Govt prints summary of Aged Care Act changes

The government has published a list of amendments made during the parliamentary process to reach bipartisan agreement on the sector’s new legislation.

Aged Care Act 2024 – which came into being on 2 December after parliament passed Aged Care Bill 2024 a week earlier – aims to strengthen the rights of older Australians and clarify the expectations and obligations of providers of aged care.

Key amendments include:

• the system governor must now report quarterly to the minister on waiting periods for certain funded aged care services
• changed timeframes for complaints commissioner determinations, including preparing written statements
• improved transparency for older people that the fee reduction supplement applies to financial hardship
• an independent review of the accommodation supplement, with the provision that a report to the new parliament must be done no later than 26 July
• any aged care rules related to certain provisions in the new Act must be referred to a senate committee for review and must be done within three months of the rules being tabled in the Senate
• from 1 December 2026, the immunity in section 163 of the new Act, related to restrictive practices, will no longer apply, ensuring providers must comply with both the requirements of the new Act and any other relevant state and territory laws (this will ensure that restrictive practices are only used where necessary and proportionate, and only in specific circumstances)
• deductions that a provider can claim from a Refundable Accommodation Deposit (RAD) each year will be capped, and providers must not deduct a RAD retention amount greater than 2 per cent in any year
• the Statement of Rights has been amended to allow that an individual has a right to access, at any time, a designated person of their choice, or one nominated by an appropriate authority
• a review of the new Act has been brought forward from five years to three years from commencement
• reference to ‘worker voice’ has been removed, along with a condition of registration that a provider must offer their workforce the opportunity to establish a quality care worker voice body
• no worse off principle
  • the Aged Care Rules can advise different methods or requirements for the calculation of subsidies, individual contributions, accommodation payments and means testing
  • older people approved for home care on or before 12 September 2024 or who entered permanent residential care prior to the commencement of the new Act are exempt from some of the new funding arrangements
  • unspent home care funds paid under the existing Act can be used or returned to the Australian Government under the new Act
  • these amendments ensure individuals approved under existing arrangements should generally not pay more for their care under the new Act.
• caps on cleaning and gardening have been removed

The full list of parliamentary amendments and the final version of the new Aged Care Act can be read here and here.

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