New Expert Group Appointed to Overhaul NZ’s Aged Care System by 2026

Minister Costello says the advisory group will play a crucial role in shaping future policy.

Associate Health Minister Casey Costello has announced the establishment of a new Aged Care Ministerial Advisory Group, tasked with delivering expert recommendations to reform New Zealand’s ageing and increasingly pressured aged care system. The group will provide independent advice to the Government on structural, financial, and regulatory changes needed to ensure sustainable and accessible care for older New Zealanders.

Minister Costello says the advisory group will play a crucial role in shaping future policy.

“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.”

A Broad Range of Expertise to Inform System Overhaul

The group is made up of 10 members with deep experience across aged residential care, primary care, home and community support, and funding and regulatory frameworks. Their combined expertise reflects the complex challenges the sector faces, including workforce shortages, ageing infrastructure, rising demand, and financial pressures on providers.

Former Health Minister David Cunliffe—now chair of the Selwyn Foundation, a major faith-based aged care provider—has been appointed Chair of the group. His leadership background in both public service and aged care governance positions him to guide discussions on modernising the system.

The members of the advisory group are:

• Brien Cree

• Shelley Cunningham

• Suzanne Dvorak

• Dr Richard Lowe

• Murray Penman

• Mike Peters

• Max Robins

• Allan Sargeant

• Helen Watson

Three Key Areas of Reform to Be Considered

The Group has been tasked with producing a comprehensive set of recommendations covering three major policy areas:

1. A Sustainable Funding ModelThe group will examine how to ensure a stable supply of aged-care beds—particularly standard-level care—and what long-term funding settings are required to keep providers financially viable as demand grows.

2. Fair Cost-Sharing Between Government and IndividualsThis includes assessing how care costs should be reasonably divided between older people receiving services and the Government, with consideration of equity, affordability, and demographic change.

3. Streamlined Contracting and Regulatory SettingsThe aim is to reduce unnecessary red tape, promote innovation, improve service integration across health and disability services, and create more flexible contracting arrangements that support cost-effective care delivery.

Recommendations Expected by Mid-2026

The advisory group will deliver its findings and recommendations to Ministers by mid-2026, informing long-term policy decisions that may shape the sector for future decades.

Minister Costello says addressing these issues is urgent and will require political cooperation.

“New Zealand has very good aged care, provided by dedicated people. 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.”

She emphasised that the advisory group must operate independently due to the scale and significance of the issues at hand.

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

The Government has committed to a bipartisan approach, as outlined in the National–NZ First Coalition Agreement, reflecting the long-term nature of aged care reform and the need for cross-party stability.