A recent report from the Committee for Economic Development of Australia (CEDA) has underlined what we as aged care providers have known for some time – that our sector faces a critical and long-term workforce shortage, and that coordinated action is required to ensure older Australians receive the care and dignity they deserve.
The CEDA report – Duty of Care: How to fix the aged care worker shortage – confirmed due to our ageing population, Australia will need an estimated 400,000 additional aged care workers by 2050.
The number of people aged 65 and over requiring care is expected to rise from 1.5 million today to 2.5 million by that time, with aged and disability carers projected to be Australia’s fastest growing occupation over the next decade.
In September, a Senate inquiry report called for a shift to a demand-driven system, which was also recommended by the Aged Care Royal Commission. However, the sector can’t meet the demand for care without increasing its workforce.
Aged care has traditionally relied heavily on migrant workers with an estimated 70,000 – or one-in-six personal care workers in the sector on temporary visas.
In December 2023, the Federal Government introduced its Migration Strategy to look at an essential skills visa pathway for lower wage migrant workers in sectors with critical workforce shortages, such as personal care workers in aged care.
However, according to CEDA’s report, the Government continues to rely on Aged Care Industry Labour Agreements (ACILA) – which cover three occupations: nursing support worker, personal care assistant and aged or disabled carer – to meet the shortfall.
These are not only a lengthy process (with reports it can take up to 12 months to negotiate ACILA access) they are not bringing in anywhere near enough workers to meet the shortfall.
In the two years since the ACILA was introduced in May 2023, Department of Home Affairs data indicates that at the end of June, just 2,426 temporary migrants were sponsored under all labour agreements.
Data shows most of those visas went to sponsor existing staff already in Australia, with only 10% issued offshore.
Juniper CEO Russell Bricknell said: “The current arrangements in place for skilled migrants are too lengthy, too expensive and have resulted in very little actual migration. In fact, 90% of visas under the agreement went to workers who were already in Australia, meaning ACILA is barely adding to the overall size of our workforce.
“Migrants have long been the backbone of aged care in this country because there simply aren’t enough Australians available to do this work, but current programs are clearly failing to address our worker shortage.”
Mr Bricknell said when discussing workforce shortages in aged care, it is also important to look at how much providers are spending on temporary staffing solutions.
Agency spend across various aged care roles is a clear indicator of the gap in workforce supply, highlighting not only how much it is costing providers to fill essential shifts, but also where demand for aged care workers is greatest.
Juniper data shows increased agency spend and growing demand, particularly for registered nurses and care workers
“Reliance on agency staff comes at a price beyond the financial — while agency workers are often highly skilled, they can’t provide the same continuity of care that permanent staff deliver,” Mr Bricknell said. “Over time, relying on agency staff also limits us from developing and investing in our own workforce.”
Mr Bricknell said simplifying current labour agreements and reducing red tape could make it easier for providers to bring in qualified, experienced workers while continuing to invest in developing the local workforce.
He added Juniper stands by CEDA’s key recommendations:
- The introduction of an essential skills visa for aged care occupations below the wage thresholds in recognition of the ongoing shortage and anticipated growth demand for workers
- Abolishing the three occupations covered by the agreement as they face critical shortage
- Waiving or reducing the Skilling Australia Fund levy for employers sponsoring a worker on an essential skills visa
- Making employers’ sponsorship costs payable pro-rata rather than upfront
- National consistent annual data on the aged care workforce to better support workforce planning
“These targeted migration initiatives, along with improved pay and conditions, better career development opportunities and greater recognition of skills, are the only way to meet future aged care needs,” Mr Bricknell added.
“Only by taking a comprehensive and collaborative approach can we ensure that every older Australian has access to safe, high-quality care, whether at home or in residential settings.”
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