Uniting Care, a major provider of aged care services in Australia, has announced plans to cut approximately 120 jobs from its Blue Care community services division in Queensland.
This decision comes as the organisation braces for the introduction of the new Aged Care Act, now set to take effect on 1 November 2025, which will bring significant changes to the delivery of aged care services for elderly and vulnerable Australians.
The job reductions follow a challenging period for Uniting Care, which saw about 340 positions eliminated just over a year ago.
According to financial records, the organisation reported a loss of nearly $95 million in the last financial year, a sharp increase from the $53 million deficit recorded the year prior.
Maria McLaughlin-Rolfe, group executive at Uniting Care, explained the reasoning behind the cuts in a statement reported by the ABC.
“Regrettably, this change and the impact of reform mean some roles are no longer viable or required,” she said. However, she assured that frontline care staff would not be affected by this round of redundancies, with the focus instead on achieving operational sustainability ahead of the upcoming reforms.
The new Aged Care Act, passed with bipartisan support in 2024, will usher in the Support at Home program, replacing the current home care packages.
These packages provide essential services such as in-home nursing, cleaning, and gardening to help elderly Queenslanders remain independent. Under the new model, access to government support will involve stricter means testing.
Full pensioners will be required to contribute 5 per cent of the costs, while self-funded retirees may face charges of up to 50 per cent.
The reforms, originally slated for implementation on 1 July 2025, were delayed to November to allow for a smoother transition. Federal Health Minister Mark Butler told the ABC that the postponement would ensure “all of the systems are in place to deliver a smooth transition to the new laws.”
The changes are causing concern across the sector, particularly in regional Queensland, where alternatives to Blue Care’s services are limited.
Debra Burden, chief executive of Townsville-based disability support not-for-profit Selectability, highlighted the challenges ahead. “The hard thing will be for the sector to transition from the previous model of care where they had more choice and control than the recipients to the new model,” she told the ABC.
She expressed worry about the impact on regional communities, noting that Blue Care is a critical provider across much of Queensland. “I just can’t imagine an aged care sector in Queensland without Blue Care,” she added.
