Today marks a signficant milestone in aged care with the passing of the Aged Care Bill through Parliament, introducing a once-in-a-generation overhaul of the sector. The new Aged Care Act promises a system prioritising quality care, safety, and the rights of older Australians.
At the core of the reforms is the integration of a Statement of Rights, ensuring safety, dignity, and respect for seniors in aged care. The Act addresses the top recommendation of the Royal Commission into Aged Care Quality and Safety, alongside 57 other recommendations.
Effective July 1, 2025, the new legislation will implement:
• A tougher regulatory model
• Enhanced Aged Care Quality Standards
• Stronger protections for residents and families, including the right to voice concerns.
A key feature is the introduction of the Support at Home program, a $4.3 billion initiative enabling seniors to live independently longer. The program aims to cut home care wait times, add 300,000 places over a decade, and support 1.4 million participants by 2035.
Support at Home includes home modifications, assistive technologies, and expanded funding classifications (from 4 to 10). Notably, there will be no caps on essential services like cleaning and gardening, providing greater flexibility.
The Act also responds to recommendations from the Aged Care Taskforce by implementing sustainable funding measures to ensure long-term sector viability.
These changes follow a series of reforms, including 24/7 nursing in care homes, Star Ratings for facilities, and an $11.3 billion investment in worker pay rises.
In a statement, Minister for Aged Care, Anika Wells, hailed the Act as a crucial step in building a fairer, more innovative system: “Older Australians deserve care that values their dignity and rights, and this Act delivers on that promise.”
Aged care providers see the reforms as an important plank in being able to invest in services to meet demand. As often reported, the sector has been largely operating at a loss, requiring significant investment to begin preparing for what has been referred to as the Silver Tsunami.
“Aged care providers can now move to a sustainable footing and start to look at expanding operations where there is unmet need, particularly among vulnerable and marginalised communities.”
Catholic Health Australia
The reforms signal a new era in aged care, aligning the system with the needs and aspirations of Australia’s ageing population.
