Australian Ombudsman Criticizes Automated Aged Care Algorithm as 'Unreasonable, Unfair'

Australian Commonwealth Ombudsman Iain Anderson released a 104-page report on October 26, 2026, criticizing the government's Integrated Assessment Tool (IAT), an automated aged care algorithm, as "unreasonable, unfair and lacks human oversight"[11][20]. The report found that current legislation prevents aged care assessors from overriding the IAT's funding recommendations, even when these decisions are clinically inappropriate[11].

This investigation into the IAT highlights challenges with automated decision-making in critical public services. When algorithms determine access to essential care without human intervention, it can lead to negative outcomes for vulnerable people and erode public trust in government use of artificial intelligence.

What the records show

The Ombudsman's report described the IAT as a "technological black box" because of insufficient public information about its operations[2]. The investigation stated that recommendations from the Robodebt Royal Commission concerning transparency in government automated decision-making were not implemented[11]. The report concluded that the IAT's inability to be overridden reduces public confidence, asserting that legislative amendments are necessary to permit assessors to correct clinically incorrect algorithmic decisions[11]. InnovationAus.com characterized the report as "scorching," noting it found the department responsible for the IAT misunderstood its legal framework and misled the public[2]. MND Australia, a patient advocacy group, welcomed the investigation, with CEO Clare Sullivan stating the algorithm was "causing real harm" to individuals with rapidly progressing conditions like Motor Neurone Disease by leading to inappropriate funding and priority decisions[3]. The case of Graham Crossan, an 80-year-old Melbourne man with advanced motor neurone disease, illustrates these concerns, as he was denied additional home care funding by the IAT, which human decision-makers could not override[26].

The timeline

In March 2025, the Commonwealth Ombudsman updated its "Automated Decision-making – Better Practice Guide" to ensure compliance with administrative law, privacy principles, and best practices for automated systems, focusing on legality, fairness, rationality, and transparency[13][14][23][24][25]. Australia's policy for the responsible use of AI in government, effective December 2025, established requirements for accountable officials, internal registers, and impact assessments for in-scope AI use cases[7][8]. On June 22, 2026, the Australian Government announced the creation of an Artificial Intelligence (AI) Review Committee, chaired by Chris Fechner, CEO of the Digital Transformation Agency (DTA), to provide expert scrutiny and risk-based advice for safe and consistent AI adoption across government[5][27]. On July 2, 2026, Ageing Australia, representing aged care providers, announced the government's plan to introduce human oversight into the IAT through legislative changes[12]. Prime Minister Anthony Albanese announced the establishment of an Office of AI within the Department of the Prime Minister and Cabinet on July 15, 2026, to coordinate AI policy, develop mandatory Australian AI standards, and create a unified regulatory framework[4][6][21][22].

What changed and for whom

The Ombudsman's report recommends legislative amendments to enable human assessors to override IAT decisions[11]. Ageing Australia welcomed the government's decision to introduce human oversight into the IAT, citing planned legislative changes to support human intervention when assessments are incorrect[12]. Ageing Australia CEO Tom Symondson stated algorithms "should not have the final say" in complex aged care needs[12]. These changes could benefit individuals like Graham Crossan, who previously faced denials of necessary care from the automated system[26].

What the subject has said publicly

Lucy Poole, DTA Deputy CEO, affirmed the government's commitment to ensuring Australians have confidence in its responsible use of AI[28]. Prime Minister Anthony Albanese said the country must act now to shape how artificial intelligence develops, balancing innovation, investment, economic growth, national sovereignty, and job creation[6].

What we could not confirm

We could not confirm the specific timeline for the proposed legislative changes to allow human oversight of the IAT, nor the exact details of how such overrides would be implemented. The full extent to which the government plans to address all concerns raised in the Ombudsman's 104-page report, particularly regarding transparency and the "technological black box" nature of the IAT, also remains unconfirmed.