- Aged Care Reform
- Policy & Legislation
Labor's care agenda four years on: aged care gains, NDIS savings push
Key points5 points
- Federal parliament passed NDIS changes in August that tighten provider registration and base access on functional capacity rather than diagnosis.
- The reforms also aim to reduce unplanned, costly plan reassessments, though many implementation details are still pending.
- Only about two-thirds of self-reporting residential aged care homes were meeting the new care minutes targets as of mid-2026.
- The government plans to redirect part of the private health insurance rebate to fund 5,000 additional aged care beds each year, which is expected to face backlash.
- The care economy unit formed two years ago inside the Prime Minister's department has been dissolved in 2026, a sign social policy has slipped down the agenda.
Summary
Four years into its term, the federal Labor government has delivered aged care reforms, including new care minute targets and round-the-clock registered nurse requirements, though only about two-thirds of self-reporting residential homes were meeting the minutes targets as of mid-2026. Its NDIS overhaul, passed in August, raises the bar for provider registration and shifts access decisions toward functional capacity rather than diagnosis, with many details still to come. Cost pressures are now shaping policy more than expansion, with the dedicated care economy unit disbanded and departments asked to cut budgets. Providers should expect continued tension between savings measures and service quality commitments.