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Consumer choice and control within a highly regulated, market-based system in Australia - P4H Network

Consumer choice and control within a highly regulated, market-based system in Australia

Australia’s long-term care system operates within a tightly regulated, market-based framework that emphasises consumer choice and control. In this country report, published by the WHO Centre for Health Development, authors Sarah Wise, Michael Woods, and Kees van Gool examine how government subsidies, provider regulations, and individual contributions work together to support access to in-home and residential aged care services. Eligibility is based on need, with particular provisions for Indigenous Australians and people at risk of homelessness.

The upcoming Aged Care Act, set to take effect in July 2025, aims to improve equity, introduce price caps, and enhance transparency in care delivery. Notably, Australia’s consumer-directed approach allocates funding directly to individuals, empowering them to tailor services to their needs. Despite growing investment, challenges remain—including long wait times for home care packages and reduced funding for Indigenous health services. The report provides timely insights for countries seeking to strengthen long-term care in ageing and increasingly diverse populations.

Reference
Sarah Wise, Michael Woods, and Kees van Gool , Consumer choice and control within a highly regulated, market-based system in Australia, WHO Centre for Health Development, 16 Apr 2025