A year of uncertainty and reform Few years have tested the resilience of aged care providers like 2025.

The sector entered the year anticipating the commencement of the new Aged Care Act on 1 July 2025, only to face a significant delay that pushed the start date to 1 November 2025. While this deferral was welcomed by many, it also meant providers had to navigate months of uncertainty while continuing to stay compliant and deliver safe, high-quality care every day.

The delay was not without reason, the reforms introduced by the Aged Care Act 2024 are among the most comprehensive in decades. The Act replaces the long-standing Aged Care Act 1997 and introduces a modern, rights-based framework designed to put older Australians at the centre of care.

Key changes include:

• Statement of Rights: a clear articulation of the rights of individual’s receiving care, including rights to dignity, choice and respect
• Strengthened Quality Standards: updated standards that are more measurable and focused on outcomes for individuals
• New provider registration model: six registration categories aligned to service types, with conditions linked to risk and capability
• Support at Home program: a new approach to home care that consolidates existing programs and introduces updated funding and service classifications

These reforms are more than just new rules and regulations, they represent a cultural shift towards transparency, accountability and person-centred care.

Acknowledging the sector’s hard work

The delay gave providers time but it did not reduce the workload. In fact, many organisations used this period to accelerate their preparations towards the new regulatory model. Governance frameworks were reviewed and strengthened, service agreements were rewritten in plain English and staff were trained to understand and uphold the Statement of Rights and familiarise themselves with an entirely new Act and set of rules.

Providers also invested heavily in communication, explaining the changes to older Australians and their families, reassuring them that their care would remain consistent and that the reforms were designed to enhance their experience.

This commitment deserves recognition. Despite workforce pressures, financial constraints and the complexity and unexpected delays of the reforms, providers have demonstrated resilience and adaptability. Their efforts have ensured that when the Act finally commenced, the sector was ready to rise to the challenge and deliver care that meets the new standards.

What’s next under the new Act?

With the new Act now in force, the focus shifts from preparation to implementation. Providers must embed these reforms into everyday practice while continuing to deliver safe, high-quality care. The first priority is re-registration under the new model. While existing providers have been deemed registered in one or more categories, renewal applications will be required at the end of the registration period. These applications will involve demonstrating capability, financial soundness and compliance with the Statement of Rights and strengthened Quality Standards.

Another significant change is the introduction of audit fees and cost recovery by the Aged Care Quality and Safety Commission. Providers will now pay fees for registration applications, renewals and variations, unless a waiver applies. Where an audit is required such as confirming compliance with the Quality Standards, an audit fee will apply. This change reflects a broader move towards sustainability and accountability in the regulatory system.

Providers should also prioritise governance and compliance readiness, ensuring that policies, procedures and workforce training align with the new requirements. Maintaining accurate documentation and evidence of care will be critical for audit readiness. Finally, financial planning should account for the new cost recovery arrangements, including audit fees, to avoid unexpected budget pressures.

Looking ahead

The start of the new Aged Care Act marks an important milestone for the sector and for every person who receives care. It represents a shift towards dignity, transparency and respect in every setting, from residential homes to community care.

While reform takes time, the goal is clear; a simpler, safer and more person-focused aged care system that gives people real choice and control.

Providers, staff and communities have shown that change is possible when everyone works together. As this new chapter begins, aged care in Australia is better placed than ever to deliver care that older people and their families can truly trust.

 

Nicole Chen

Nicole is a Principal Consultant at Ideagen CompliSpace with a background in the healthcare industry across acute, aged and community services. Throughout her career, she has held various management and clinical positions, contributing significantly to both research and higher education within the sector. Nicole provides valuable knowledge and insights from both a clinical perspective and a nuanced understanding of the operational and strategic aspects of healthcare. She holds a Bachelor in Nursing, a Postgraduate Certificate and a Doctor of Philosophy (PhD).

 

 

Nick Edwards

Nick is a Legal Content Senior Associate at Ideagen CompliSpace. Nick has several years' experience designing and administering eLearning for the Aged Care Sector and holds a Bachelor of Laws from the University of Technology Sydney with First Class Honours.

 

Nadia Kamal

Nadia is a Senior Legal Content Operations Associate at Ideagen CompliSpace. She has several years’ experience working as an advocate and solicitor, as well as serving in in-house counsel roles. She holds a Bachelor of Laws (LLB Hons.) and a Master of Laws (LLM).