Author: Yen Wong – Immigration Lawyer
Australia’s aged care sector is at a turning point. Our ageing population have providers facing increasing demand, evolving reforms, and a shortage of skilled workers which is outpacing supply.
As aged care providers strive to maintain quality care and compliance, the pressure to find sustainable workforce solutions has never been greater, but this is particularly relevant for regional and rural communities where attracting and retaining talent remains a constant struggle.
From workforce shortages and migration barriers to new policy directions and regional challenges, Australia’s aged care landscape is being reshaped in real time. Building resilience now depends on smarter migration planning, targeted workforce programs, and proactive engagement with reforms that will define the future of care.
Why is there a Gap?
Australia is grappling with the consequences of an aging population. The government last month put forward a $4.3 billion home care package, which, from July 2025, will support hundreds of thousands of Australians with home-based care, whether nursing, occupational therapy, or support with everyday living. There are a number of reasons for this push, one being the fact Australia does not have enough facilities or beds to meet growing demand.
Regional and rural aged care homes face a unique set of challenges compared to their metropolitan counterparts. At the heart of the crisis is a severe shortage of skilled workers, including Registered Nurses, Enrolled Nurses, and Personal Care Workers, all of whom are the backbone of quality aged care. While the national workforce is under pressure, regional and rural providers encounter additional barriers that include:
- Geographic isolation making it harder to attract staff willing to relocate.
- Limited access to training, infrastructure and professional development opportunities restricts the availability of skilled care workers in these areas and the ability to upskill local talent.
- Higher costs of living and housing shortages in some regional towns deter potential recruits.
According to a survey in the Aged Care Worker Report 2024, respondents reported working mainly in metropolitan areas (44.8%), regional centres (29.8%), rural towns (22.3%) and remote (3.1%). These statistics underscore a maldistribution of aged care workers in comparison to regional need. Despite raising wages up to 28.5% across the sector, predictions are that Australia’s workforce shortage in aged care will reach 110,000 by 2030 according to some estimates.
Recruitment and retention pressures
While international migration has traditionally supplemented Australia’s aged care workforce, complex visa pathways, migration reforms, strict English language requirements, and settlement barriers create additional obstacles for regional providers. Even when overseas workers are available, retention can become a challenge due to limited community infrastructure, cultural support, and career progression pathways in smaller towns.
The pressure on regional providers is further compounded by competition from metropolitan facilities that may offer higher salaries, broader professional networks, and more appealing lifestyle amenities. For many regional operators, the result is a revolving door of staff, which undermines continuity of care and adds financial strain through repeated recruitment efforts.
Risks to residents and providers
The consequences of workforce shortages extend well beyond provider operations. Residents in regional aged care homes are at risk of receiving inconsistent or inadequate care, leading to poorer health outcomes and reduced quality of life. Providers, meanwhile, face financial penalties, reputational harm, or even loss of accreditation if they fail to meet mandated standards. This creates a vicious cycle: the more strained a provider becomes, the harder it is to attract skilled staff to stabilise operations.
Moving toward sustainable solutions
Addressing the aged care workforce crisis in regional Australia requires a multi-layered approach:
- Investment in local training pipelines, including partnerships with TAFEs and universities to create practical, region-based learning opportunities.
- Incentive schemes for retention, such as housing support, relocation grants, community readiness programs and professional development programs tied to regional service.
- Collaboration between government, industry, and migration specialists to ensure compliance with new legislation while securing a sustainable workforce supply.
- Streamlining skilled migration pathways for nurses and care workers, with tailored incentives to encourage placements in regional communities.
Workforce and Migration Strategies
Strategising, developing and utilising a migration roadmap could become the central reason for a provider’s continuity and success, consideration your workforce in a regional setting. Some elements of a successful migration plan would include, but are not limited to the below:
- Convert temporary visa holders who are onshore in Australia
Audit existing Student visa holders, Temporary Graduate (485) visa holders and other staff on temporary visas and progress those who are meeting performance and English requirements to 482, 494 or 186 visas. According to surveys, there is a sizeable in-country pool in Australia.
- Consider other migration pathways and utilising them wisely
Consider the pairing of programs that run in parallel, such as:
- PALM Scheme
- 494 Skilled Employer Sponsored Regional (SESR)
- Aged Care Industry Labour Agreement (ACILA)
- Designated Area Migration Agreements and Labour Agreements
- Skilled Labour Refugee Labour Agreement
Another strategy could be to offer mature Registered Nurses the opportunity for sponsorship under the SESR 494 visa under a DAMA before the Nurse is 55 years of age where concessions are available may lift retention rates.Consider other migration pathways and utilising them wisely
- Advocacy and Lobbying
When new DAMAs are negotiated or extended, providers, regional bodies and unions may attempt to push for carve-outs or transitional protections. It will become increasingly important for providers to review their business plans and stay up to date with anticipated reforms.
We recommend proactively advocating or implementing internal migration policies to address changes.
Migration Changes impacting Regional Aged Care DAMAs
Where a sector has its own dedicated labour agreement (ACILA), duplicative listing of the same occupations in DAMA is now being pruned.
For example, in South Australia, effective 1 July 2025, occupations that are also listed under an Industry Labour Agreement (ILA, such as ACILA) will no longer be accessible via the South Australian DAMA program. In other words, if a given aged care occupation is “covered” by ACILA, that same occupation can no longer be nominated under SA’s DAMA regime.
An important caveat is that workers employed in home care roles may still be accessible via certain DAMAs and remain outside the exclusion. Thus, where a worker is serving under a Home Care or in-home aged care program, the DAMA pathway may remain viable, unless future policy changes explicitly close that too.
We anticipate that this important consolidation and exclusivity of aged care roles result in a ripple effect for other DAMAs that have aged care occupations listed for sponsorship. This change could lead to an increase in the uptake of the ACILA, or a shift where providers or networks may now consider expanding their model toward home care or community aged care to preserve access to DAMA nomination pathways for those workers, giving flexibility and a buffer.
Partnering for workforce success
Aged care is one of Australia’s fastest-growing industries as the demand for residential and home care services is projected to grow, whilst workforce numbers remain a challenge. It is a space that our team at Absolute Immigration Legal have been actively working in and would be happy to share any tips and insights on the workforce strategies and migration programs that are tailored and suitable for your business.
Considering new approaches to attract and retain overseas aged care workers? Contact our lawyers at +61 3 9070 5521 or admin@absoluteimmigrationlegal.com
*This article is for general information purposes only and does not constitute legal advice. For guidance tailored to your situation, please contact one of our qualified legal practitioners.