Tuesday, August 18, 2026

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Government weighs major aged care reforms after independent review

Aged care review

The Government is considering a major overhaul of New Zealand’s aged care system following the release of an independent report containing 40 recommendations on funding, access and the integration of services.

Associate Health Minister Casey Costello said the Ministerial Advisory Group on aged care had provided a substantial blueprint for reform as New Zealand prepares for the pressures of an ageing and growing population.

“For too long, governments have kept kicking the aged care can down the road,” Costello said. “This Government appointed the Group because we wanted ideas for reform.”

The advisory group was established to examine how aged care could be made financially sustainable, including the appropriate division of costs between taxpayers and people receiving care. It was also asked to consider how aged care could be better connected with the wider health system.



Costello said New Zealand already had good aged care services delivered by dedicated workers, but argued the underlying funding structure was no longer fit for purpose.

“The way that these services are funded is outdated and does not recognise the future investment required,” she said. “The current model is siloed and doesn’t deliver a cohesive system.”

The report proposes an integrated aged care system and makes 40 recommendations aimed at ensuring people receive appropriate care in the right setting and can move more easily between different levels and types of support.

Costello said the Government wanted a system that was easier to access and navigate, while remaining fair and financially sustainable as demand increased.

However, she said no decisions had yet been made on which recommendations would be adopted or how any reforms would be funded.

“This is a significant issue which has a real impact on peoples’ lives, personal and government finances, the sector and the wider health system. We need to make the right decisions.”

The Ministry of Health has been directed to work with other government agencies to assess the recommendations and develop advice on possible policy and funding changes.

The Government says funding for the aged care sector has increased by a combined $446 million over the past three years while longer-term reforms have been developed. This year’s funding increase for the home care sector remains under negotiation.

Image credit: Dominik Lange

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1 COMMENT

  1. An ‘independent report’ (read in house) from the Ministry of Health ministerial advisory group on aged care containing 40 recommendations on funding, access and the integration of services, chaired by David Cunliffe, a former Minister of Health? It should be referred to as just another taxpayer funded “Conflict of Interest Report” for the New Zealand Company Church Parliament.
    https://www.health.govt.nz/about-us/new-zealands-health-system/health-system-roles-and-organisations/health-committees-and-boards/aged-care-ministerial-advisory-group/members

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