In the current scenario, Australia’s healthcare system is facing a big challenge. As more Australians get older, there is a much higher need for nurses and aged care workers. As per a report by the Australian Institute of Health & Welfare (2024), it can be expected that more than 4.2 million Australians are now 65 or older, and they need more healthcare. Additionally, a recent news article by the University of Sydney, the increasing ageing population is projected to elevate health expenditures to over AUD$270 billion (USD$174 billion) by 2035, assuming the cost of care per elderly individual remains constant.
From my experience working in the staffing healthcare workforce, and now as Head of People & Culture at HCI Australia, I firmly believe that there is a huge need for a skilled workforce that can be helpful in meeting this surge in patient demands across Australia. Currently, Australia does not have enough healthcare professionals, especially nurses and aged care workers. As per a report by Tunstall Healthcare (2025), it is expected that by 2025, there will be a shortage of 100,000 nurses, which could grow to 123,000 by 2030. Moreover, it is also argued that the aged care sector needs 17,000 more workers every year just to keep up with current care standards. Additionally, the problem is even worse in rural and remote areas, where there are up to 50% fewer healthcare workers than in cities.
The Challenge: Not Enough Healthcare Workers
According to the Victorian Skills Plan (2022), there are several key factors that are forcing this surge in demand. To be more precise, several reasons, such as workforce burnout, attrition, and policy and immigration challenges, remain the key factors that showcase the key reasons behind this healthcare workforce shortage in Australia. While this problem is persistent in all states across Australia, the Victorian Skills Plan (2025) states that the nearby health care and social assistance industry employs the most workers in Victoria and is expected to account for 86,500 new workers, almost a quarter of new worker growth over 2024-27. Recent reports from Labour Market Insights states that within the health care and social assistance, it is projected that employment projections are expected to be reach 25.9% on a 10-Year change period within this industry itself.
Additional Reasons Behind the Healthcare Workforce Shortage
Burnout: Many healthcare workers feel tired and stressed, especially after COVID-19, and some are leaving their jobs. Not enough training: There are not enough places in nursing schools, and it takes a long time to become qualified. Location issues: Fewer people want to work in remote or less resourced areas.
Immigration and policy: Changes in immigration rules and global competition make it harder to bring in skilled workers from overseas.
International Recruitment and Immigration
Australia has always relied on skilled workers from other countries to fill healthcare jobs. Recently, almost 43,000 health professionals from overseas have joined the workforce. The government has made it easier to get visas and offers bonuses for working in regional areas. For example, New South Wales offers $20,000, and South Australia offers $15,000 to attract professionals to places that need them the most. But bringing in workers from overseas is not enough. Australia also needs to train more local people for healthcare jobs.
Improving Education and Training
At HCI Australia, we have 1,000 higher education students and over 2,000 Diploma of Nursing students, with 100 nurse educators and 40 higher education lecturers. However, across the country, the training system is not keeping up with what the healthcare sector needs, especially in aged care.
What should change?
More placements in aged care: Most training happens in hospitals, not aged care. More students should get experience in aged care, so they are ready and interested in these jobs. Better partnerships: Higher Education Institutions (Universities) and aged care providers should work together to improve training and research.
Use data for planning: Collecting national data on student placements will help match training to where workers are needed. Fee-free and subsidised courses: Making training cheaper or free helps more people join and upskill in healthcare.
Supporting and Keeping Workers
Aged care work is hard—physically and emotionally. Many workers feel stressed and leave their jobs. To keep staff happy and healthy, we need:
Supportive leadership: Good managers and mentors help staff deal with challenges.
Career growth: Opportunities to learn new skills and get promoted keep people motivated.
Flexible work: Options like part-time work or flexible hours help with work–life balance.
Mental health support: Access to counselling and stress management is important for staff well-being.
Policy and National Action
To build a strong healthcare workforce for the future, I recommend:
Teaching aged care facilities: Like teaching hospitals, these would combine training, research, and care in aged care settings.
Technology training: Teaching staff to use new digital health tools will make care better and more efficient.
Targeted immigration: Continue to improve skilled migration for healthcare, especially for regional and aged care jobs. Better planning: Governments, education providers, and healthcare organisations must work together to plan for future needs.
Australia’s healthcare system needs urgent action. By improving training, supporting staff, and welcoming skilled workers from overseas, we can make sure older Australians get the care they need. At HCI Australia, we are committed to these solutions, helping to train and support the next generation of healthcare professionals.