Since the introduction of the Exposure Draft to the Aged Care Bill 2024, providers have refined their focus on their legislative obligations. While there have been moments of reform fatigue, we have seen a willingness and enthusiasm to meet the increased obligations introduced by the new Aged Care Act 2024 (Cth) (New Act). With only 60 days remaining until the commencement of the New Act, we are continuing to work with providers to enter their final preparations.
This update provides some key actions before the New Act comes into force, with reference to newly released resources and guidance material to support providers to meet their obligations.
Key action: Confirm registration status and conditions
What providers should have already done
Most providers will have received their deeming letters prior to July 2025. Providers should have reviewed their registration category (or categories) and the conditions attached to each.
What providers should be doing now
While deeming letters have been issued, providers should continue to engage with the Department of Health, Ageing and Disability (Department) to clarify registration conditions and understand the renewal timeline. This includes checking for any additional documentation required, confirming contact details are up to date, and preparing for future audits or compliance checks.
Providers should also review the Aged Care Quality and Safety Commission's updated fee structure which is set to commence alongside the New Act. The new fee structure includes a significant increase in registration and compliance fees. These changes may have financial and operational impacts, particularly for smaller providers or those operating across multiple categories.
Key action: Transition Support at Home (SAH) clients
What providers should have already done
Pricing structures should now be finalised, and the Department’s guidance on service delivery under SAH should be reviewed. Providers should have also:
- updated internal systems to support SAH reporting and compliance;
- reviewed client records to identify those transitioning from HCP; and
- drafted tailored communications to explain the changes to clients and their families.
What providers should be doing now
Providers should be actively supporting clients in their transition from HCP to SAH, ensuring discussions about the changes follow the Department's guidance. For example, providers must ensure participants understand that a minimum of 15 minutes of direct care management activity is required for each participant every month.
Providers are expected to be:
- finalising new service agreements;
- issuing updated pricing schedules; and
- supporting clients to understand the transition.
The latest national summary of Home Care Package (HCP) prices as at 30 June 2025 has been published, along with the updated pricing schedule. These resources are designed to help providers benchmark their pricing and prepare for the transition to SAH pricing.
Key action: Review and update policy documents
What providers should have already done
Providers should have conducted a gap analysis of existing policies and procedures to identify which documents require updating to reflect the New Act’s human-rights based framework.
What providers should be doing now
Policy updates should now be underway. Providers should ensure that revised documents are accessible and easy to understand, particularly for complex areas such as whistleblower disclosures. Notably, as all care workers will be able to receive whistleblower disclosures, providers will need to ensure staff are adequately prepared and understand their obligations. This includes updating induction materials, providing refresher training, and ensuring escalation pathways are clearly documented.
Key action: Update prudential compliance approach
What providers should have already done
Providers should have reviewed the updated Financial and Prudential Standards and be familiar with the changes, particularly those affecting the liquidity standard. They should also have made the necessary adjustments to reflect the increased maximum RAD price introduced on 1 January 2025.
What providers should be doing now
Providers should now be implementing changes to meet the new Financial and Prudential standards. This includes updating financial governance strategies, adjusting RAD registered to reflect retention requirements, and ensuring systems are in place for ongoing compliance. Providers should also review their financial risk management plans, ensure board oversight is documented, and prepare for reporting obligations under the new framework
Ongoing actions
Consultation with residents
Providers should begin engaging with residents and their families about the new rights and protections introduced under the New Act, including:
- explaining the Statement of Rights, which replaces the Charter of Aged Care Rights;
- informing residents about the new complaints pathway, including the role of the independent Complaints Commissioner; and
- discussing changes to fee arrangements, including the Higher Everyday Living Fee, new rules around fee bundling, and clearer refund obligations.
Staff training
Staff training should be ongoing and incorporate:
- the Statement of Rights;
- the delivery of high-quality care;
- the new statutory duties; and
- supported decision-making.
The Department has recently released a range of training videos designed to assist both new and existing aged care workers.
Providers should schedule regular training sessions, track completion rates, and incorporate scenario-based learning to reinforce key concepts. Training should be tailored to different roles and include practical examples of supported decision-making in action.
Consider governance and due diligence obligations
Boards and senior management should consider how they will discharge their statutory duties under the New Act, including oversight of care quality, financial sustainability, and compliance.
This includes reviewing board charters, updating risk registers, and ensuring governance frameworks reflect the new obligations. Providers should also consider appointing compliance leads and conducting regular board-level reviews of care quality and financial performance.
Registered supporters
The Department has recently released several resources to assist providers in preparing for the New Act. Among these are the registered supporter case studies, which offer practical examples of how registered supporters can assist older people to exercise their rights and make decisions.
Providers should consider how they will engage with substitute decision-makers and supporters across different states and territories, and tailor policies accordingly.
Notably, the Rules do not yet contemplate the full extent of the supporter role. We anticipate further detail to be released after commencement of the New Act.
Our team is continuing to support providers with tailored agreement templates, policy reviews, and training materials such as flowcharts and checklists to assist staff. If you have any queries or would like assistance with your transition planning, we would be delighted to hear from you.
