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Ombudsman Finds Aged Care Assessment Algorithm Unfair and Lacking Oversight

Commonwealth Ombudsman finds the aged care Integrated Assessment Tool's algorithm unreasonable and unfair, barring assessors from overriding wrong decisions.

THE DECISION

The story in focus

The Commonwealth Ombudsman found the algorithm behind the Integrated Assessment Tool used for aged care needs assessment unreasonable and unfair, The Guardian reported. The 104-page investigation, triggered in April by public concerns, found automated decisions cannot legally be overridden by assessors even when clinically inappropriate.

  • The 104-page Ombudsman report found the IAT algorithm unreasonable, unfair and lacking human oversight.
  • Assessors are legally barred from overriding algorithmic funding decisions, even when clinically wrong.
  • The report found the department did not comply with robodebt royal commission transparency recommendations.
  • Consultation and trials related to earlier IAT versions, not the current form, the report found.
  • The report recommends reviewing legislation and the rules underpinning the algorithm.
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What the investigation found

The Commonwealth Ombudsman's 104-page investigation, triggered in April by public concerns, concluded that the Integrated Assessment Tool's algorithm produces decisions that are unreasonable and unfair, The Guardian reported. The report found automated funding recommendations cannot legally be overridden, even when they are clinically inappropriate.

The Ombudsman said no public information meaningfully explains how inputs become outcomes, describing the tool as a technological black box. It found a reasonable person would lack confidence the system is fair and consistent.

Transparency and oversight gaps

The report found the Department of Health and Ageing did not comply with transparency recommendations from the robodebt royal commission on automated decision-making. It also found trials and consultation cited as supporting the tool related to earlier versions and earlier legislation, with no meaningful consultation on the current form.

The Ombudsman found the department did not enforce contractual quality controls or verify whether assessors held mandatory clinical qualifications. The report recommends a comprehensive review of the legislation and the rules underpinning the algorithm.

Next steps

Ombudsman Iain Anderson said significant legal issues need urgent attention, including how people can challenge decisions whose basis is unclear. The Department of Health and Ageing was contacted for comment.

The department announced a review process in July allowing assessors to escalate wrong decisions, but Anderson said he is concerned this pathway may not be adequate.

What did the Ombudsman recommend to address the aged care algorithm's problems?

The report recommended a comprehensive review of the legislation governing needs assessment and of the rules underpinning the algorithm, and urgent government action on the legal issues identified.

Sources & further reading

Source report: 26 Oct 2026. Event and publication dates may differ.

  1. Unreasonable and unfair: damning investigation criticises Labor’s algorithm-based tool for aged care ↗The Guardian

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