$129 million research centre to transform care delivery

Australia’s care economy has begun a decade-long transformation with the launch of the $129 million Care Economy Cooperative Research Centre (CRC).

Headquartered at La Trobe University, the Care Economy CRC is a national partnership of 56 organisations, including universities, health agencies, technology companies, and care providers. Funded by a $35 million Australian Government grant, its 10-year mission is to reshape care delivery.

This initiative coincides with recent Productivity Commission recommendations, and aims for a more efficient, integrated, and high-quality care system.

The care economy, encompassing early childhood education, disability support, mental health care, family services, and aged care, employs approximately 1.8 million Australians – over 15 per cent of the total workforce – and contributes $327 billion to the national economy annually.

Despite its scale, the sector faces significant challenges: escalating demand, complex care needs, and persistent workforce shortages, particularly in regional areas.

Care Economy CRC chair Deena Shiff said its vision is to “improve how care is delivered in Australia by enabling sector-wide transformation, boosting productivity, and delivering fit-for-purpose, people-centred solutions.”

Carmela Sergi, managing director and CEO, emphasised user-centred outcomes.

“We know that high quality care will enable us all to live independent lives and participate fully in the community and contribute to the economy,” Ms Sergi said, adding that the CRC’s research directly addresses challenges identified by care services, the workforce, and care recipients.

“This is not about developing technology for technology’s sake.

“We want to improve productivity of care services, and technology must also be adopted by the workforce to be effective.”

Three pillars of innovation

The CRC’s work is structured around three core research programs:

• Technology solutions: Led by Professor Aniruddha Desai, this program will fast-track assistive technologies such as monitoring devices, sensors, and robotics to reduce manual labour. It will also co-design mobile and desktop applications, chatbot platforms, and augmented/virtual reality interfaces to enhance care delivery and reduce administrative burdens.
• Data solutions: Professor Adam Dunn will focus on creating connected information systems that safely exchange health and care data across the sector. Leveraging artificial intelligence, these systems aim to improve outcomes, reduce administrative burden, and enhance coordination.
• Workforce innovation: This program, led by Professor Sarah Larkins, focuses on designing and training an adaptable, future-ready workforce. It will develop new care delivery models, career pathways, and enhance workplace satisfaction.

CRC Research Director Professor Irene Blackberry said the Care Economy CRC will drive improvements in quality, contemporary care.

“Today, the sector is an unwieldy and expensive mix of multiple bodies and organisations, with too much duplication and little communication between the silos,” she said. 

“But the Care Economy CRC can be a trailblazer for economic productivity and socio-economic reform, positioning Australia as a global leader in exportable care services, models, training and technologies.” 

Productivity Commission calls for reform

The CRC’s launch aligns with recommendations from the Productivity Commission’s interim report, Delivering quality care more efficiently, released in August 2025. This report identifies three key reform themes: quality and safety regulation; care service integration; and investment in preventative healthcare.

Commissioner Angela Jackson noted the current health system struggles to deliver high-quality services sustainably due to increased choice and a siloed approach.

“Our proposed reforms seek to break through government’s siloed approach to decision-making and lift national productivity by improving the quality and efficiency of care services,” she said.

The Commission’s recommendations include:

• Unified regulation and workforce mobility: Greater alignment in quality and safety regulation across the care economy, starting with aged care, the National Disability Insurance Scheme (NDIS), and veterans’ care services. This includes a national screening process for workers, singular practice and quality standards, and consistent regulation of artificial intelligence, reporting, and data handling. Commissioner Martin Stokie noted fragmented regulation “reduces productivity, heightens the risk of harms, limits access to care and creates unnecessary burdens for care providers.”
• Integrated care services: Increasing integration through ‘collaborative commissioning,’ where organisations plan, procure, and evaluate services for local communities. This involves establishing governance and funding arrangements between Local Hospital Networks (LHNs), Primary Health Networks (PHNs), and Aboriginal Community Controlled Health Organisations (ACCHOs).
• The power of prevention: Establishing a National Prevention Investment Framework to channel federal funding into preventative health programs. Commissioner Alison Roberts emphasised, “Our reform proposal is about encouraging governments to invest now to save later.”

The CRC is projected to deliver over $1.4 billion in direct benefits over the next 15 years, supporting industry growth and positioning Australia as a global leader in care services.

“Care work is an essential, although often invisible contributor to Australia’s socio-economic growth, and this has to change,” Ms Sergi said.