Government launches aged-care overhaul with new advisory group

Tuesday, 28 October 2025

The Government has announced a major step toward reforming New Zealand’s aged care system, including the creation of a Ministerial Advisory Group to recommend changes to the funding model.

Associate Health Minister Casey Costello and Health Minister Simeon Brown said the integrated approach aimed to improve health outcomes for the country’s 900,000 people aged over 65 and create a more sustainable, accessible aged care system.

“Improving the lives of older people is a priority for the coalition Government,” Costello said.

While aged care in New Zealand was generally of a high standard, the current funding model was outdated and fragmented.

“Essentially, our aged care model is out of date and piecemeal change isn’t the solution,” she said. “We want a system that provides the right type of care in the right place – and that allows people to transition between these types of care, that’s easier to navigate and access, that’s fair, and that is sustainable and will endure as our population ages.”

The advisory group will deliver an independent report by mid-2026, with changes to the funding model expected to be implemented in 2027. It will examine three key areas: how to support a sustainable supply of aged care beds, how costs should be shared between individuals and the Government, and how to better integrate aged care with health and disability services.

“Ensuring a sustainable supply of standard aged care beds is critical to ensuring all New Zealanders have the care they need as they age,” Brown said.

The group will be appointed through the standard Cabinet process and supported by the Ministry of Health. Its work will be informed by Health New Zealand’s recent review and the upcoming Health select committee inquiry into aged care.

Costello said the Government was committed to a bipartisan approach and noted that funding to the sector had increased by $270 million over the past two years.

“The funding increases are aimed at relieving pressure on the sector and improving care services for older New Zealanders while we work towards the longer-term reform needed to better help people age well,” she said.