Why aged care’s workforce challenge may outlast infrastructure investment

Australia’s aged care sector is preparing for significant expansion following the Federal Government’s $3 billion aged care funding package announced in the May Federal Budget. The investment includes $1 billion dedicated to personal care services and the delivery of 5,000 additional aged care beds across the country. 

On paper, it sounds like progress. More beds, more services, more funding.

But across the sector, providers are warning that infrastructure alone will not solve aged care’s biggest challenge: building and sustaining the workforce required to deliver increasingly complex care.

Because while new buildings can be constructed relatively quickly, developing a skilled, resilient workforce is a much longer game. 

Infrastructure is only part of the solution

The Australian Nursing and Midwifery Federation (ANMF) welcomed the Federal Budget investment, describing it as an important step forward for the sector.

While we’ve seen some significant reforms in aged care since the Royal Commission, our members continue to tell us that the system is still not fixed.” says Annie Butler, Federal Secretary of the ANMF.

The ANMF also pointed to growing demand across the sector and ongoing workforce pressure across aged care services.

For providers on the ground, the challenge extends well beyond simply filling vacancies.

Kim Attenborough, CEO of Suncare Community Services, says the sector’s workforce model is evolving rapidly as older Australians increasingly seek support that helps them remain independent and connected to their communities for longer.

“Our focus is not only on recruitment and retention, but on building a workforce that can support reablement, restorative care and healthy ageing outcomes,” says Attenborough.

“Older Australians want to maintain their independence, mobility, and connection to community for as long as possible, and that requires a skilled and compassionate workforce.” 

Aged care is becoming more operationally complex

As demand for in-home and community-based care grows, providers are also managing increasing clinical complexity, workforce fatigue, and changing expectations around care delivery.

The sector continues to face challenges attracting and retaining skilled frontline, clinical and allied health workers, particularly in regional and community based care,” says Attenborough.

“Increasing care complexity and workforce fatigue are also placing pressure across the sector.” 

That complexity is also reshaping the type of workforce providers need to build.

Rather than relying solely on traditional frontline care models, many organisations are investing more heavily in allied health, restorative care, and multidisciplinary teams designed to support long-term wellbeing and healthy ageing.

“This multidisciplinary approach helps older Australians maintain strength, mobility, confidence, and independence for longer.” Attenborough explains. 

For healthcare leaders, this creates a much broader operational challenge than simply increasing workforce numbers. It requires investment in leadership, workforce capability, professional development, and long-term sustainability planning.

Why psychological safety is becoming part of workforce strategy

One of the more significant shifts emerging across aged care is the growing focus on workforce wellbeing and psychological safety.

As providers navigate ongoing reform, funding changes, and increasingly complex care conversations, many workers are operating under sustained emotional and operational pressure.

“There is also growing recognition of the importance of psychological safety for workers delivering care in the community,” says Attenborough. 

Ensuring workers feel safe, supported and equipped to have these complex conversations is an important part of workforce sustainability and quality care delivery.” 

That focus is becoming increasingly important as aged care providers compete for skilled staff in an already stretched healthcare workforce.

The future of aged care depends on workforce capability

While additional infrastructure and funding will likely improve access to services, sector leaders say a bigger question remains: will the sector have the workforce capacity required to support long-term demand? 

“No. Infrastructure is important, but Aged Care is ultimately delivered by people,” says Attenborough. “Investment in workforce capability, training, leadership and wellbeing must occur alongside infrastructure investment to ensure sustainable, high quality care outcomes.” 

As the sector continues shifting towards prevention, restorative care, and healthy ageing models, workforce sustainability may become one of the defining operational challenges of modern aged care.

Because in the end, aged care isn’t just about building more rooms. It’s about building the workforce capable of caring for the people inside them.

Sources:

Australian Nursing and Midwifery Federation. (2026). ANMF welcomes Albanese Government’s $3 billion funding for aged care. https://anmf.org.au/media/media-releases/anmf-welcomes-albanese-governments-3-billion-funding-for-aged-care/

Suncare Community Services. (2026). Suncare Community Services. https://suncare.org.au/