It is widely recognised that there are major problems in the quality of aged care, especially in residential aged care. There are many reasons for this, but there is little persuasive evidence that a policy to preference direct employment would improve outcomes. It could indeed worsen outcomes.

Direct employment is already by far the most common mode of employment in the aged care sector.

• Agency workers and independent contractors account for less than 4 per cent of the care workforce (personal care workers, nurses and allied health workers).
• The scope for any gains from a policy to preference direct employment therefore needs to be kept in perspective.

In the context of the chronic staff shortages facing the sector, a policy to restrict agency work is not a realistic option.

The use of independent contractors in home care — often through digital care platforms that connect workers directly with consumers — is growing from a very small base as more older Australians express a preference to self-manage their government-funded care package.

Instead of focusing on employment models per se, the federal government should expedite the suite of reforms to increase safety and quality that are currently planned or underway.