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Ombudsman Finds Aged‑Care Algorithm Lacks Safeguards and Cannot Be Overridden

The report identifies legal and validation failures that produced unfair home‑care funding decisions and prompted a limited appeals pathway plus a commissioned review.

Overview

  • The Commonwealth Ombudsman released a report on Monday that found the Integrated Assessment Tool (IAT) was implemented without proper risk assessment or external validation and that its automated decisions cannot currently be legally changed.
  • The investigation found the Department of Health, Disability and Ageing modified an original consultancy model without independent validation and gave incorrect advice to assessors that IAT outcomes could be altered before relevant laws took effect.
  • The ombudsman made 10 recommendations, including changing legislation to allow clinician overrides and a full review of the assessment law and the algorithm business rules; the department has accepted several recommendations but did not adopt the two primary calls for blanket override powers.
  • In response the government has passed limited legislation creating an 'escalation pathway' for exceptional appeals and commissioned an independent review of the assessment system and algorithm due in the first half of 2027.
  • The IAT has driven a sharp rise in complaints and appeals, affecting around 1.1 million home‑care users, and the ombudsman urged the ANAO consider an audit and called for public consultation and clearer assessor training to restore confidence.