Aged Care Act deferral from 1 July 2025 until 1 November 2025
The Aged Care Act 2024 (“the Act”), set to take effect on 1 November 2025, aims to empower older Australians and ensure fair, and flexible access to government-funded aged care services, while prioritising safety and high-quality care.
The extension of time was driven by the delay in publication of Rules which must be applied once the Act commences.
This delay will allow operators and residents more time to become familiar with measures that will change once the Act is in force.
It is part of a major reform to improve how aged care is delivered in homes, communities, and residential care facilities.
The Act will replace the following legislation:
- Aged Care Act 1997,
- Aged Care (Transitional Provisions) Act 1997, and
- Aged Care Quality and Safety Commission Act 2018,
Key Reforms
a. A Rights-Based Approach
The Act places older people’s rights at its core, emphasising independence, autonomy, and respect for privacy and dignity.
Older Australians will have clear rights when accessing aged care, including the right to make decisions, be respected, feel safe, and have their culture recognised.
b. Introduction of the Support-at-Home Program
The Support-at-Home Program will replace the current Home Care Packages and short-term restorative care programs.
c. Whistleblower Protection
Whistleblowers (including but not limited to people in care, families, and aged care workers) will be protected when raising concerns, safeguarding them from fear of punishment or unfair treatment. If a stakeholder wishes to make a complaint, this can be done via one or more of the following:
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- the Aged Care Quality and Safety Commission;
- the Department of Health and Aged Care;
- the police; or
- an independent aged care advocate
d. Supported Decision-Making
A fundamental principle of the Act is that every older person is presumed to have the ability to make their own decisions – including decisions about the support and services they receive. For those individuals who want or require assistance making decisions, the Act endorses a supported decision-making framework. This means that older people can receive assistance to understand, make, and communicate their decisions while maintaining control.
A key feature will be the introduction of registered supporters, who are persons nominated by older people to assist them in making decisions. Becoming a registered supporter does not provide a person with the authority to make decisions for an older person. The role of the registered supporter is to support the older person in making their own decisions.
e. Strengthened Quality and Safety Standards
The Act introduces a series of mandatory reforms to address critical shortcomings identified by the Royal Commission into Aged Care. These changes aim to strengthen care quality, safety, transparency, and accountability across the sector.
Some of these reforms include:
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- minimum care minutes per resident;
- 24/7 registered nurse availability in residential facilities; and
- higher standards for infection control and nutrition
Aged care providers must be able to maintain robust internal systems to monitor compliance, manage risks, and ensure transparency. Failure to do so could result in the loss of accreditation, funding, revocation of registration, and civil and criminal penalties.
The Aged Care Act 2024 represents a significant shift toward a system that values and prioritises safety, dignity, and quality of life for older Australians. While the implementation of the Act brings with it significant responsibilities and obligations for aged care providers, it also presents a powerful opportunity to elevate the standards of aged care across the sector.
From a financial perspective, funding will be modified as follows:
- residents will no longer be charged for additional services (e.g., wine with dinner, internet, newspapers, in room television) but in lieu a provider can offer Higher Everyday Living Fees (“HELF”), but the changeover can be delayed for 12 months until 1 July 2026.
- full refundable accommodation deposits will be reduced on departure of a resident by a 2% charge the provider can keep
- the rates of funding per day AN ACC (Australian National Aged Care Classification) dependent upon the level of care a resident requires will increase