Aged care governance in times of change: A call to action for Directors

By Sean Rooney, Principal at STR Advisory and former CEO of Leading Age Services Australia

Since stepping down as CEO of LASA in 2022, I’ve had time to reflect on what really drives success in aged care. One lesson stands out: change is never just about compliance, it is about leadership, culture and strategy.

As the new Aged Care Act approaches in July 2025, Boards face not just another regulatory hurdle but a fundamental shift in how aged care is governed. During my time at LASA I saw Directors navigate ACFI cuts, a Royal Commission, COVID-19, workforce shortages and relentless financial pressure. Their dedication was extraordinary, but the changes ahead demand an even deeper response.

The Government has made clear that the Act “will focus on older people, rather than aged care providers,” with stricter oversight and stronger consumer protections. The Australian Institute of Company Directors has echoed this, stating that reforms “have significant implications for Boards, requiring more than incremental improvement.”

This means rethinking strategy, managing expanded risks, and embedding quality and safety into the fabric of governance. Boards will need to balance day-to-day operations with reform implementation, ensure their organisations are financially and operationally prepared, and maintain community trust.

Standard Two of the revised Quality Standards now places direct responsibility on governing bodies to meet care requirements. With 43 actions, including six entirely new expectations, Directors must assure themselves that compliance frameworks are not just robust but part of a culture of transparency and accountability.

The questions for Directors are stark: Do we understand the full scope of the reforms? Are we prepared to lead transformational change? How will we meet immediate care needs while positioning for long-term sustainability?

Aged care is at the threshold of once-in-a-generation reform. Those Boards that lean into change, act decisively, and hold quality and trust at the centre will define the future of the sector. The opportunity to build a high-performing, respected and sustainable aged care system is within reach — if Boards take action now.

Originally published in Hello Leaders winter print edition. Read the full article here or contact us on [email protected] to order your print copy.