"It's an exciting time to be part of the health and aged care sector"

Logicalis Australia and Interactive are optimistic about opportunities this week’s federal budget creates to modernise and improve aged care in Australia.

Health and aged care came out on top in terms of technology spending in this week’s federal budget, with iTnews reporting a total of $320 million has been allocated across My Health Record, the Department of Health and Aged Care and the Aged Care Quality and Safety Commission.

The big spending item was the $229 million allocated to further modernise the My Health Record platform, building on the $429 million, two-year investment that expires in June and was unveiled in 2023’s Budget. 

The Department of Health and Aged Care received just over $50 million to continue the implementation of the single assessment system, designed to collect better information to ensure service recommendations and referrals are tailored to each person’s needs. 

This money will also be put towards ‘the staged digital implementation’ of the Aged Care Act 2024, with a further $37.8 million made available to the Aged Care Quality and Safety Commission to support the Act’s digital implementation. 

Underpinning the aged care reforms, significant technology and platform maintenance and enhancements will also be funded – to the tune of $1.4 billion - to ensure critical aged care digital systems will remain contemporary and comply with legislation. 

"Decisive moment"

Logicalis Australia’s acting GM Lisa Fortey saw the budget spending having significant implications.

"Australia’s investment in digital transformation across the health and aged care sectors marks a decisive moment, particularly in aged care, where the Government’s $1.4 billion commitment signals a shift towards more connected, data-informed, and patient-centric models of care,” Fortey said.

“While historically the health sector hasn’t adopted digital transformation at the same pace as some other industries, that slower uptake now represents a significant advantage,” Fortey said.  

“Providers can leapfrog legacy challenges by adopting proven technologies, such as cloud infrastructure, AI-enabled workflow tools, and integrated telehealth platforms, right from the start. There’s a real opportunity to modernise systems in a way that directly supports better outcomes for patients, aged care residents, and the workforce. “ 

According to Fortey, technology has a critical role to play in alleviating pressure created by workforce shortages that continue to challenge the sector, particularly in clinical and support roles.

“From digital rostering and virtual care to AI-supported diagnostics and administrative automation, the sector can tap into innovation to free up resources and improve care delivery,” she told us. 

“Looking ahead to 2025 and beyond, collaboration will be key. Strong partnerships between technology experts, healthcare providers, and government will be essential in building future-ready systems that are secure, scalable, and responsive to community needs.  

“It’s an exciting time to be part of the health and aged care sector. Digital transformation is no longer a future state, but a present-day opportunity.” 

Interactive building on specialisation

Interactive CEO Alexandra Coates said the 2025 budget’s focus on health and aged care IT modernisation signalled a strong push toward digital transformation in healthcare.  

“This is good news for tech firms like Interactive with a strong purpose to continue to focus on the positive impact the tech sector can have on Australians,” she said. 

“Transforming the aged care sector will help provide equitable services to the 1.2 million Australians that use the system. The fundamental ambition is to drive connection for older Australians and free up more time for those that work in the industry to provide a greater quality of care, while making their jobs more enjoyable.   

“Our job as the tech sector is to meet that bold ambition with stable, scalable, user intuitive and highly secure platforms. We are looking forward to being part of that journey building on our existing specialisation in the sector,” Coates said.

Coates said that the aged care and health sector cannot embark on this transformation alone - the technology industry must meet it at the intersection of technology and care. 

“The third cog to this wheel is the need for well thought through and executed change management strategy to land this new digital era within this sector,” she told us. 

“At Interactive, we're thinking about how remote technologies can redefine the boundaries of aged care. How AI, and specifically agents, can help the aged population navigate their day-to-day easier, and, how we work with others in the industry to provide digital platforms to access all the data needed to make the lives of those working in the sector easier.  

“Of course, all of this must have security at the forefront given the nature of the data that is being stored." 

All this, of course, is provided the Labour government remains in power after the election on May 3.