Preparing for the new Aged Care Act

The new Aged Care Act will lead to major changes across the aged care system and transform Australia’s aged care laws to put the rights and needs of older people first.

There is lots of work underway to ensure everyone is ready for what will change from 1 July 2025.

This article outlines what has happened since the Aged Care Bill 2024 was introduced to Parliament in September. It also explains what is coming up next.  

The Aged Care Bill 2024

The Bill was introduced to Parliament on 12 September 2024. It sets the stage for a new Act that will:

• improve the lives of older people accessing aged care 
• encourage aged care providers to deliver high-quality care. 

Subject to parliamentary processes, the new Act will commence from 1 July 2025.

To learn more about the new Act, read the factsheet that is available in both plain language and Easy Read formats.

Public hearings

Throughout October, the Community Affairs Legislation Committee held public hearings on the Bill in various locations around Australia.

The Committee heard from providers, peak bodies, unions, academics, advocates and most importantly those with lived experience of the aged care system – older people and their families and carers.  

It was a valuable opportunity to discuss a range of topics, including:

• provider readiness for the start of the new Act
• any outstanding barriers to implementing the aged care reforms
• the new funding arrangements to support long-term sustainability of the sector.   

The Committee will produce a report on the hearings. This will help inform the final wording of the Bill and guide the drafting of the Aged Care Rules.

Aged Care Rules

Public consultation on the Aged Care Rules is now underway.

The Rules will provide further detail and instruction on how the Act will operate, including what older people can expect when accessing aged care. They also give meaningful direction to the providers on what the changes to aged care mean for them, so they know what they need to do and when they need to do it.

Over the next few months, the Department of Health and Aged Care is seeking feedback on the Rules. This feedback will: 

• help make clear how the Rules will affect older people and the care they receive
• ensure the Rules capture feedback from previous consultation 
• allow providers to tell us what they need to help prepare for the new Act.

The Rules are being released in six separate stages between October 2024 and March 2025.

The first release was the service list. The service list outlines the care and services that will be available to older people under the new laws. Submissions closed on 31 October.

The second release will be on Chapter 4 of the Bill. Chapter 4 is about the funding of aged care services, including subsidies, contributions, means testing, accommodation and grants.

An overview of the Chapter 4 rules is available on the department’s website. The full rules will soon be released, along with the opportunity to provide feedback.

Future releases will cover a range of topics including Quality Standards, complaints handling, incident management, governing body requirements, rights and principles, and reporting and record keeping.

The Rules consultation builds on feedback received on the foundations of the new Aged Care Act, the exposure draft of the Bill and separate consultations on related policy.