Full Breakdown
Commonwealth Ombudsman Flags Flaws in New Aged-Care Assessment Algorithm
By Drooid · · How we work
The Contested Aged-Care Assessment Algorithm
The federal government’s Integrated Assessment Tool (IAT) will employ a classification algorithm scheduled for launch on November 1 as part of its “once in a generation” aged-care reforms. The algorithm determines the level of home-support funding an older Australian receives, replacing earlier manual assessments. Since the rollout was announced, the Ombudsman reports a surge in appeals—hundreds of people have challenged decisions, a more than five-fold increase on the previous year’s appeals volume.
Background and Legislative Context
The IAT was introduced under the Aged Care Act, which currently provides no mechanism for assessors to override algorithmic outcomes, even when clinically inappropriate. The Department of Health, Disability and Ageing has been criticised for implementing the tool without external validation or a meaningful risk assessment, despite recommendations from the Royal Commission into the “robodebt” scheme that government-run automated decision-making be transparent.
Ombudsman Findings and Criticism
The report also notes that the department failed to enforce contractual quality controls on assessors and that there is no public information explaining how the algorithm converts inputs into outcomes, rendering the IAT a “technological black box.” Anderson warned that “a reasonable person would, in my view, lack confidence that the system is in fact fair and consistent.”
Government Response
Health and Ageing Minister Mark Butler and Aged-Care Minister Sam Rae issued a statement saying the government will consider the ombudsman’s report and is already acting on many recommendations to improve transparency and reliability. The department has accepted a review of the Aged Care Act and pledged a public-consultation-informed amendment. It also introduced an “escalation pathway” for exceptional-circumstance appeals, though the Ombudsman expressed doubt that this will allow assessors to correct clinically inappropriate decisions.
What’s Next
The department has commissioned a comprehensive review of the assessment system, with a report due in the first half of next year. The review is expected to address legal defects, inconsistencies and the lack of an override mechanism.
Verbatim Quotes
- “A reasonable person would, in my view, lack confidence that the system is in fact fair and consistent.” — Mr Anderson
- “The department did not, and may still not, understand key components of the legal framework it created, nor did it understand what legal framework it was meant to create,” — Mr Anderson
- “The government will consider the ombudsman's report carefully as we continue to improve our aged care system, including the assessments system.” — Aged Care, minister
- “It’s very concerning that the department was telling people this system was going to operate in a particular way, showing them versions of that system, only to change it,” — Commonwealth Ombudsman Iain Anderson