The aged care sector is seeking $A600 million in federal funding to help providers upgrade their technology systems to meet new regulatory requirements coming into effect in July 2025. The request comes as part of Ageing Australia's pre-budget submission for 2025-26, highlighting a critical gap between government expectations and providers' capability to implement mandatory changes.

While the 2024-25 Federal Budget allocated $1.4 billion for government ICT systems to support the new Aged Care Act, providers received no comparable funding to upgrade their own systems. The current government grant of up to $10,000 per provider falls significantly short of actual needs, with some organizations estimating their required IT transformation costs between $1 million and $2.3 million.

"ICT system investment and change will be critical for successful transition to the new Act," Ageing Australia states in its submission. The peak body is requesting $400 million for capital expenses, including system acquisition and upgrades, plus $200 million for operational costs such as training and skilled staff.

The funding would help providers implement new systems for pricing under the Support at Home program, worker training records, and changes to care minutes data collection and reporting in residential care. Many providers currently lack resources to invest in technology or cover operational costs associated with training and employing skilled business staff.

The submission notes significant variation in digital maturity across aged care providers, regardless of size. This disparity creates additional challenges in meeting the new regulatory requirements, which include enhanced reporting obligations and quality standards compliance.

The November 2024 announcement of $10,000 grants for IT changes has been criticized as insufficient given the scale of transformation required. Without adequate funding support, the sector warns that many providers may struggle to meet their new obligations under the Act or risk further compromising their financial viability.

The proposed $600 million technology fund aligns with the government's own Aged Care Data and Digital Strategy and Action Plan 2024-2029, which aims to improve the use of aged care data while reducing administrative burden. However, the sector argues that providers' ability to harness digital opportunities has been limited by both varying levels of digital maturity and ongoing financial challenges