The new Aged Care Act is here
The once-in-a-generation reform has been welcomed by many in the sector, but with promises to monitor closely for unintended outcomes.
After being delayed from 1 July, the new Aged Care Act has finally come into effect.
The new rights-based framework aims to ensure older people and their needs remain at the centre of the new system.
Among the key changes is the Statement of Rights – enshrining in law the rights that older people accessing aged care should expect when seeking or accessing government-funded aged care services.
There are also enhanced quality standards, which obligate providers to include older people in the planning and management of their care to ensure it is safe, high quality and tailored to their needs.
Residential aged care places are also now being allocated directly to older people – giving them more control over which home they would like to choose.
Meanwhile, the Home Care Packages program is being replaced with the Support at Home model, which introduces a new classification system and funding model.
The SaH model also brings three short-term classifications for which additional funding is allocated outside of a participant’s main budget, including the:
- restorative care pathway
- end-of-life pathway
- assistive technology and home modifications scheme.
The SaH transition also includes a ‘no worse off’ principle, which applies to people who, on or before 12 September 2024, were either receiving an HCP, were in the national priority system or had been assessed as eligible for an HCP. Such people do not have to pay co-contributions.
Co-contributions have been flagged as something that sector leaders are going to monitor closely in the aftermath of the transition to ensure there are no unintended consequences.
Concerns have also been raised about the home care waitlist, with the number of people waiting for a package at their approved level currently sitting at 121,909.
After a Senate hearing investigating the impact of the reform delay revealed a growing home care waitlist, the government committed to the release of 20,000 extra packages ahead of 1 November, which it confirmed it had delivered this week.
The government also promised to release an additional 43,000 new Support at Home places – which makes up the remainder of the 83,000 promised new places under SaH – in the first half of 2026.
Minister for Aged Care and Seniors Sam Rae said that today marks the beginning of a new era for older Australians, and that with these reforms they are not just patching a broken system but fulfilling a promise to deliver dignity, choice and respect to the people who have spent their life contributing to their community.
“For decades, too many older Australians faced a system that treated them as passive recipients of care. Now we place them at the very heart of a rights-based system where their voice matters, where quality is non-negotiable and people can age with purpose and joy,” Mr Rae said.
“We are grateful to every older person, aged care provider, family member and advocate who helped us build this new system, and to the many nurses, care workers, administrators and families who will make it a reality. We know this is not the finish line of aged care reform, but what we deliver today is the foundation of a modern, sustainable system for generations to come.”
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