Aged Care Bill Passes Parliament, to become Aged Care Act in 2025
On 25 November 2024, the Australian Government’s Aged Care Bill passed Parliament, introducing a new Aged Care Act that will take effect on 1 July 2025
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On 25 November 2024, the Australian Government’s Aged Care Bill passed Parliament. After Royal Assent, the new Aged Care Act will start from 1 July 2025.
The new Act responds to recommendations from the Royal Commission into Aged Care Quality and Safety which addresses the long-standing concerns about the sector. It focuses on creating a system that prioritises the rights, safety and wellbeing of older Australians.
What will change under the new Act?
The Aged Care Act introduces key reforms to improve aged care services:
- a Statement of Rights which puts the safety, dignity and respect of older Australians at the centre of care
- a new regulatory model and strengthened Aged Care Quality Standards, ensuring higher accountability for providers
- easier access to services to help older people and their families manage care options more effectively
The reforms also provide stronger protection for older people to raise concerns or complaints without fear of reprisal. Providers will be required to handle complaints promptly and transparently.
Implementation
The implementation of the Aged Care Act involves significant structural changes that require collaboration across the sector. The Department of Health and Aged Care has established a Transition Taskforce to guide providers, workers and advocacy groups in preparing for the reforms. The goal is to transition smoothly by 1 July 2025 with minimal disruption for participants and their families. Under the new framework, participants will move to a system with ten funding classifications, replacing the current four:
- Level 1: Basic care needs
- Level 2: Low care needs
- Level 3: Intermediate care needs
- Level 4: High care needs
This adjustment allows for a more personalised approach to care to make sure the support aligns closely with individual needs. The Support at Home Program further reinforces this objective by focusing on services that enable older Australians to live independently.
The Act’s funding reforms, developed in response to the Aged Care Taskforce, aim to stabilise the sector while encouraging innovation and quality improvement. Existing measures, such as 24/7 nursing in residential aged care, the Star Ratings system and capped management fees, complement these reforms by promoting transparency and higher standards across the sector.
Support at Home Program
The new Aged Care Act will also commence the Support at Home Program which replaces the existing Home Care Packages Program and the Short-Term Restorative Care Programme. This initiative is designed to help older Australians remain healthy, active and socially connected in their own homes for longer.
Key features of the program include:
- Upfront supports to help maintain independence, such as allied health services, assistive technology and home modifications
- New classification and budget levels tailored to better meet individual aged care needs
- Price caps and participant contributions set by the government to ensure affordability
An investment of $4.3 billion will create 300,000 additional home care places over the next decade, with around 1.4 million Australians expected to receive care at home by 2035.
What it means for older Australians
The new Aged Care Act represents a shift towards a more person-centred and flexible care system for older Australians. These changes reflect the government’s broader commitment to improving aged care by addressing existing gaps and laying the groundwork for a system that values the contributions of older Australians.
Minister for Aged Care, Anika Wells, described the reforms as a defining moment for aged care in Australia, calling it”a final piece of the puzzle to create a better way of caring for older people both today and into the future.”
“Now that we have followed through on our commitment to deliver a new Aged Care Act, it’s incumbent on all of us to live up to this promise and deliver meaningful change across aged care,” Wells said in the government’s media release.
Read more about the new Aged Care Act here.
Leora Healthcare’s Commitment
At Leora Healthcare, we support the creation of a more responsive, respectful and transparent system. We are committed to helping our clients work around these changes and benefit from the reforms designed to improve their care experience.
Contact us today to learn more about how Leora Healthcare can support you or your loved ones as we transition to this new era in aged care.