The care and support economy—the provision of paid care and support—is one of the fastest growing parts of the Australian economy. There is enormous projected demand for care and support services across aged care, disability support, veterans’ care and early childhood education and care (ECEC) sectors.
Australian Government spending in these sectors is projected to rise from around $60bn in 2021 22 to more than $110bn by 2026-27.1 But there’s a challenge. Each of these sectors faces workforce shortages and other challenges that jeopardise access to these essential services.
Funding high-quality care and support provision is an investment in social infrastructure. It provides long-term benefits that go well beyond direct users of these paid services. Care and support services enable people with care and support needs (and their families and carers) to participate in the workforce and society.
The care and support economy has a two-fold impact on women’s economic equality – women make up the majority of workers in these sectors, and are more likely to provide unpaid care when formal services are not available.
In recent years, reform of the care and support system has largely been reactive, driven by crisis and Royal Commissions. A more proactive approach will provide a better quality of life for Australians. It will also provide broad social benefits and drive economic prosperity by ensuring the sector provides high quality care, delivered by workers with decent jobs, and by unlocking productivity growth.
This Strategy is the start of a conversation about Australians’ vision for our care and support system. It complements the substantial work already being undertaken in each of the aged care, disability support, veterans’ care and ECEC sectors, by developing whole-of-system solutions.2
Harnessing opportunities in the care and support economy will require a long-term program of work. A Roadmap indicates the key pieces of work needed to reach the objectives outlined in these pages. The Roadmap is a live document that will be updated to reflect achievements and emerging priorities.
Sitting underneath this Strategy will be a series of Action Plans which will outline practical steps towards achieving the Strategy’s objectives. Action Plans will be released iteratively, in collaboration with state and territory governments where appropriate.
- PM&C analysis of Budget papers Return to footnote 1 ↩
- When these sectors are referred to as a whole, they are referred to as a system of care and support. Return to footnote 2 ↩