Home care trends in 2025

2025 is shaping up to be a transformative year for home care in Australia.  

The introduction of Support at Home is set to redefine the sector, prompting widespread shifts in business practices for nearly every organisation in the industry. This legislation is expected to act as a catalyst for significant change, reshaping the way care is delivered and managed across the country. 

The sector also continues to face pressure from an ageing population and staff shortages, requiring providers to develop unique solutions to ensure adequate care can be provided. 

To understand what lies ahead, we speak to CEO and Founder of AlayaCare, Adrian Schauer, and General Manager, Annette Hili. Drawing on their insights, alongside current data and trends in the sector, we’ve compiled a forecast of what 2025 might hold for home care. 

So, what are some of the key trends emerging in this rapidly evolving space this year? 

Support at Home will redefine care

“It’s impossible to talk about trends in home care without pointing out the impact that Support at Home will have on the sector,” says Annette. “We are already seeing the impacts that these changes are having on providers, and by July 1st this year, the entire home care landscape will change.” 

We know that the Support at Home program is set to redefine how home care is delivered, creating new challenges and opportunities for providers.  

Some of the significant impacts on home care providers in 2025 include:  

• Provider registration: Providers will be classified into registration categories based on risk and service characteristics. This structured approach is likely to increase administrative oversight and compliance requirements, urging providers to strengthen governance and streamline operational processes. 
• Care management funding: Under the program, 10% of participants’ budgets will be allocated to care management through a pooled funding model. This shift will require providers to carefully balance resources, ensuring funds are efficiently allocated to meet clients’ dynamic needs.  

What does this mean for home care providers in 2025? 

• Greater focus on compliance and administrative efficiency to meet new registration requirements 
• Investment in financial tools and technology to manage pooled funding and adapt to evolving client needs 
• Emphasis on personalised care and outcomes to stand out in a competitive, regulated market 

Artificial Intelligence (AI) will be even more integrated 

It likely won’t surprise many to read that AI will be a significant trend in 2025. 

But this year we will see adoption increase dramatically as the rate of technological development escalates, and the need to streamline and automate processes intensifies.  

In home care, this need will be driven mainly by the fact that only 10% of participants’ budgets will be allocated to care management through a pooled funding model. This will require providers to look at ways to reduce the amount of hours allocated to direct case management through new technology, such as through AI agents (AI systems that act autonomously to proactively identify opportunities for improvement and take action without constant human input). 

Annette explains that most Australian home care providers will look to adopt AI in 2025: “We’re going to see a lot more desire for people to look at ways to utilise Artificial Intelligence to cut out some of those repetitive tasks. Our clients are going to be wanting us as vendors to be coming up with ways to do that in a way that’s practical, secure and safe because of the important information that they have.”  

Adrian agrees, “What I predict is you’re going to have AI integration and other types of tools help our customers be more efficient in how they deliver care. And enable a better experience, not just for their clients but for their care workers as well.” 

This is mirrored in the numbers. Global AI in healthcare is expected to reach $67.4 billion USD by 2027, growing at a compound annual growth rate of 46%. 

How will this look in home care in 2025? 

• Optimising operations: AI will be used to automate shifts and scheduling, optimise routes for home care workers and summarise data sets 
• Improving clinical outcomes: AI algorithms are being used to help predict and prevent adverse outcomes for clients 

More focus on data and security 

With the rapid adoption of new technology in home care, the need to address data security is becoming increasingly urgent.  

While advancements in new technology promise incredible benefits, they also open new vulnerabilities that bad actors could exploit.  

The Notifiable Data Breaches Report for Australia (January to June 2024) highlights the stakes: 

• The healthcare sector reported the highest number of data breaches 
• Breaches increased by 9% compared to the previous reporting period 
• Phishing remained the most common source of breaches 

These figures are daunting, but aren’t an indication we should shy from innovation. In fact, the opposite is true.  

As society advances, operating without integrating advanced technologies will be nearly impossible. With this progress comes the critical responsibility to ensure the privacy and security of users and clients. 

“We are fully leaning into the power of AI and new technology to deliver change in the home care space. But with this comes a huge responsibility from us as software providers, as well as anyone using this technology, to maintain data security and integrity,” says Adrian. 

“This is why security is ingrained in every aspect of the system, with security automation tools directly integrated into the CI/CD pipeline and infrastructure,” he continues. 

In 2025, as technological advancements accelerate, the focus on robust data security measures will become more pronounced. 

How will this look in home care in 2025? 

• Increased use of encryption to secure data transmission 
• Comprehensive staff training, addressing human error as the weakest link in security 
• A shift to secure, encrypted platforms for managing sensitive information 

Prioritising sustainability 

Sustainability is emerging as a critical focus for the home care sector in 2025. Highlighted at the 2024 Aged & Community Care Providers Association (ACCPA) conference, sustainability now encompasses environmental goals and financial stability – with financial stability being a dedicated program stream at the event. 

The rising operational costs facing businesses make sustainable practices more essential than ever.  

“Increasingly, we’re being told about the difficulties in running a business as operational costs put pressure on providers’ bottom lines,” explains Adrian. 

This is only set to intensify with the Support at Home changes. The 2024 11 Stewart Brown Aged Care Financial Performance Survey (June 2024), suggests: 

“When the 10% cap implements, home care providers are estimated to lose $5.51 per client per day care (pcd) management revenue ($14.60 pcd moving to $9.09 pcd) which will mean that the margin on service delivery (unit cost) will need to increase to 40.3% from the current 12.2% to maintain the present operating surplus.” 

To navigate these challenges, providers will look for solutions that ensure operational efficiency and sustainability, enabling them to remain resilient well beyond 2025. 

How will this look in home care in 2025? 

• Optimising resource management to reduce waste and control costs 
• Leveraging technology to streamline processes and improve efficiency 
• Diversifying revenue streams to create financial stability 
• Focusing on staff and client satisfaction to ensure retention and long-term success 

Shift to digital platforms 

As staffing shortages and operational challenges persist, home care providers are increasingly embracing digital platforms—a trend poised to accelerate with the rollout of the 2025 Support at Home program. These technologies offer practical solutions to enhance efficiency, reduce costs, and improve care delivery for clients. 

“In the last year in Australia, we have seen a huge shift in home care providers adopting digital platforms to support their care delivery. It’s really exciting – there’s so many opportunities, and it’s great to see providers leaning into new opportunities around technology,” says Annette. 

Digital platforms are set to transform home care in 2025 by addressing key pain points such as travel time, administrative burdens, and continuity of care. 

These platforms will be used to support: 

• Automation of documentation: Leveraging AI-based software to streamline administrative tasks, enabling care workers to focus more on client interactions.  
• Remote patient monitoring: Allowing care providers to track clients’ health in real time, reducing the need for in-person visits while ensuring proactive intervention. 
• Increased use of telehealth: Expanding virtual consultations for clients, offering convenience while reducing travel requirements for care workers. 

What will this mean for home care providers in 2025? 

• Enhanced efficiency: Providers will optimise care worker schedules and reduce travel times, allowing them to serve more clients effectively 
• Improved scalability: Automation and digital tools will help providers manage increasing demand without a proportional increase in staffing 
• Better client outcomes: Real-time monitoring and telehealth will enable faster interventions, leading to more personalised and responsive care 
• Competitive advantage: Early adopters of advanced platforms will be better positioned to adapt to the Support at Home program and stand out in a crowded market 

The new year promises considerable challenges and even more opportunities for those working in home care. 

It’s already clear that the ability to adapt and embrace change will be critical for all providers who aim to remain resilient and deliver exceptional care in 2025. 

—— 

Want to learn how AlayaCare can help your organisation navigate home care changes in 2025? Reach out to our dedicated Australian team.