After much anticipation, the Aged Care Act 2024 (Cth) (Act) has commenced, switching on the new regulatory framework and obligations for providers and certain responsible persons.  

The operation of the Act is supported by the Aged Care Rules 2025 (Cth) (Rules) with the transition supported by the Aged Care (Consequential and Transitional Provisions) Rules 2025 (Transitional Rules). The Transitional Rules seek to preserve continuity. For example, the operation of access approvals, provider registration, banning orders, and any complaints or incident reporting lodged or under investigation by the Aged Care Quality and Safety Commission will carry across into the Act. However, there are several changes implemented by the Transitional Rules.

Impact of the Transitional Rules on existing clients.

• Support at Home: existing home care agreements automatically become ‘service agreements’. However, providers must vary existing agreements or enter into new ones to ensure they comply with the requirements in the Rules. This must be done within 30 to 90 days from the date Services Australia determines a participant’s contribution rate. Importantly, providers are not permitted to charge a participant’s contributions for the period between Services Australia advising the contribution rate and the date the new agreement is signed. During that time, providers must continue delivering services unless a security of tenure provision applies. 
• Residential care: existing residential care agreements also automatically become ‘service agreements’ and must be reviewed and varied, or new agreements entered into, as soon as practicable and within 12 months. Unfortunately, the Transitional Rules do not contemplate incoming residents who have been approved under the current framework but who commence receiving residential care services after the Transition Date. 
• Provision of information: providers must provide and explain the Statement of Rights and other general information to existing residents.
• Care plans: existing care plans automatically become ‘care and service plans’ and must be reviewed as soon as is practicable and within 12 months. If no plan is in place, then providers have 14 days to prepare one.
• Supporters and representatives: people recorded in MyAgedCare as representatives are deemed supporters at the Transition Date, continuing in effect until cancellation. Pending ‘relationships’ up to 30 days are treated as requests to register as supporters.

Impact of the Transitional Rules on existing services

• Associated providers: providers who subcontract any funded aged care services remain legally responsible for those services and the new Act applies to the provider as if the provider had delivered the services. As such, it is important to negotiate and enter into associated provider agreements which pass on all the relevant obligations to subcontractors. Importantly, subcontractors must ensure they are ready to meet the heightened regulatory obligations and consideration should be given to service delivery where an associated provider is unable to commence delivering services due to regulatory noncompliance.
• Associated provider notification: registered providers in category 4 (personal and care support in the home or community), category 5 (nursing and transition care) or category 6 (residential care) must notify the Commission of any changes to their arrangements with associated providers delivering services in those categories. This includes the start of a new arrangement, the variation, extension and the end of an arrangement.
• Pricing and information requirements: providers delivering Support at Home services must publish standard prices for certain service types on their website within 7 days and initial pricing information must have been reported to the System Governor by 8 November 2025.

If you have any questions about the new Act, Rules or Transitional Rules, please contact us.