In this guest post, Robert Samut discusses the New Aged Care Act and the greater accountability on providers and “Responsible Persons” to uphold residents’ rights, safety, and quality care.
On 1 November 2025, the Aged Care Act 2024 (Cth) (the Act) came into operation, which applies to government-funded aged care services. The Australian aged care industry entered a new regulatory world – one where the rights of aged care recipients are the primary focus, and where aged care providers must ensure that these rights are both respected and protected.
The new Act introduces obligations for every ‘responsible person’ within a registered provider of aged care services – and there are real consequences for failing to meet these obligations.
The need for reform
To grasp the duties of responsible persons, we must reflect on the developments that prompted these reforms.
In recent times, a groundbreaking Royal Commission has often been preceded by an exposé on ABC’s Four Corners. For aged care, the turning point was the program’s two-part investigation, “Who Cares?”, which exposed bad actors in the aged care industry and sparked widespread outrage and shame.
The Royal Commission made 148 recommendations to fix the system. It identified that poor governance and accountability at provider and board levels were major contributors to system failures.
It recommended stronger oversight by persons having decision-making authority or influence over the way in which aged care services are provided, and so, the ‘responsible person’ found its way into the Act.
Who are Responsible Persons?
Providers need to note that the Act distinguishes between responsible persons employed in government and non-government sectors.
Non-government entity
If the registered provider is not a government entity, then a responsible person includes:
- Any person who is responsible for the executive decisions of the registered provider, which includes all members of the governing body of the provider.
- Any other person who has authority or responsibility for (or significant influence over) planning, directing or controlling the activities of the registered provider.
Any providers (government or non-government)
For any registered provider of aged care services (which includes both government and non-government entities), a responsible person will be:
- Any person who has the responsibility for the overall management of the nursing services, and who is a registered nurse.
- Any person who is responsible for the day-to-day operations of an approved residential care home or service delivery branch of the registered provider.
Although the definition of responsible persons, as it applies to government entities, does not specifically refer to persons who make executive decisions or those having responsibility for planning, directing or controlling the activities of the provider, the Act does not exclude these people from being responsible persons if they are responsible for the day-to-day operations of the provider. 6 November 2025 | Page 2
What level of responsibility is imposed by the Act?
The Act includes a condition for a provider’s registration that it must meet certain obligations relating to responsible persons and aged care workers more generally. This includes complying with worker screening requirements, ensuring that aged care workers meet qualifications and training requirements, and that aged care workers are given opportunities to develop their capability to provide funded aged care services.
In addition, a registered provider must consider the suitability of its responsible persons at least once every 12 months, and keep a record of such reviews. Failure to do this is an offence under the Act and attracts a financial penalty.
Responsible persons in the non-government sector who are on the Board, making executive decisions, or who are otherwise responsible for planning, directing or controlling the activities of the registered provider are subject to higher statutory duties. They must:
- Acquire and maintain knowledge of the statutory requirements that apply to the registered provider.
- Gain an understanding of the nature of the funded aged care services the registered provider delivers and the potential adverse effects that can result for individuals when delivering those services.
- Ensure that the registered provider has available for use, and uses, appropriate resources and processes to manage adverse effects to the health and safety of individuals accessing funded aged care services.
- Ensure that the registered provider has appropriate processes for receiving and considering information regarding incidents and risks and responding in a timely way to that information.
- Ensure that the registered provider has, and implements, processes for complying with its statutory duties.
All responsible persons otherwise have an obligation under the Act to comply with the Aged Care Code of Conduct, notify the regulator of any changes in their suitability to be a responsible person, and comply with the whistle-blower provisions in the Act where a protected disclosure is made to them.
The cost of non-compliance
A failure to meet these obligations exposes a responsible person to individual financial penalty. For providers, a failure to provide training to responsible persons so that they understand these new requirements exposes the provider to a financial penalty.
But the cost of non-compliance goes beyond fines – it can severely damage your reputation. In an industry built on trust and care, breaches can erode confidence among residents, families, and regulators, lead to negative media coverage, and impact occupancy rates. Compliance isn’t just a legal requirement – it’s critical to safeguarding your organisation’s credibility and ensuring the dignity and safety of those you serve.
Robert Samut heads Barry Nilsson’s national Health & Life Sciences team. He has more than 20 years’ experience in insurance and health law, and acts for insurers, hospitals, health organisations, self-insureds and government in the areas of medical negligence and health, professional indemnity, and public and products liability.
