The Australian Government has introduced a significant overhaul of aged care legislation with the release of the new Aged Care Act, set to commence on the 1st of November 2025. Replacing the Aged Care Act 1997, this reform stems from recommendations made by the Royal Commission into Aged Care Quality and Safety. The changes aim to improve care quality, enhance transparency, and place the needs of older Australians at the heart of the aged care system.
For residential aged care providers, this means adapting to a new legal and operational landscape that prioritises human rights, accountability, and safety.
A Rights-Based Foundation in the Aged Care Act
One of the most transformative changes in the new Aged Care Act is its rights-based approach, drawing on principles from the United Nations’ human rights conventions. This framework ensures that older people in residential care have legally enforceable rights, moving beyond the former “Charter of Aged Care Rights,” which was largely aspirational.
Residential aged care providers will now be held directly responsible for upholding these rights. This includes respecting residents’ autonomy, privacy, and dignity in care settings. The Aged Care Act also makes it easier for residents and their families to lodge complaints or seek redress if these rights are violated, shifting the power dynamics within the care relationship.
Facilities will need to train staff on what these new rights mean in practice and demonstrate how their policies and procedures actively support them. Providers must also be prepared for more detailed assessments by the Aged Care Quality and Safety Commission regarding human rights compliance.
Regulatory Accountability and The Aged Care Quality and Safety Commission
Under the new Aged Care Act, the Aged Care Quality and Safety Commission will gain expanded powers to monitor, investigate, and enforce standards in residential aged care services. Providers will need to be more proactive and transparent in how they meet care standards and respond to issues.
The Aged Care Act outlines a new regulatory framework that shifts the emphasis from basic compliance to continuous improvement and risk-based monitoring. Instead of prescriptive rules, providers will be assessed based on how effectively they deliver outcomes aligned with residents’ needs and preferences.
Additionally, penalties for non-compliance are more severe. The Commission can now issue infringement notices, initiate civil penalties, or revoke a provider’s approval to deliver services under the Aged Care Act. This means aged care homes must regularly review and upgrade their systems, quality assurance processes, and staff accountability measures.
Mandatory Registration Of Providers and Aged Care Workers
A major new requirement under the Aged Care Act is mandatory registration for both aged care providers and workers. This national registration system aims to improve safety and workforce accountability across the sector.
For residential aged care providers, this means submitting detailed information on ownership, governance structures, financial viability, and staffing profiles to a central register. This registry will be public, allowing greater transparency for families selecting care homes.
Aged care workers, including personal care assistants, must also be registered under the new Aged Care Act, similar to healthcare professionals like nurses. This includes adherence to a Code of Conduct and meeting specific qualification and training requirements. Workers with substantiated complaints or disciplinary issues can be sanctioned or deregistered, helping to ensure that only qualified and ethical individuals are delivering care.
Providers must budget for these new registration requirements and invest in human resources systems to manage compliance efficiently.
Funding, Reporting, and Financial Transparency Requirements
The Aged Care Act brings sweeping reforms to how residential aged care is funded and how providers must report on their financial performance. Central to these reforms is the new Australian National Aged Care Classification (AN-ACC) funding model, which ties subsidies more closely to the care needs of individual residents.
The Aged Care Act requires providers to report not only on income and expenditure but also on how funds are used to support direct care. This includes reporting on food, clinical services, allied health, and personal care staffing levels. These financial statements will be made available to the public via the My Aged Care website, introducing an unprecedented level of transparency.
Providers must now also comply with the new Prudential Standards, ensuring they hold sufficient reserves and financial protections to meet resident care obligations and refund accommodation deposits. Non-compliance could lead to intervention by the Commission under the Aged Care Act.
Financial managers in aged care facilities will need new systems and skills to navigate this change and maintain regulatory compliance.
Workforce Reforms and Care Quality Expectations
Residential aged care providers must prepare for workforce-related reforms included in the Aged Care Act, which reflect the government’s goal to professionalise and stabilise the aged care workforce.
Among the most notable changes are mandatory minimum care times, currently set at 200 minutes per resident per day, including 40 minutes from a registered nurse. These care minutes are mandated under the Aged Care Act and must be reported monthly. Non-compliance will affect future funding and accreditation status.
In addition to registration, all aged care staff will be subject to ongoing education and professional development requirements. The Aged Care Act ensures that workers have the skills and cultural competencies needed to deliver safe, respectful, and inclusive care.
Providers must also adopt workforce planning strategies to reduce reliance on casual or agency staff and improve retention. This includes supporting pathways for existing staff to upskill and offering leadership development programs to enhance care quality at every level.
The new Aged Care Act marks a transformative shift in how residential aged care is delivered, monitored, and experienced in Australia. By placing human rights, transparency, and accountability at the centre of the system, the legislation responds directly to the findings of the Royal Commission and the long-standing concerns of residents, families, and providers alike.
For residential aged care providers, this means adapting to a more regulated and resident-focused environment. While the changes present operational challenges from workforce registration to clinical governance, they also offer an opportunity to rebuild trust and deliver higher standards of care.
Preparing early, investing in staff and systems, and embracing the spirit of the legislation will position providers for success in this new era of aged care. The Aged Care Act is not just a compliance requirement; it’s a blueprint for a more respectful, responsive, and sustainable future for older Australians.
