INTHEBLACK February / March 2026 - Magazine - Page 22
F E AT U R E
“Investing in the care economy not only enables better (female)
participation in the workforce, but it also allows caregivers to
reduce time poverty and enjoy their right to rest and leisure.”
IROMI PERERA, CENTRE FOR A SMART FUTURE
AGED-CARE FINANCIAL REFORM
As populations age, the provision of
affordable but sustainable aged care will
be one of the most critical challenges
within the care economy.
In Australia, the June 2025 Aged Care
Financial Performance Survey Report from
StewartBrown indicates that the sector needs
urgent investment to address workforce
shortages and declining profitability across
residential and home-care services. The survey
participants reported an operating deficit
of A$1068 per bed per annum, highlighting
the cost pressures on such facilities.
For its part, the Australian Government
has committed A$17.7 billion to support
the Fair Work Commission’s case to increase
award wages for 400,000 workers in the
aged-care sector.
“That’s pleasing, but it is not enough,” says
Daniel Nasrallah FCPA, CFO of VMCH,
which provides aged care, retirement living,
disability and in-home care services across
Victoria. He believes aged-care providers
are walking a tightrope as they balance
a commitment to the care economy with
additional compliance and red-tape
provisions that can make it more
difficult to sustain operations.
For example, recent government requirements
ensure residents receive a set amount of direct
care each day, a move that has added significant
administrative responsibilities for providers.
“If care minutes fall below the mandated level
[215 per day], it is flagged and could impact
future funding,” Nasrallah explains.
With an eye to the future, he believes it
will take a “collaborative effort” between
government, providers and care receivers
to ensure quality aged care continues to
be delivered. “We’ve all got to play a part
in this and I think we will get there.”
Michael Holdom FCPA, chief operating
officer of Goodwin, an Australian not-for-
22 INTHEBLACK February/March 2026
profit aged-care provider, agrees that reining
in fragmented compliance obligations could
help the sustainability of the aged-care sector.
He points out that many providers have gone
from having one manager handling compliance
to now putting on dedicated teams. “It is death
by a thousand cuts,” he says.
Holdom says Goodwin is proud to
be playing its part in the care economy.
One challenge that needs addressing, he
believes, is finding a better way to balance
care for older people in hospital versus care
in an aged-care facility.
“What is the mechanism whereby we
can get some of the frail or older individuals
with complex needs out of the hospital
and care for them in aged-care environments
which are dedicated to their needs?” he asks.
“There are programs out there trying to
address this, but I don’t think we have
come up with a perfect solution yet.”
Holdom also hopes that there can be
a greater understanding of the role and
challenges facing aged-care providers as they
contribute to the care economy. He highlights
out-of-date media reports that suggest that
aged-care providers are making significant
returns and that government funding should
be enough without contributions from
residents and clients. “The full story never
seems to get out about aged care.”
A ROLE FOR ACCOUNTANTS
For financial services and accounting
professionals, the care economy presents
an opportunity to help develop sustainable
funding models, improve cost transparency
and support investment in care infrastructure.
Dawson says having financial advisers who
can bridge business and social needs is essential.
“This is the fastest-growing sector of the
economy and the labour force. We absolutely
need the input of people who have the skills
and expertise to assess where risks exist, and
