Aged Care Crisis: Councils Abandon Services, What Happens Next? (2026)

The Quiet Crisis in Aged Care: When Bureaucracy Overshadows Humanity

There’s a story that’s been quietly unfolding in the corners of our communities, and it’s one that should make us all pause and reflect. Helen Redmond, a 76-year-old woman living with dementia, finds her greatest joy in the simple act of spending time with friends at her local aged care community group. But that joy is now under threat, as the Melton City Council, like a growing number of Victorian councils, is withdrawing from aged care services. What’s striking here isn’t just the decision itself, but the why behind it—a federal funding shakeup that’s leaving both clients and providers in the lurch.

What’s Happening and Why It Matters

The Commonwealth Home Support Program (CHSP), which funds aged care services through councils, is being replaced by the Support at Home program. On paper, this shift aims to give older Australians more choice and control over their care. But in practice, it’s creating a vacuum that councils—often trusted, community-rooted providers—are stepping away from. Personally, I think this is where good intentions collide with poor execution. The new system, while well-meaning, fails to account for the human element of care. It’s not just about dollars and cents; it’s about the relationships, the familiarity, and the dignity that come with consistent, personalized support.

The Human Cost of Policy Changes

Helen’s son-in-law, Kelsey Brookes, captures the essence of this crisis when he says, “It’s just devastating to think that [her care] might be replaced with a soulless, privatised service provider.” This isn’t just a logistical issue—it’s an emotional one. For families like Helen’s, these community groups are lifelines. They provide not just care, but connection. What many people don’t realize is that for older adults, especially those with dementia, routine and familiarity are critical. Disrupting that can lead to confusion, anxiety, and a profound sense of loss.

The Broader Implications

This isn’t just a local issue; it’s a canary in the coal mine for the future of aged care. Monash Mayor Stuart James’s warning of a “rat race to the bottom” as providers compete on price, not quality, is chillingly prescient. If you take a step back and think about it, this is a systemic issue. Federal funding isn’t keeping pace with the real cost of care, and councils are being forced to either subsidize the gap with ratepayer funds or step away entirely. This raises a deeper question: Are we prioritizing cost-efficiency over the well-being of our most vulnerable citizens?

The Role of Councils: A Trusted Pillar Eroding

Councils have long been a cornerstone of community care. They’re local, they’re accessible, and they understand the unique needs of their residents. But with the new funding model, they’re being pushed out in favor of a more centralized, privatized system. From my perspective, this is a mistake. Privatization often leads to cost-cutting, and in aged care, that means fewer staff, less personalized attention, and a decline in quality. One thing that immediately stands out is how this shift disproportionately affects women, who make up the majority of part-time workers in these roles. It’s not just about losing services—it’s about losing livelihoods.

The Unintended Consequences

The Council on the Ageing’s Ben Rodgers puts it bluntly: older people are losing trusted providers and facing confusion and anxiety as they transition to new services. This isn’t just speculation—it’s happening. Stories of clients seeing a different worker every visit or services not being delivered at all are already emerging. What this really suggests is that the system isn’t ready for this transition. The federal government’s push for reform is admirable, but the execution is leaving too many gaps.

Where Do We Go From Here?

Federal Aged Care Minister Sam Rae’s insistence that “no one will be left without support” is reassuring, but it feels hollow without concrete solutions. Continuity of care should indeed be the top priority, but it requires more than just words. It requires funding, time, and a willingness to listen to the communities most affected. Personally, I think the government needs to hit pause, reassess, and work with councils to find a middle ground. The current trajectory risks dismantling a system that, while imperfect, has served many well.

A Final Thought

This crisis isn’t just about policy—it’s about values. Are we a society that prioritizes profit over people, or do we recognize the inherent worth of every individual, regardless of age or ability? Helen Redmond’s story is a reminder that behind every policy change are real lives, real families, and real consequences. If we’re not careful, we risk creating a system that’s efficient on paper but cold in practice. And that, in my opinion, is a future none of us should accept.

Aged Care Crisis: Councils Abandon Services, What Happens Next? (2026)
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