Enkindle has published its Home Care Provider Outlook Report 2025, which shows financial viability as the major concern of providers and preparedness for incoming reforms as the top priority.
The aged care consultancy firm noted this is the first time financial viability has surpassed workforce shortages as the primary concern for providers.
Enkindle received over 290 responses from home care leaders across Australia, who collectively shared over 3,430 written comments and responses on their view of home care in 2025.
Concerns surrounding financial viability is closely linked to the incoming new Aged Care Act, with providers highlighting the uncertainty around future pricing models, reduced funding and escalating costs as cause for worry. These concerns are accompanied by the increasing compliance expectations, tight timeframes and unclear rules.
Responses were gathered prior to the announcement of the new Aged Care Act being delayed to November. But Enkindle founding partner Jennene Buckley said the delay has not necessarily eased provider concerns as they were still waiting on timeframes for the finalisation of the Aged Care Rules and answers to questions about the Support at Home business model.
Ms Buckley said concerns around financial viability was not about resistance to reform but rather a need for certainty, as providers were being asked to transition to a new system without clarity on the final legislation, pricing, or digital systems readiness.
To prepare for the changes, 47 per cent of providers have nominated a project lead and are planning the implementation of the new Act, Enkindle said.
However, many providers indicated they still feel underprepared, with small providers in particular expressing concern in their responses about the viability of continuing under Support at Home and more than a quarter – 27% – indicated they were waiting for more details before they started planning and allocating resources.
Other findings
Technology readiness for the upcoming reforms was another major concern, with 17 per cent of participants indicating it was their biggest worry. Providers have acknowledged they need to invest in more online service options for clients but have said there needs to be an improvement to both government and industry systems before they can invest in technology.
Providers listed telehealth, smart home technology, AI in business processes and predictive analytics as the most impactful. However, they also reported that embracing such technology feels out of reach due to limited digital infrastructure, a lack of skilled workers and the significant cost of investment.
Providers called for financial grants, subsidies, tax incentives and investment in workforce training as necessary to support technological transformation, particularly for those operating in rural and under resourced areas.
Identified strategic growth opportunities
Providers indicated that restorative and reablement services were the top strategic growth opportunity for the sector, followed by dementia care. This signifies a policy shift and provider realignment toward clinically focused care, Enkindle noted.
Providers commented in the survey that while there are significant missed opportunities in areas such as geriatric mental health, rehabilitation and reablement, and chronic disease management, the funding must be sustainable.
“This is a sector that’s kept older Australians safe through a pandemic, floods and fires and continues to respond to every policy shift and still delivers care day in and day out,” Ms Buckley said.
“They’re not waiting for perfect conditions. They just want a fighting chance and they’ll keep showing up until the job is done.”
Ms Buckley added that the decision to delay the new Act to November “must not be misinterpreted as a result of provider inaction.”
The survey findings are clear – providers are progressing, even in the face of uncertainty, she said.
“Instead, the delay stems from government readiness shortfalls, specifically, unfinalised subordinate legislation, incomplete policy detail, and a lack of digital readiness to support new payment and claiming systems,” Ms Buckley said.
“We’ve said it before, the real measure of success for government is not the rollout date. It’s whether the 2,000 community-based providers serving older Australians today are viable post-2027. Anything less is reform in name only,” she added.
This article originally appeared in Australian Ageing Agenda.
Follow Australian Ageing Agenda on LinkedIn, X and Facebook, sign up to the twice-weekly newsletter and subscribe to premium content or AAA magazine for the complete aged care picture.