The federal government has postponed the implementation of Australia’s landmark Aged Care Act by four months following intense pressure from industry groups who warned the original July deadline would create “chaos and confusion” for older Australians.
Health Minister Mark Butler and Aged Care Minister Sam Rae announced the new Aged Care Act will now commence on 1 November 2025, instead of the promised July 1 start date, after the government recommends the delay to Governor-General Sam Mostyn.
The decision affects over 280,000 aged care clients and comes as 83,000 Australians remain on waiting lists for home care packages, with some waiting up to 11 months for appropriate support.
“We want to make sure that all operational, digital and legislative pieces are in place before the rollout starts,” Butler said. “This brief deferral allows providers to train their staff, have conversations with their clients, get their IT systems ready, and prepare operations for an orderly transition.”
The postponement represents a significant backdown for the Albanese government, which had repeatedly promised the rights-based legislation would begin as scheduled despite mounting sector concerns about implementation readiness.
Multiple industry bodies had lobbied for the delay, warning that rushing the reforms could destabilise the sector. The Retirement Living Council’s Executive Director Daniel Gannon welcomed the decision as “much-needed common sense.”
“This delay by the Commonwealth is welcome news and was always the best, inevitable outcome for older Australians and providers alike,” Gannon said. “It’s a big relief for the clients and operators who were feeling anxious over what was a rushed and sloppy approach to a new, modern, and better system.”
Even advocacy groups reluctantly supported the delay despite their frustration with further postponement of promised reforms. The Older Persons Advocacy Network CEO Craig Gear said while his organisation had been “steadfast” in calling for July implementation, the delay was now necessary.
“However, over the past weeks, it has become increasingly apparent that, while the macro design of the reform is solid, older people don’t have the necessary information to make informed choices at an individual level, particularly around the new Support at Home program,” Gear said.
“We are also concerned that the appropriate systems aren’t yet in place to ensure continuity of care and services for older people during the transition.”
Catholic Health Australia CEO Jason Kara, representing over 350 aged care facilities, said the delay was essential to prevent “unintended negative consequences.”
“Partly due to the later-than-expected passage of the Aged Care Act, much of the detail around how the new program will work is incomplete or in draft,” Kara said. “Requiring providers and residents to sign agreements without key information such as co-contribution amounts and transitional rules would have risked the discontinuation of care.”
Silverchain Group CEO Dale Fisher, whose organisation is Australia’s third-largest home care provider, said the sector lacked crucial information needed to reassure clients about changes.
“Our focus has been on preparing our clients for these changes, but without the key subordinate legislation and grandfathering detail available, we cannot reassure them on how the change affects them,” Fisher said. “We strongly support these reforms, but this postponement was urgently needed to avoid chaos and confusion for older people, their carers and families.”
However, advocates warned the delay shouldn’t slow reform momentum. Gear called for the release of 20,000 additional home care packages during the four-month window to address current waiting lists.
“This is not the time to take our foot off the pedal. Older people have been waiting years for an Act that enshrines their rights in legislation. This delay risks pushing out the timeline for them to receive more timely and rights focused aged care,” he said.
The postponement allows providers additional time to finalize pricing structures, train staff, and prepare IT systems for the transition to the new Support at Home program, which promises to give older Australians more choice and control over their care.
Ritchelle is a Content Producer for Healthcare Channel, Australia’s premier resource of information for healthcare.
