New Aged Care Act ushers in historic reforms for older Australians
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The passage of the new Aged Care Act marks a transformative milestone in Australian aged care, enshrining the rights of older Australians and overhauling the system to prioritise quality, safety and dignity.
The Albanese Labor Government has achieved bipartisan support for its landmark reforms, delivering on the key recommendations of the Royal Commission into Aged Care Quality and Safety. The new Act is set to bring sweeping changes starting July 2025, focusing on person-centred care, enhanced transparency and sustainable operations.
A rights-based approach to aged care
Described as “historic” by stakeholders, the new Act centres on the rights of older Australians, ensuring their dignity and choice are at the forefront of care. It introduces a Statement of Rights and tougher regulatory standards to hold providers accountable.
“This truly is an historic moment in Australia’s aged care reform journey,” said Aged and Community Care Providers Association (ACCPA) CEO Tom Symondson. “Our elected politicians should be congratulated on reaching rare bipartisan support for these landmark reforms.”
Minister for Aged Care Anika Wells echoed the sentiment, calling the legislation “the final piece of the puzzle to create a better way of caring for older people.”
Key reforms and investments
The Act introduces a $4.3 billion Support at Home program aimed at reducing wait times and helping older Australians remain independent in their own homes. This program will include home modifications, assistive technology and additional flexibility for cleaning and gardening services.
Other significant reforms include:
- 24/7 nursing coverage.
- Star Ratings for aged care facilities.
- An $11.3 billion investment in worker pay rises.
- Capped management fees for providers.
The Act also increases home care funding classifications from four to ten, allowing for more tailored care.
Challenges for implementation
While the reforms are welcomed, aged care providers have raised concerns about the complexity and scale of the changes.
“The number one priority for aged care providers is to improve the lives of older Australians, but they also face a mammoth task in transitioning,” Symondson said. “A staged approach to implementation should be adopted. We only get one chance to get this right.”
Samantha Edmonds, Director of Policy and Systemic Advocacy at the Older Persons Advocacy Network (OPAN), stressed the importance of continued advocacy: “Reform of this scale will take time to implement – and we need to ensure the rules uphold the rights of older people.”
To ensure the success of the reforms, the government has established an Aged Care Transition Taskforce to support providers in adapting to the new system. OPAN and ACCPA have committed to working with the government and stakeholders to ensure older Australians are engaged throughout the process.
Edmonds reaffirmed OPAN’s commitment to systemic advocacy: “We will continue to work closely with the Government, our fellow peaks, and aged care providers on the implementation of the Act, ensuring older people are engaged in the process.”
Ritchelle is a Content Producer for Healthcare Channel, Australia’s premier resource of information for healthcare.
