7 April 2026

The financial landscape of residential aged care in Australia has become increasingly complex. Providers are facing a convergence of pressures—rising labour costs, tighter funding models, increasing compliance requirements, and growing expectations from residents and families.

Since the introduction of the Integrated Assessment Tool (IAT) on 1 November 2025, there has been a rapid and unprecedented surge in appeals and review requests challenging client classifications. As of 30 March 2026, 834 internal review requests have been lodged relating to IAT decisions, according to evidence presented at a Senate inquiry.