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More than a year has passed since the introduction of the Aged Care Industry Labour Agreement (ACILA) by the Australian Government in May 2023. The ACILA was introduced to address the growing workforce shortage in the aged care sector (Australian Government, 2023). The ACILA aimed to streamline the recruitment of qualified direct care workers from overseas, giving aged care providers access to a broader talent pool where local workers were unavailable. This article discusses the purpose of the ACILA and its impact on the industry, one year on. 

 

Australia's aged care sector is grappling with a severe workforce crisis that threatens to undermine the quality of care for the nation's ageing population. According to recent reports by the Committee for Economic Development of Australia (CEDA), Australia is facing a shortage of at least 110,000 direct aged-care workers within the next decade unless urgent action is taken to boost the workforce (CEDA, 2021; 2022a; 2023). These reports assert that the shortage will balloon to more than 400,000 workers by 2050 unless we take dramatic action now. 

 

The causes of these shortages include: (i) an ageing population, with people living longer, with more people requiring care; (ii) high levels of attrition;  (iii) growth of disability care sector, creating other career opportunities for nurses and carers; and (iv) strict migration pathways for carers, prior to the new reforms. This shortage is exacerbated by high staff turnover rates, with estimates suggesting that nearly one in four direct care workers leave the sector each year (CEDA, 2022a). CEDA has also suggested that smaller than required levels of migration, coupled with high levels of attrition in the sector are increasing existing shortages (CEDA 2022b). 

 

The impact of this workforce gap is already being felt, with reports of aged care facilities struggling to maintain adequate staffing levels, leading to increased workloads, burnout, and potential compromises in the standard of care provided to residents (Thwaites Et al., 2023). Addressing this critical workforce shortage has become a top priority for the aged care industry and policymakers alike, prompting initiatives like the ACILA to attract and retain skilled workers from overseas.

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Adoption and Utilisation of the ACILA​

In order to take advantage of the ACILA, aged care providers are required to:

  1. Enter into an MoU with the relevant industry union(s),

  2. Submit the labour agreement request to the Department of Home Affairs,

  3. Await a response from DHA (Department of Home Affairs, 2024a).

 

According to data from the Department of Home Affairs, as of December 2024, 107 aged care providers have signed the ACILA (Department of Home Affairs, 2024b), representing approximately 3.4% of the 3,160 registered organisations delivering aged care services across Australia (GEN Aged Care Data, 2024). This uptake suggests a minimal portion of the industry has determined the ACILA in its current state is an appropriate tool to assist in solving workforce shortages at their facilities. 

 

The graph below (based on data from the Department of Home Affairs) highlights that the number of providers signing on to the ACILA over time is increasing at a steady rate.

Adoption of Aged Care Indsutry Labour Agreement

Image 1: Adoption of ACILA over time

However, the number of workers brought in under the ACILA remains relatively modest. While hundreds of workers have been granted visas under the ACILA, the majority of them have been on-shore in Australia at the time of their visa application. It was reported in August 2024 that:

 

“Only 101 visas have been granted to offshore applicants according to the Department of Home Affairs, and 594 visas have been granted to applicants already in Australia.” (The Weekly Source, 2024).

 

While the ACILA has provided some relief, the aged care workforce shortage remains a pressing issue. Industry experts estimate that an additional 35,000 workers are needed annually to meet the growing demand for aged care services in Australia (ACCPA, 2024). The modest uptake of the ACILA and the relatively small number of workers recruited through the agreement thus far suggest that it has not yet significantly alleviated the workforce crisis. Of course, these figures are likely to increase the longer the ACILA remains in place. However, the fact that only slightly more than 100 workers have successfully applied for their visa (from abroad) under the ACILA represents a small fraction of the estimated 366,000 workers currently employed in the aged care sector (Isherwood et al., 2018).

 

For those who have adopted the ACILA, many speak highly of the benefits. Emerson Migration Law noted that: "The ACILA has been well-received. Providers speak particularly favourably about processing timeframes, as well as the certainty of direct permanent residence pathways. Both have assisted greatly in attracting and retaining talented workers.”

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The current trends are a positive sign, indicating that there are a growing number of aged care providers signing onto the ACILA, providing a mechanism for them to hire carers from abroad. The framework is now in place for them to source and hire international candidates. 

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Obstacles to Broader Adoption​

Several factors may be hindering the broader adoption of the ACILA by aged care providers. These include:

  • Perceived Administrative Burden: Some providers have expressed concerns about the administrative complexity and costs associated with the ACILA, which may deter smaller organisations from participating. The perceived burdens also include the internal costs and resources required for liaising with unions for signing on with the required MOUs.

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In setting out the complexities of the process, Emerson Migration Law note that: “It is true that making ACILA requests carries a level of complexity. Firstly, each organisation must be able to clearly articulate its specific need for ACILA access. This must include a detailed account for its workforce and recruitment efforts. Secondly, the requested nomination ceiling must be proportionate and reasonable, under the circumstances. For this reason, some providers are wary of the cost and intricacy associated with this process”

 

  • Language and Cultural Barriers: While the ACILA aims to allow recruitment of qualified international workers, language and cultural differences can still pose challenges in providing culturally appropriate care, particularly for residents from diverse backgrounds.

  • Accessing Quality International Staff: Some providers have put hiring international staff in the too-hard-basket because of the perception that sourcing quality staff from abroad is too difficult. However, many providers are bucking this trend and successfully onboarding world-class talent from abroad, and retaining this staff for long periods of time. With the right advice and partners, hiring international staff need not be complex and expensive.

  • Funding and Resource Constraints: Aged care providers often operate on tight budgets, which may limit their ability to invest in international recruitment and support programs for overseas workers. However, many providers have found that there is a strong business case for hiring international talent, as compared to alternatives such as high agency costs, FIFO costs etc.

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Moving Forward: Actionable Steps​

To maximise the potential of the ACILA and address the ongoing workforce challenges in the aged care sector, the following actionable steps could be considered:

  • Streamline Administrative Processes: Simplifying the application and reporting processes for the ACILA could encourage broader adoption, particularly among smaller aged care providers. This may include simplifying (and relaxing) negotiation requirements with unions, and streamlining skills assessment and visa processes further.

  • Invest in Language and Cultural Support: Providing comprehensive language training and cultural competency programs for both international workers and existing staff could improve communication, understanding, and the delivery of culturally appropriate care.

  • Enhance Retention Strategies: Offering competitive remuneration, professional development opportunities, and supportive work environments could help retain international workers in the aged care sector.

  • Increase Funding and Resources: Allocating additional funding and resources to support international recruitment efforts, training programs, and workforce development initiatives could facilitate the successful integration of overseas workers. There is a strong business case in reallocating funding and resources to sourcing, recruiting and onboarding quality international talent. Quality staff who are carefully selected and properly onboarded are more likely to stay, and will quickly start to save providers money, compared to other more expensive alternatives.

  • Promote Industry Collaboration: Encouraging collaboration and knowledge-sharing among aged care providers could foster best practices in international recruitment, onboarding, and retention strategies.

  • Address Institutional and Systemic Issues: ACILA  is one piece of a very complex puzzle. There is no one solution for solving workforce shortages, and policy makers need to make sure that the underlying system issues in the aged care workforce are addressed. These include: funding models and salaries, working conditions, workforce planning, domestic education pipelines, and learning and professional development programs.

  • Finding the Right Partners: There are plenty of stakeholders in the international talent ecosystem. It is important that providers conduct their due diligence and look to work with partners who can assist with sourcing, vetting, training and onboarding of quality international talent. It is also important to seek independent legal advice on appropriate visas and talent pathways for international staff.

 

As Australia's population continues to age and the demand for aged care services grows, addressing the workforce shortage remains a critical priority. The Aged Care Industry Labour Agreement represents a valuable initiative, but its true potential can only be realised through a comprehensive and collaborative approach that addresses the multifaceted challenges facing the sector.

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References

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WRK4CE acknowledges the Traditional Custodians of the lands where we live, learn and work. We pay our respect to Elders past and present and extend that respect to all Aboriginal and Torres Strait Islander peoples today.

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WRK4CE was founded with a desire to contribute to the current skills shortage crisis in Aged Care, offering providers the chance to more quickly and easily find and hire international talent.
 

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