Australia’s aged care sector is about to undergo a major transformation—not just in laws, funding and rights, but also in how digital systems underpin care. As the Aged Care Act 2024 and the Support at Home program are rolled out from 1 November 2025, many aged care providers, older Australians and policymakers are focusing on the digital reforms that will support or hinder the change.
Digital changes promise improved efficiency, better connection between providers and clients, more transparency, and new ways for people to access and manage services. But with such change comes risk: if systems are rushed, poorly designed or exclude people with low digital literacy, the consequences may be serious.
This article explores what digital reform in aged care will involve in 2025, why it matters, what the potential pitfalls are, and what to watch to ensure the digital turn brings real benefits for older Australians.
What Digital Reform Is Being Introduced
From government announcements and public sector sources:
- Digital systems upgrade tied to new legislation: From 1 November 2025, digital systems including My Aged Care and the Government Provider Management System (GPMS) will be updated to align with the new Aged Care Act 2024 and Support at Home program.
- Better provider tools & updated reporting: Providers will need to update registration categories, pricing and services published via My Aged Care, submit some forms and claims through third-party or standardised digital tools, and integrate with provider payment systems.
- Resources for sector readiness: The government is releasing digital readiness checklists, “navigating reforms” resources, provider transition guides, webinar series (Tech Talks), and support with co-design via Digital Transformation Sector Partners.
- Stronger transparency via provider information: Public information about provider pricing, services, and finances will be more accessible. The “Find a Provider” tool will include more detail; providers must publish some cost data; reports are expected to be audited.
- New Financial and Prudential Standards: From 1 November 2025, there will be new financial governance requirements for providers, including liquidity standards and clearer definition of acceptable financial practices.
Why Digital Reform is Important
- Efficiency and timeliness: Better digital systems can reduce delays in assessments, payments, approvals and scheduling. In aged care, delays can severely affect quality of life.
- Transparency and accountability: Digital reporting and public provider information allow older people and their families to compare providers, see what services cost, and understand what they are paying for.
- Support scaling: With more older people needing service, digital tools help scale coordination (provider capacity, staff allocation, service tracking).
- Better client experience: Easier access, clearer agreements, less paperwork, better communication are particularly valuable for older people who rely on regular services.
- Regulatory oversight: Auditing, compliance, financial prudence, fraud detection are easier with stronger digital systems.
Key Risks & Challenges
- Digital literacy and access gaps: Some older people, especially in regional, remote or low-socioeconomic settings, may lack internet access, may not be comfortable with online systems, or may face sensory or cognitive barriers. If digital components are mandatory without accessible alternatives, some people may be disadvantaged.
- Provider capability and readiness: Smaller providers may lack funds, technical staff, or experience to implement new digital infrastructure, integrate updated systems, or train staff. Transition costs may be significant.
- System bugs, delays and rollout issues: Adding digital layers has inherent risk of technical issues, data migration problems, security vulnerabilities. If systems aren’t live-tested or pilots are insufficient, older people may suffer disruptions in care.
- Privacy, security and data risk: Sensitive health and financial data, personal information, service usage—if stored or handled digitally, must be protected. Data breaches or misuse could erode trust.
- Unintended exclusion or inequity: If digital tools become central to scheduling, accessing, reporting, those who cannot or prefer not to use them may get less responsive service.
Recent Developments & Signs of Progress
- The government has published the Aged Care Digital Reform page laying out what digital changes will happen, timelines, provider expectations.
- Quality Bulletin #75 (March 2025) includes information about new resources for providers related to Quality Standards and provider readiness tools, indicating efforts to prepare sector for both standard and digital changes.
- The Final Exposure Draft of Financial and Prudential Standards released September 2025 includes guidance for providers about liquidity standards and financial governance, which depends on accurate digital reporting and records.
For Providers: Indicators of Success
- Are providers updating their service information, pricing, and registration in My Aged Care as required?
- Is the cost of digital compliance manageable, especially for smaller or rural providers?
- Do digital tools and systems function smoothly—without frequent downtime, confusion, or broken forms?
- Is data privacy being robustly addressed, with clear policies, secure systems, and accountability measures?
For Consumers: Indicators of Success
- Is there clear communication and user support to help older people understand digital changes—such as new agreements, forms, or service updates?
- Is transparency improving, allowing people to see what providers are charging, understand cost breakdowns, and track how their co-contributions are used?
- Are digital tools accessible and easy to use, with minimal confusion or disruption for older consumers?
Recommendations to Ensure Digital Reforms Deliver
- Inclusive design & support: ensure that digital tools are designed with input from older people, people with disability, rural and remote communities; offer alternative non-digital options.
- Adequate funding & training for providers: especially smaller, regional ones; technical assistance, grants, shared platforms.
- Pilots and staged implementation: test changes (provider registration, service agreements, price publication) in selected areas before full rollout.
- Strong oversight & contingency planning: ensure fallback arrangements in case digital systems fail or are delayed.
- Clear communication, guidance and resources: what the changes mean for individuals; how to use new systems; where to get help.
- Privacy and security built in from the start, not as afterthought.
The digital reforms scheduled for aged care in 2025 offer real potential: increased efficiency, more transparency, smoother operations, and better experience for older Australians. But success is not automatic. Without careful planning, strong support for providers and older people, and inclusive design, digital change can make inequalities worse rather than ease them. Over the coming months, Australians will see whether the digital promise of aged care reform is delivered in full or remains partly a hope.
