Beyond Compliance: How Australia's Aged Care Reforms Create an Innovation Imperative

The findings from the 2021 Royal Commission into Aged Care Quality and Safety didn't mince words. It described a sector 'deeply analogue' and 'well behind other sectors in the use and application of technology.' It didn’t provide a single, clear roadmap to reform, but it certainly made it clear that reform was necessary.

That report became a catalyst for transformation. The Aged Care Act 2024, which commenced on 1 November 2025, represents the most significant overhaul of aged care legislation since 1997. This rights-based framework places older Australians at the centre of a system now demanding accountability, transparency and demonstrable quality of care.

For providers, it means that compliance is now the floor, and innovation is the pathway to sustainable, high-quality care.

A System Under Pressure

Australia’s aged care system is facing rising demand alongside reforms that require stronger quality, safety and transparency. The 2024–25 Budget includes a $2.2 billion package to strengthen the quality of aged care services, targeting faster access to in-home care, workforce support, a more capable regulator and better technology for the sector.

This includes $531.4 million for an extra 24,100 Home Care Packages in 2024–25, $111 million to strengthen quality and safety oversight, and $1.4 billion for critical aged care technology, platform maintenance and enhancements to keep digital systems contemporary and compliant with legislation.

The investment acknowledges structural challenges that technology alone cannot solve, yet technology remains essential to addressing them. Labour-intensive care models face mounting pressure as demand outpaces workforce capacity. In 2023, 82 per cent of health occupations in Australia faced shortages, particularly among general practitioners and nurses. With life expectancy rising and the elderly population projected to exceed eight million by 2050, these pressures will only intensify.

Concurrently, more older Australians are choosing to remain at home. This shift toward home-based care demands new approaches to safety monitoring, clinical oversight and family communication that traditional in-person models cannot efficiently deliver.

Data as the Foundation for Smarter Care

Remote monitoring and virtual care platforms address these challenges by fundamentally changing how providers capture, analyse and act on health data. IoT sensors, wearables and telehealth systems generate continuous streams of information on falls risk, behavioural changes and vital signs. The value lies in transformation: raw data becomes actionable intelligence that enables early intervention before hospital admission becomes necessary.

AI-assisted triage and automated workflows multiply staff effectiveness. When algorithms flag deteriorating conditions or medication adherence issues, clinicians can prioritise their attention where it matters most. Digital care plans integrate with family communication portals, creating transparency that builds trust while documenting the evidence of quality care that regulators now require.

For providers navigating the new regulatory environment, these capabilities translate directly to measurable outcomes: reduced avoidable hospital admissions, demonstrable falls prevention, clear audit trails showing care responsiveness, and improved engagement with families and carers.

Proven Capability for Australian Conditions

FPT has demonstrated these principles at scale through its partnership with a leading Nordic virtual care provider—an experience that translates well to Australia given the shared pressures of ageing populations, workforce constraints, and a strong emphasis on publicly funded, quality-regulated care. That collaboration delivered a platform supporting 1.5 million virtual care visits with 99.99 per cent uptime, integrating digital clinic services, long-term care monitoring, security alarm processing and remote consultation capabilities into a unified ecosystem.

The platform architecture addresses the specific requirements Australian providers face under the new Act: hyper-personalised care pathways that respect individual rights and preferences, optimised staff allocation that maximises time for direct care, and integrated data systems that support clinical governance and audit readiness.

Tablet-based applications for care recipients, browser interfaces for care professionals, and mobile apps for family members create seamless experiences where convenience meets deep, data-driven understanding of each individual's health journey.

Turning Compliance into Competitive Advantage

The New Aged Care Act establishes a Statement of Rights that older Australians can enforce. Providers must demonstrate they deliver safe, quality care that respects autonomy, privacy and dignity. The strengthened Aged Care Quality Standards make explicit what good care looks like, and the regulatory framework includes robust complaints mechanisms and whistleblower protections.

Forward-thinking providers recognise this environment as an opportunity. Rather than treating new requirements as compliance burdens, they leverage digital transformation to deliver superior value across their operations. The providers who thrive will be those who use data and technology to create exceptional experiences for residents, families, staff and regulators alike.

FPT's capabilities align precisely with this direction, enabling providers to go beyond simply meeting government requirements. The goal is innovation that improves lives: aged care that is safer, more connected, more transparent and more person-centred than anything the sector has previously delivered.

The Royal Commission called for transformation. The legislation now demands it. The technology exists to deliver it. The question for Australian aged care providers is whether they will lead or follow.

Learn more about FPT here.