The new Aged Care Act was passed in the Australian Parliament on 25 November 2024. It will commence on 1 July 2025. Much of the detail around how it is to be implemented is contained in the subordinate legislation, or rules. These rules have yet to be finalised. We will update this article as more information becomes available.
Why does Australia need a new Aged Care Act?
The current Act is primarily a business arrangement between government and aged care service providers. The Aged Care Royal Commission said it was no longer fit for purpose.
A new Act that focuses on the needs of the people who are accessing aged care services was the top of the commission’s list of recommendations. By putting older people at the centre of their aged care, the new Act aims to address the current power imbalance between older people and aged care service providers.
The new Act provides us with the legislative building blocks we need to:
- improve aged care quality and safety
- better protect the rights of older people
- ensure the financial sustainability of the aged care sector for generations to come.
What are the key changes?
A rights-based focus
The new Act introduces a Statement of Rights for older people, which includes rights like independence, autonomy, and respect for privacy.
Enhanced quality standards
The new Act implements strengthened Aged Care Quality standards to ensure care is safe, high-quality and tailored to the needs of the older person.
Greater protections
The new Act increases protections for whistleblowers and expands the range of issues they can report on.
Safeguards around decision-making
Older people can register one or more people of their choice to assist them in their decision-making under the new Act. These ‘supporters’ have an explicit duty to maintain the person’s capacity to make their own decisions.
An independent complaints process
An independent Complaints Commissioner, appointed by the minister, will promote the independence, transparency, and accountability of complaints handling by the Aged Care Quality and Safety Commission.
A new funding model
Older people will be required to make means-tested co-contributions for their non-clinical care under the new Act. There will be new hardship measures for older people with limited means.
The government is applying a ‘no worse off’ principle through grandfathering arrangements so older people currently in the aged care system are not disadvantaged.
Register for our webinar on Tuesday 25 February to learn more from our panel of experts who will provide information and insight into the changes to the Act and how it will affect you.
If you would like to speak to an advocate about what the changes to the Act will mean for you, call the Aged Care Advocacy Line on 1800 700 600.
