The consumer-directed aged care (CDC) reforms are an important opportunity to showcase the benefits of market-based reforms to often sceptical and change-averse members of the public. Given the broader implications, this report warns that the CDC reforms could fall short of their promise and fail to optimise the potential outcomes due to lack of follow up and follow through reforms.

If the full benefits of choice and competition are to be realised across the sector for consumers, care workers, and tax-payers, further government action is needed to remove other regulatory barriers to maximising the provision, value, and quality of aged care services with minimal additional cost. This report therefore encourages the federal government to implement a ‘to do’ list of additional reforms to promote real choice and greater improvements in the efficiency and effectiveness of consumer-driven aged care in the new economy.