New Aged Care Advisory Group Appointed to Reform NZ's Sustainable Care System

Associate Health Minister Casey Costello has today announced appointments to the Aged Care Ministerial Advisory Group, to provide expert advice on long-term reform of the aged care system.

This group will identify the changes needed to the aged care funding model, in order to build a sustainable system and one that is easier for people to access and navigate, Ms Costello says.

The group comprises 10 members who have specialist knowledge across aged care and primary care, home and community support services, aged residential care, and funding models.

Former Minister of Health David Cunliffe, who is currently the chair of the faith-based aged care provider Selwyn Foundation, has been appointed Chair of the Group.

The other members are: Brien Cree; Shelley Cunningham; Suzanne Dvorak; Dr Richard Lowe; Murray Penman; Mike Peters; Max Robins; Allan Sargeant; Helen Watson.

The Group will provide an independent report and a set of recommendations around three areas: The funding model needed to support sustainable services, particularly a sustainable supply of standard aged care beds How the costs of providing aged care could be reasonably shared between those receiving care and the Government The changes needed to contracting arrangements and regulatory settings for aged care services, to remove red tape, support cost-effective delivery of services, support service innovation, and increase cohesion and integration between aged care services, wider health services, and Disability Support Services.

The Group is expected to provide advice and recommendations to Ministers by mid-2026.

As I’ve said before, New Zealand has very good aged care, provided by dedicated people, Ms Costello says.

However, a number of reviews have found that our aged-care model is out of date. We are committed to addressing this and building a system that provides the right care in the right place, that is sustainable and will endure as our population ages.

These are significant policy issues, with major political considerations attached and that’s why an independent group is required, Ms Costello says. The goal is that the Group’s recommendations will inform any future government’s policy and funding decisions.

The Government is committed to a bipartisan approach to addressing these challenges as part of the commitment in the National-NZ First Coalition Agreement.

Note to editors: Aged Care Advisory Group Members have been appointed for a term beginning on 12 January 2026. The group is expected to have completed its work by mid-2026; however, a one-year term has been set to provide flexibility if needed.

The Group will be supported by the Ministry of Health, which will provide a secretariat and other support, and will engage with additional experts as required.

Aged Care About 115,000 older New Zealanders use aged care services annually, with about two-thirds of this number using home and community support services.

Aged care is funded by government and some private contributions, and provided privately. These include a range of charities, private businesses and listed companies.

Government spending on aged care is more than $2.5 billion annually.

Individuals in residential aged care will contribute an estimated $1.38 billion this financial year.