Aged Care reform from 1 November: Navigating change amid workforce pressures

Australia’s aged care sector has entered a new era of reform following the 1 November 2025 changes — arguably the most transformative shift since the Royal Commission.

These reforms redefine how providers plan, staff, and fund care, whilst balancing a myriad of compliance reporting including audited care-minutes reporting.

But beneath the policy headlines lies a deeper challenge: ensuring the sector has the workforce capacity, capability, and resilience to meet the needs of an ageing population that is growing faster than the available supply of care workers.

With demand for aged care services expected to double by 2050, the success of reform will hinge on one factor above all others — the ability to retain, attract, and grow a sustainable workforce.

This makes workforce retention not just a people issue, but a strategic and financial imperative for every provider navigating the changing landscape.

The question now is not whether the system will change — but how ready providers are to adapt, grow, and thrive in this new environment?

Workforce turnover remains one of the greatest challenges in aged care. High attrition disrupts continuity of care, increases workload pressures, and undermines team stability – making retention a critical focus for providers striving to deliver consistent, high-quality care.

But the impact of attrition now extends beyond care quality. With growing pressure to deliver more care with fewer staff, high turnover directly threatens providers’ ability to meet both quality standards and funding requirements.

From 1 April 2026, metropolitan aged care providers (MM1) face funding changes tied to care minute delivery:

• Base Care Tariff drops from 0.500 to 0.387 National Weighted Activity Unit (NWAU)
• The 0.113 NWAU difference becomes a performance-based supplement
• Full supplement is paid only if 100% of total and RN care-minute targets are met
• If delivery falls below ~85%, the supplement will be zero.

In this environment, retention is no longer just a workforce issue — it’s a funding imperative. Without a stable team, providers risk a self-reinforcing cycle: turnover → missed targets → reduced funding → weaker retention capacity.

Migration is increasingly recognised as a critical lever to supplement local staff, support mandatory care-minute targets, and stabilise service delivery in aged care.

By strategically leveraging these pathways, providers can strengthen their workforce, reduce reliance on agency staff, and maintain compliance with care-minute delivery — supporting both quality care and sustainable funding outcomes.

Stabilising and growing the aged care workforce require more than reactive fixes — it demands a strategic, multi-layered approach. Mapien’s workplace strategists deliver tailored solutions that integrate planning, culture, psychology, migration and compliance.

Here’s how we address the sector’s most pressing workforce challenges:

Aligning these workforce levers allows providers to retain skilled staff, meet care-minute targets, and protect funding, all while building a culture where employees feel valued and engaged.

As aged care reform reshapes the sector, workforce sustainability has never been more critical. From leadership and culture to migration and compliance, the most effective strategies will be those that are informed by the people on the ground.

Mapien is ready to support providers in navigating workforce challenges and driving meaningful change.