# New Zealand aged care system reform > Live situation record from CLSTR: https://clstr.news/situations/new-zealand-aged-care-system-reform > Updated: 2026-08-26T03:24:49.000Z. Sources: 2. Developments: 2. The New Zealand government is addressing systemic challenges in its aged care sector following the release of a Ministerial Advisory Group (MAG) report titled ‘A place to grow old, securing the future of aged care’. The report offered 40 recommendations to create a more sustainable system, including reforms to funding models and increased access to home-based care. While advocacy groups welcomed the focus on home-based support, they raised concerns regarding potential financial burdens on seniors. Subsequent developments highlight a growing crisis involving capacity and workforce shortages. Projections indicate the population aged 65 or over will reach 1.3 million by 2040, potentially leading to a shortfall of over 9,000 residential care beds within ten years. This capacity issue is compounded by a shrinking workforce, as many nursing and health students are reportedly opting out of aged care careers. Additionally, the Aged Care Association has criticized recent procurement models, arguing they may reduce the capacity for in-home and community support. ## Timeline ### 2026-08-26: New Zealand aged care faces workforce and capacity crisis New Zealand faces a potential shortfall of 9,000 aged care beds by 2040 due to workforce shortages and concerns over contracting models for in-home care providers. 2 sources. https://clstr.news/cluster/new-zealand-aged-care-faces-workforce-and-capacity-crisis ### 2026-08-16: New Zealand receives advisory report on aged care reform New Zealand's Ministerial Advisory Group has released a report with 40 recommendations to reform the aged care system, focusing on integrated services, home-based care, and sustainable funding models. 4 sources. https://clstr.news/cluster/new-zealand-aged-care-report-calls-for-major-structural-reform --- Cite as: New Zealand aged care system reform. CLSTR, https://clstr.news/situations/new-zealand-aged-care-system-reform