Update on the new Commonwealth Aged Care Act

The new Act replaces three Acts that currently govern aged care (the Aged Care Act 1997, Aged Care (Transitional Provisions) Act 1997, and the Aged Care Quality and Safety Commission Act 2018).  

The new Aged Care Act is rights-based and is intended to put older people who need aged care at the centre of the service system. It was created in response to recommendations of the Royal Commission into Aged Care Quality and Safety. The Royal Commission found that current aged care legislation is not fit for purpose because it is focused on service providers and funding, rather than the people who access services.   

The new Act does acknowledge the contribution that carers make to quality of care and to the sustainability of the aged care service system, but it is disappointing that the new Act does not include entitlements for carers, as originally proposed by the Royal Commission.   

Key features of the new Aged Care Act  

• Empowerment of service users. The Act emphasizes the rights, needs and personal choices of people accessing aged care services.  
• Single Assessment process: A new single-entry point will be introduced for access to both home and residential care services, with clearer eligibility requirements and streamlined assessment.   
• Statement of rights and principles: The Act includes a new statement of Rights, focusing on consumer choice, dignity, and safety, along with a Statement of Principles to guide conduct and ensure the whole of the aged care system is directed towards the health, wellbeing, and quality of life of individuals accessing funded aged care services.   
• Strengthened Regulatory Framework: There will be stronger powers for the Aged Care Quality and Safety Commissioner, a Code of Conduct for Aged Care service providers and workers, a serious incident reporting scheme, improved complaints mechanism and new requirements for service providers aimed at reducing the use of restrictive practices. There will be penalties for non-compliance.   
• A clear legal framework for supported decision making will include registering the supporters of people accessing aged care and establishing principles and duties to guide supported decision making.  
• Whistleblower protection: Enhanced protections will be in place to safeguard individuals reporting misconduct in the aged care sector.   
• Funding and contributions: New funding arrangements will mean wealthier people have to contribute more towards non-clinical care costs, while clinical care remains government- funded.  

The Rules supporting implementation of the Act are being released in six separate stages between October 2024 and March 2025. The time-period for review of the new Act’s operation is 5 years. Carers Australia has recommended this be shortened to three years to fix any problems with the new Act and Rules which may negatively impact on service users and carers. Carers Victoria will continue to monitor developments and keep you posted on issues that may impact carers.  

You can view Carers Australia’s submission to the Department of Health and Aged Care Consultations on the Aged Care funding rules here:  carersaustralia.com.au/submissions-reports/submissions/  

Support at Home program  

The 1 July 2025 start date for the new Act aligns with the phased launch of the new Support at Home Program. The new Support at Home Program will replace Home Care Packages and the Short-Term Restorative Care Programme this year and the Commonwealth Home Support Program will transition from 1 July 2027. 

The Support at Home program is a new initiative by the Australian Government to enhance aged care services at home. It aims to provide a more tailored, flexible, and unified approach to aged care, allowing older people to stay at home for longer.    

The Support at Home Program also aims to improve support for carers through the new assessment process and increased integration between My Aged Care and Carer Gateway. Carer Gateway will play an increased role in booking respite services in advance for carers of people who are ageing and will continue to provide counselling, coaching, peer support and skills training. Carers Victoria has advocated strongly to the Australian Government about improving integration and navigation across different Commonwealth service platforms - this has been a common issue raised by carers with us - and we look forward to seeing improvement in this important part of the service system.  

More information about the new Act and the Government’s Support at Home program can be found here:  

About the new Aged Care Act | Australian Government Department of Health and Aged Care