The Government have introduced the Aged Care and Other Legislation Amendment Bill 2025 (ACOLA Bill) and Aged Care (Accommodation Payment Security) Levy Amendment Bill 2025 (Levy Bill) to Parliament. Together, the Bills will support the implementation of the new Aged Care Act 2024 (Cth) (New Act) scheduled to commence on 1 November 2025.
The ACOLA Bill introduces over 300 technical and consequential amendments to the New Act to support a smooth transition to the new rights-based aged care system. The amendments aim to strengthen regulatory oversight, enable automation of administrative processes, and improve protections for individuals accessing the aged care system. The Levy Bill complements the ACOLA Bill by ensuring the continued operation of the Accommodation Payment Guarantee Scheme, which protects residents’ lump sum accommodation payments. We provide an overview of the key amendments in the ACOLA Bill below:
- General amendments: The ACOLA Bill introduces a series of amendments to align current aged care laws with the New Act. It carries over existing requirements, such as maintaining a refundable deposit register and penalties for misuse of accommodation bonds, into the new legislative framework.
- Subsidy provisions: Amendments to provider-based subsidies have been introduced to ensure providers continue to deliver high-quality care and meet increasing care minute targets whilst maintaining a sustainable aged care system.
- Other amendments: The ACOLA Bill also provides for the continuation of accommodation bond arrangements for people who entered care before 2008.
The Department of Health, Disability and Ageing (Department) also recently released a summary of key changes to the Aged Care Rules 2025 (Rules), reflecting feedback received during public consultation on the Rules between September 2024 and May 2025. We provide an overview of some of the key changes to the Rules below:
- Definitions: The term ‘representative’ has been removed from the Rules, with older people now able to register supporters via MyAgedCare. The definition of 'allied health professionals' has been broadened to include all regulated practitioners, including those not regulated by the Australian Health Practitioner Regulation Agency to ensure broader inclusion across the aged care workforce.
- Service list: In response to concern in the sector, hourly caps on domestic services such as house cleaning and gardening have been removed, and a new category 'Loanable equipment and products' has been added under service group 'assistive technology', enabling access to the Assistive Technology Loan Scheme.
- Delivery of funded aged care services: The cooling-off period for Higher Everyday Living Fee Agreements has been extended from 14 to 28 days. Where service delivery extends beyond this 28-day period, providers may recoup costs.
- Fees and payments: The New Act establishes limitations on the maximum amount of daily accommodation contributions and the Rules now clarify that these caps will only apply to post-2014 residents who move to a new residential care home after the transition date. Changes to the Higher Everyday Living Fee (HELF) include clearer entry conditions, simplified termination and variation processes, and provisions for cost recovery. HELF can now be charged alongside fee reduction supplements and bundled with other services. Relevantly, providers may increase Extra and Additional Service Fees during the transitional period.
- Funding and subsidy adjustments: The Care Management Supplement which is available for certain individuals accessing aged care services and provides an additional 12 hours per year of care management activities, is set at $360 per quarter, equivalent to three hours of care management at $120/hour.
- Enhanced transparency and access to information: Monthly statements must now include changes in contribution amounts following means testing and individuals receiving support at home, restorative care, or end-of-life services must be informed of the total hours or units of care management delivered.
The Department confirmed the final Exposure Draft of the Rules will be released in the coming weeks and will not be open to further consultation but, rather, is intended to assist providers in preparing for the commencement of the New Act.
Providers should consider the ACOLA and Levy Bills alongside the summary of the key changes to the Rules to ensure readiness for the 1 November 2025 transition to the new Act. For support with this transition, please contact us.
