers to not only meet regulatory obligations but also to stand out for innovation and excellence in care delivery.

How providers can prepare for the aged care reforms

To ensure seamless implementation of the 2025 reforms and ongoing compliance requirements, here are some actionable strategies for providers:

• Conduct an organisation-wide audit of current policies and procedures to identify gaps against the updated regulations.
• Build or upgrade governance frameworks to prioritise a culture of accountability, inclusivity and safety.
• Invest in scalable compliance and governance technologies to prepare for new registration requirements and the adoption of a person-centred care model.
• Enlist the help of experts like Ideagen, which specialises in reform readiness tools tailored for aged care providers.

By aligning operations with reforms and adopting technology-driven solutions, providers can transform their operations to focus on what matters most - providing quality care that enhances the lives of older Australians.

Conclusion

The 2024 Aged Care Quality and Safety Commission Sector Performance Report reinforces the urgent need for providers to take proactive action amid rising challenges in compliance, staffing and complaints.

With the new Aged Care Act around the corner, now is the time for providers to focus on refining operational processes, restructuring governance models and seeking technological solutions that enable compliance and better care outcomes.

To discover how our tailored technology solutions can transform your organisation in time for these reforms, get in touch and prepare to lead the future of aged care today. delivery.