The election of a Federal Coalition Government in 1996 ushered in the Workplace Relations Act 1996. On May 26, 2005, the Prime Minister and the Minister for Employment and Workplace Relations announced further reforms to Australia's industrial relations system. The aged care industry in Australia remains one of the most regulated industries and is almost wholly dependent upon a state-based funding regime. In 1996, the Howard government fundamentally changed the previous tied funding arrangements for nursing and non-nursing/support functions to a new unified accreditation and funding system under the Aged Care Act 1997 and Aged Care Principles made under the Act, linking quality/outcomes and accreditation. The implementation of the proposed industrial relations reforms is likely to impact on the aged care industry at different levels. Overall, the proposed Howard government industrial relations reform adopt a broad-brush approach and it will be some time before the full impact on the aged care industry is known.