New Aged Care Act
The Australian Government has recently introduced the Aged Care Bill 2024 to Parliament, marking a significant milestone in the country’s aged care sector. This bill was passed by Parliament on 25 November 2024 and is set to come into effect as the new Aged Care Act 2024 starting from 1 July 2025.
For those interested in learning more about this important legislation, you can review the following resources:
- Minister for Aged Care’s media release announcing the introduction of the Bill for the new Act
- The Minister for Aged Care’s media release announcing the passage of the Bill for the new Act
- Aged Care Bill 2024 and explanatory memorandum An overview fact sheet on the Aged Care Act 2024
- An easy-to-read overview fact sheet on the Aged Care Act 2024
These resources provide valuable insights into the key provisions and implications of the new Aged Care Act 2024, ensuring that stakeholders are well-informed and prepared for the changes ahead.
About the new Act
Currently, the aged care sector is governed by a multitude of laws. The upcoming Act is set to replace:
- Aged Care Act 1997,
- Aged Care (Transitional Provisions) Act 1997,
- Aged Care Quality and Safety Commission Act 2018
The primary goal of the new Act is to enhance the delivery of services to older individuals in
- their homes,
- community settings,
- approved residential aged care facilities.
It will:
- establish the rights of older individuals seeking and utilizing aged care services, * introduce a streamlined entry process with clear eligibility criteria,
- implement a culturally sensitive Single Assessment System framework, support service delivery,
- create new oversight and accountability mechanisms,
- enhance provider responsibility through a revised regulatory framework, and fortify the aged care regulatory body.
The new Act is scheduled to come into effect on July 1, 2025, coinciding with the launch of the Support at Home program.
By carefully phasing in these reforms, a smooth transition to the improved aged care system envisioned by the Royal Commission into Aged Care Quality and Safety can be achieved.
Importance of the New Act
The Royal Commission has determined that the current Aged Care Act and its associated legislation are no longer suitable for the needs of our aging population. The existing framework focuses on providers and funding mechanisms, rather than prioritizing the individuals who require care and support.
The introduction of a rights-based Aged Care Act will revolutionize the aged care system by placing older people at the forefront. This means that the services provided will be centered around the needs and rights of the individuals accessing them.
The new Act will address approximately 60 recommendations made by the Royal Commission, including:
- the implementation of the Government’s response to the Aged Care Taskforce recommendations,
- the establishment of the Support at Home program, the enhancement of Aged Care Quality Standards,
- the empowerment of the Aged Care Quality and Safety Commission, and the creation of a Statement of Rights for older individuals.
Furthermore, the new Act will build upon previous aged care reforms that have already been successfully implemented.
This comprehensive approach aims to ensure that older people receive the highest quality of care and support they deserve.
Legislative Progress in Aged Care Reforms
Significant strides have been made in implementing crucial aged care reforms delivered through amendments to existing legislation. These changes were swiftly enacted to address key recommendations from the Royal Commission.
The introduction of the new Act marks a pivotal moment in the ongoing transformation of the aged care system. For a comprehensive overview of the proposed reforms, refer to our detailed reform roadmap.
The Aged Care and Other Legislation Amendment (Royal Commission Response No. 1) Act 2021 has brought about essential modifications, including:
- Strengthening controls on the use of restrictive practices, ensuring they are only utilized as a last resort
- Implementing assurance reviews to monitor the appropriate allocation of government funding by home care providers
- Disbanding the Aged Care Financing Authority (ACFA) in favor of establishing the Independent Health and Aged Care Pricing Authority, a new advisory body for aged care financing.
The Aged Care and Other Legislation Amendment (Royal Commission Response) Act 2022
This Act was introduced to address 17 recommendations made by the Royal Commission.
This Act brings about significant changes in the aged care sector, including:
- Implementation of the new Australian National Aged Care Classification funding model for residential aged care
- Introduction of Star Ratings for residential aged care services
- Establishment of an enforceable Code of Conduct for Aged Care that applies to approved providers, their governing bodies, and workforce
- Granting powers to the Aged Care Quality and Safety Commissioner to take enforcement action in cases of Code of Conduct breaches.
- Extension of the Serious Incident Response Scheme to cover home care and flexible care provided in a home or community setting, along with incident management responsibilities
- Strengthening of provider governance
- Improvement in information sharing between regulators in the aged care, veterans’ care, and disability support sectors
- Enhanced financial and prudential oversight of the use of residential accommodation deposits and bonds
- Expansion of the functions of the Independent Health and Aged Care Pricing Authority to provide pricing advice to the government on aged and general health care
- Revision of restrictive practices arrangements to address gaps in state and territory guardianship and consent laws.
The Aged Care Amendment (Implementing Care Reform) Act of 2022
This Act was enacted in response to two recommendations from the Royal Commission. This Act aims to enhance the integrity and accountability of residential aged care homes, fulfill the government’s election promises, and bring about positive changes in the aged care sector.
Key provisions of the Act include the prohibition of exit fees and the capping of administrative and management charges in the Home Care Packages Program. Additionally, the Act mandates that a registered nurse must be present and available 24 hours a day, 7 days a week in every residential aged care facility.
Furthermore, the Act introduces mandatory reporting requirements that necessitate the publication of additional provider information to promote transparency. This information includes details on provider spending in various areas such as
- care
- nursing
- food
- maintenance
- cleaning
- administration
- profits
Who will be impacted by the new Act?
The new Act will have an impact on all individuals involved in the aged care system, including:
- Older individuals, their families, and caregivers
- Aged care providers
- Aged care workers
- The broader care sector
- Government agencies responsible for supporting, delivering, regulating, and overseeing the aged care system, such as the Department of Health and Aged Care, the Aged Care Quality and Safety Commission,
- Services Australia
This legislation will bring changes that will affect various aspects of the aged care system, making it crucial for all stakeholders to stay informed and prepared for the upcoming adjustments.
Partnerships in Developing the New Act
To ensure that the new Act accurately represents the needs of older individuals, we collaborated and consulted with a variety of stakeholders throughout its development. These included:
- Older individuals, along with their families and caregivers
- Aged Care Council of Elders
- National Aged Care Advisory Council
- Providers of aged care services
- Aged care professionals
- Leading aged care organizations
- Consumer and sector reference groups
- Various experts in the field
By engaging in these diverse groups, we were able to gather valuable insights and perspectives that informed the creation of the new Act. This collaborative approach has helped to ensure that the legislation is comprehensive, inclusive, and responsive to the needs of older individuals in our community.
The new Act will have a significant impact on all older Australians involved in aged care services?
It aims to empower older individuals to assert their rights when accessing or seeking Commonwealth-funded aged care services, ultimately supporting them in leading active, self-determined, and meaningful lives as they age.
Providers will be required to register to deliver Commonwealth-funded aged care services and must adhere to a set of obligations, including specific conditions related to their registration. This requirement applies even if they subcontract the delivery of services to other parties.
Additionally, separate obligations will be imposed on aged care workers, responsible individuals of registered providers, and operators of digital platforms that facilitate access to services. These measures are designed to ensure the highest standards of care and support for older individuals in need of aged care services.
The new Aged Care Act the broader sector. It will put