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December 2, 2025

Understanding the New Aged Care Act: What Changed on November 1

On November 1 2025, Australia's aged care system experienced a significant change for the sector, putting older Australians at the centre of their care. The new Aged Care Act 2024 commenced alongside the Support at Home program, making a historic shift towards a rights-based approach to aged care.

The new act underpins responses to 58 recommendations from the Royal Commission into Aged Care Quality and Safety, which found the previous system was no longer fit for purpose.

Here's what you need to know about the key changes.

A rights-based framework

The centre of the new Act is the legislated Statement of Rights, which places older Australians at the heart of the new aged care system. These rights are not just aspirational, but legal requirements that providers must uphold.

The Statement of Rights ensures that older people can:

  • Make decisions about their own lives and care
  • Be treated with dignity and respect, without discrimination
  • Receive safe, high quality care tailored to their individual needs
  • Stay connected to family, community, culture and Country
  • Access information and communicate in their preferred language
  • Raise concerns without fear

Aged care providers are now legally required to demonstrate they understand these rights and have systems in place to uphold them in all aspects of service delivery.

The Support at Home program

The new Support at Home program replaced the Home Care Packages Program and Short-Term Restorative Care Programme on 1 November 2025. The Commonwealth Home Support Program will transition no earlier than 1 July 2027.

How Support at Home works

The program provides coordinated services to help older Australians remain independent and at home for longer. Key features include:

  • 8 classifications to fund ongoing services
  • 3 short-term pathways to fund assistive technology and home modifications, restorative care and end-of-life care
  • 4 transitions Home Care Package classifications for equivalent level of funding for those who transitioned to Support at Home
  • Participant contributions set by government

Protection for existing recipients: those who were in the aged care system before 12 September 2024, will be protected and 'not worse off'. Those already receiving home care packages will automatically be transitioned with equivalent or greater funding and will not pay higher contributions than under the previous system.

For providers

The new Act introduced significant changes to how aged care providers are regulated, and include heavy focus on accountability, transparency and upholding the safety and rights of older Australians.

Provider registration

All providers must now register with the Aged Care Quality and Safety Commission before delivery government-funded aged care services.

The new registration model includes six registration categories based on service type and care complexity:

  1. Assistive technology and home modifications
  2. Goods and equipment
  3. End-of-life and restorative care pathways
  4. Personal and care support in the home or community
  5. Nursing and transition care
  6. Residential care

Registration must be renewed every three years, with providers required to demonstrate ongoing compliance with their obligations throughout this period.

Strengthened Quality Standards

The Aged Care Quality Standards have been strengthened to provide clearer expectations around person-centred, safe, high-quality care. Under the new standards, providers must:

  • Actively involve older people in planning and managing their care
  • Ensure all services align with the Statement of Rights
  • Implement robust governance structures and risk management practices
  • Maintain comprehensive complaints and feedback systems
  • Have systems in place to protect whistleblowers

Providers will also face enhanced governance requirements with new financial and prudential standards to demonstrate financial viability and comply with standards for managing deposits and bonds, greater associated provider responsibility where providers are legally responsible for services that are subcontracted, and stronger reporting obligations.

Regulatory oversight and enforcement

The Aged Care Quality and Safety Commission has enhanced powers to promote compliance and protect older Australians, including:

  • Risk-based monitoring and supervision of providers
  • Ability to impose tailored conditions and individual registrations
  • More flexible enforcement options
  • Powers to enter and inspect residential care homes without consent in certain circumstances
  • Strengthened powers to manage non-compliance and take enforcement action

The Act also establishes a new Independent Complaints Commissioner, providing and accessible and impartial system for addressing concerns. All providers must have formal complaints management in place, and older people have the right to escalate issues to the commission if not solved satisfactorily at the provider level.

What does this mean now

The new Aged Care Act represents a fundamental shift in how Australia approaches aged care. The people receiving the care will sit at the very centre of the sector. This legislation aims to make aged care safer, fairer and more respectful for the people for the people receiving the care.

While the Act commenced on 1 November 2025, its full implementation will continue to unfold as providers adapt their systems and the sector adjusts to new programs and obligations.

For more information about the new Aged Care Act, visit: https://www.health.gov.au/our-work/aged-care-act/

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