Budget 2024: $1B for critical digital systems in aged care

The Australian government is pursuing further reforms in the aged care sector by infusing a new investment of A$2.2 billion ($1.5 billion) as part of Budget 2024-2025. Half of that will fund “significant technology and platform maintenance and enhancements” in critical aged care digital systems, ensuring they “remain contemporary and comply with legislation.” 

WHY IT MATTERS

Since the release of the findings of the Royal Commission into Aged Care Quality and Safety in 2021, significant changes have been enforced by the government. To meet more of the royal commission’s recommendations, it is now working on a new Aged Care Act which consolidates three existing legislations. It proposes a rights-based approach to providing care to older people, meaning they get to know their rights, expectations for care providers, and protections. The present Act, it is said, focuses on providers, instead of the people accessing their services. 

Underpinning the proposed Act is an A$1.4 billion ($1 billion) investment to fund upgrades in technology systems and digital infrastructure across the aged care sector. 

THE LARGER TREND

The royal commission’s 2021 report highlighted how the Australian aged care sector is “deeply analogue” and “well behind” the others in the use and uptake of technologies. This finding was further backed by a survey report the following year which noted the lack of critical digital systems and the reliance on paper-based systems in the country’s residential aged care sector. Another survey report released early this year also emphasised the lack of innovation, particularly the uptake of emerging technologies, within the sector. 

After accepting most of the royal commission’s recommendations, including 30 digital-related ones, the federal government initially deployed an investment of A$312.6 million ($200 million) for aged care’s ICT modernisation in 2022.

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