summary:
- New data reveals approximately 1,000 aged care facilities remain non-compliant with mandatory care minute targets just two months before financial penalties commence.
- From 1 April 2026, metropolitan providers face a sliding scale of AN-ACC funding reductions for failing to meet the 215/44-minute thresholds.
- Compliance with the RN target has consistently outpaced compliance with the overall total direct care target highlighting a significant shortage of PCWs
- Strategic agency partnerships and technology integration are becoming essential survival tools for maintaining funding levels without eroding operational margins.
As the 1 April 2026 reporting deadline approaches, the Australian aged care sector finds itself at a critical crossroads. According to data released by the Department of Health and Aged Care, while sector-wide adherence to care minute mandates has improved from 44% to 60% over the past year, a substantial gap remains. Industry analysis indicates that approximately 1,000 providers are currently operating below the required staffing thresholds as the deadline for financial penalties looms. For facility managers and staffing coordinators, the "care minute" is no longer just a clinical metric; it is now a direct determinant of financial viability.
the high cost of non-compliance.
The introduction of the sliding scale for the National Weighted Activity Unit (NWAU) weighting means that non-compliance is about to become expensive. For metropolitan operators, this highlights a significant risk to revenue; failing to meet the 215/44-minute targets could trigger a reduction in Base Care Tariff (BCT) funding of as much as $33.41 per resident, per day. For a standard 100-bed facility, this equates to a substantial monthly revenue shortfall and creates a difficult paradox for providers: pay higher labour costs to secure funding, or accept the funding cut and risk a downward spiral in service quality and compliance.
overcoming the systemic PCW shortage.
The data reveals a telling disparity in the current workforce. UARC analysis highlights that compliance with the RN target (81%) has consistently outpaced compliance with the total direct care target (67%), suggesting personal care worker (PCW) shortages are a significant cause of non-compliance. This data confirms the reality we see on the ground at Randstad Health and Aged Care: securing the sheer volume of qualified direct care workers required is currently the primary strain on sector-wide compliance.
strategic levers for the final countdown.
With only weeks remaining until penalties are triggered based on October–December 2025 quarter data, how should providers respond?
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1. moving beyond "crisis" agency use
In a penalty-driven environment, last-minute "emergency" agency bookings are the most expensive way to fill gaps. Proactive facility leadership is moving away from reactive placements in favour of a structured contingent workforce strategy. By securing committed aged care professionals for multi-week blocks (typically 4 to 8 weeks), providers can stabilise their rosters, ensure consistent care minute delivery, and gain better control over labor costs before the 1 April 2026 penalties take effect.
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2. human-centric technology
While the government’s virtual nursing trials offer a glimpse into the future, the immediate solution lies in digital workforce management. Real-time tracking of care minutes allows managers to identify "red zones" mid-shift, rather than discovering a deficit at the end of the quarter when it is too late to rectify.
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3. balancing compliance with sustainable workforce models
As care minute enforcement tightens, providers are being challenged to maintain compliance without placing unsustainable pressure on their permanent workforce or operational budgets. The most resilient organisations are shifting toward blended staffing models that combine core team stability with flexible, pre-planned contingent support. This approach protects care delivery, reduces burnout, and preserves funding certainty - ensuring facilities can continue investing in service quality, workforce development, and resident outcomes rather than diverting resources to reactive short-term fixes.
the randstad perspective: partnership over placement.
At Randstad Health and Aged Care, we understand that the coming months are about more than simply meeting ratios - they are about protecting the long-term sustainability of your facility. The providers currently facing non-compliance are not falling short through lack of effort, but through limited access to reliable talent pipelines, real-time workforce visibility, and the administrative capacity required to stay ahead of reporting obligations. Our role in 2026 is to close each of these gaps.
Alongside supplying fully compliant, high quality aged care nurses and carers, we support facilities with automated care minute tracking, real-time compliance visibility, and streamlined reporting - reducing administrative burden, improving decision-making mid-shift, and giving valuable time back to clinical and operational leaders.
This integrated approach ensures every roster decision contributes not only to safe care delivery, but to funding protection, workforce sustainability, and future service quality.
is your facility at risk on 1 april?
Don’t wait for compliance pressure to impact your funding or team. Contact us to discuss a tailored workforce and compliance strategy that secures your care minutes, reduces administrative strain, and safeguards your clinical standards.
Matt Hodges
national director - health & aged care
