On the 13 February 2025, the Department of Health and Aged Care (Department) published the Stage 3 release of the Aged Care Rules 2025 (Stage 3 Rules) for consultation. The draft Stage 3 Rules contain some of the provider obligations imposed by Chapter 3 of the Aged Care Act 2024 (Cth) (New Act) and the strengthened Quality Standards (Standards). As foreshadowed by the Department, some of the provisions introduced in the Stage 3 Rules maintain the existing legislative framework without amendment, such as the Aged Care Code of Conduct. We provide an overview of the Stage 3 Rules.

• Conditions of Registration and Provider Obligations: Registered providers will have conditions on their registration and obligations set out in Chapter 3 of the New Act. The conditions of registrations and obligations that attach to a provider depends on their category of registration, and reflects the setting in which the provider operates, the services they deliver, and any risks of harm to individuals those services pose. For example, new registered providers may have different conditions imposed on their registration as compared to providers who have previously been registered. While conditions on registration and obligations may vary depending on registration category, there are certain conditions which apply to all registered providers. The Stage 3 Rules require all registered providers to demonstrate an understanding of the Statement of Rights, have in place practices to ensure they act compatibly with those rights (section 144-1 of the Stage 3 Rules)and must demonstrate the capability for, and commitment to, continuous improvement towards the delivery of high quality care (section 147-5 of the Stage 3 Rules).
• Strengthened Quality Standards: The Standards is one condition of registration that registered providers may need to comply with. Provider registration renewal and variation will be informed by an audit against the applicable Standards and a registered provider's broader performance. The Standards apply to registered providers based on the service types they provide under their registration category, as outlined below.

Quality Standard and application

Standards 1 – 4: Applies to providers registered into the ‘personal and care support in the home or community’ registration category (category 4)

Standards 1 – 5: Applies to providers registered in the ‘nursing and transition care’ registration (category 5)

Standards 1 – 7: Applies to residential aged care (category 6)

Commonwealth Home Support Program (CHSP) and National Aboriginal and Torres Strait Islander Flexible Aged Care Program (NATSIFACP): Currently, the obligations for CHSP and NATSIFACP providers are largely governed by individual grant agreements between the Department and the provider. These grant agreements are supplemented by guidance provided in program manuals published by the Department. Under the New Act, the regulation of CHSP and NATSIFACP will be detailed in the Rules and will continue to be supplemented by the program manuals and the grant agreements. As CHSP and NATSIFACP providers will be registered providers under the New Act, they will need to comply with any conditions of registration and obligations that apply to them (such as the Aged Care Code of Conduct).

Aged care worker screening: The Government is collaborating with states and territories to extend and ensure consistency in National Disability Insurance Scheme (NDIS) worker screening checks . In the interim, registered providers must continue to ensure that their aged care workers and responsible persons possess either a police certificate or an NDIS worker screening clearance. From 1 July 2025, CHSP and NATSIFACP providers must ensure their staff do not have police certificates recording serious offences, such as those involving death, sexual offences, or significant dishonesty, until NDIS worker screening checks commence in 2026. This represents a change for CHSP providers, who previously had discretion in assessing criminal history. For NATSIFACP providers, the change means that fraud-related offences previously directed at executive decision-makers are now regulated under enhanced suitability requirements for responsible persons under the New Act.

Notably, several provisions in the Stage 3 Rules are yet to be drafted. The remaining Rules are expected to be included in the Stage 4 Release, which is scheduled to be published in early March 2025. We recognise that providers are eagerly awaiting further information to assist with the transition period.

Our team is committed to keeping you updated as there are further developments. We have a range of resources to assist providers in transitioning to the New Act, including drafting updated agreements and frameworks.

If you have any questions or are interested in our resources, please don't hesitate to get in touch.