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