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Productivity Commission: hope in aged care but plenty of room for improvement

1 min read

The median time between ACAT approval and entry into residential aged care in 2023-24 was 136 days, according to the Productivity Commission (PC)'s Report on Government Services 2025 on aged care services.

The result was down from a wait of 152 days in 2018-19, back when the Morrison Government called a Royal Commission into Aged Care Quality and Safety which triggered the wave of reforms the sector is grappling with today.

Similarly, in 2023-24, the median time between ACAT approval and the commencement of home care services was 118 days, down from 168 days the previous year, and a significant improvement on 2018-19, when the median wait time for older Australians to commence home care services after ACAT approval was 447 days.

The latest data from the Department of Health and Aged Care shows there are still more than 76,000 people waiting on a Home Care Package at their assessed level of need and expected wait times for a Level 4 Home Care Package have blown out to 15 months. The Government has a goal of reducing wait times to three months by 2027.

Source: Productivity Commission Report on Government Services 2025

The Productivity Commission report also reveals slight workforce improvements. In Q4 2023-24, 9,328 aged care workers left their jobs in aged care, the equivalent of just over 5% of the workforce. The figure is about 1,000 fewer than the number that left in Q1 of the same year which could indicate reduced turnover, possibly due to the Fair Work Commission's pay rise for aged care workers.

The data on ACAT assessments was less positive. In 2023-24, the median for the time between referrals for an aged care assessment and ACAT approval was 22 days, up from 17 days the previous year, and 15 days the year prior to that.

The report, which contains 80 data tables, is a mine of information, but some of the most revealing data, including data on the number of older Australians who need more formal assistance than they are currently receiving, is too old to be of much value.

The average annualised subsidy for aged care rose nearly 30% from $81,443 per claim day (under ACFI) in 2022-23 to $105,157 (under AN-ACC) in 2023-24.