Australian Government passes new Aged Care Act in Parliament

Key points:

• The new Aged Care Act Bill was passed today in Parliament which means changes to Australian aged care will soon be rolled out as expected
• In addition to the Royal Commission’s top recommendation, the passing of the aged care bill actions 57 other recommendations
• Representatives from aged care organisations such as the Council on the Ageing Australia and Catholic Health Australia emphasised the importance of the reform acceptance through Parliament on older Australians

The new Aged Care Act Bill passed today in Parliament helps ensure that older Australians will receive appropriate and improved aged care across the country.

As a result, the Australian Government has established a taskforce to confirm that changes in the aged care sector commence from July 1, 2025, as previously expected. 

Passing the new Aged Care Act was one of the Royal Commission’s recommendations, as were 57 other recommendations that have passed as a result. 

Minister for Aged Care Anika Wells praised the historic passing of the bill as reforms are now expected to transform the aged care sector and improve outcomes for older Australians.

“The new Aged Care Act is the final piece of the puzzle to create a better way of caring for older people both today and into the future,” she said.

“This process has been testament [sic] to our government’s unrelenting commitment to make positive, lasting change for older people who have spent their lives contributing to Australia.

“Now that we have followed through on our commitment to deliver a new Aged Care Act, it’s incumbent on all of us to live up to this promise and deliver meaningful change across aged care.

“We have established the Transition Taskforce to work with the sector in preparation for July 1 so we can all make the necessary changes to deliver better aged care.”

Changes to the current Aged Care Act are expected to include improved Aged Care Quality Standards and a more simplified pathway for older people to access the services they need. 

A new fee structure will see aged care recipients paying greater co-contributions for their care, except for clinical care which will be completely funded by the government.

Learn more about what’s happening and when in the new Aged Care Act and what else you can expect from the new Aged Care Act.

COTA Australia Acting Chief Executive Officer Corey Irlam emphasised that older Australians will benefit from an aged care reform to ensure their care is high-quality and affordable.

“It’s taken a long time to get here, but we finally have a new Aged Care Act in Australia – one that puts the needs of older people ahead of the needs of providers,” he said.

“Older Australians have been calling for a new rights-based Aged Care Act for a long time, so it’s fantastic to see it finally delivered.

“The Royal Commission into Aged Care that started six years ago recommended a new Aged Care Act was the foundation Australia needed to stop the neglect of older people in aged care. Today, we know on July 1 2025 that [the] foundation will officially be in place.”

Representatives from Catholic Health Australia, an organisation that provides aged care and community services, highlighted the positive impact of the bill on older Australians. 

Director of Aged Care Policy at Catholic Health Australia Laura Haylen praised the result and emphasised the importance of the reform for all older Australians, regardless of one’s location. 

“We welcome this seminal reform which will help deliver quality and sustainable aged care for all Australians, whether they live in a city, regional town or rural area,” she said.

“Aged care providers can now move to a sustainable footing and start to look at expanding operations where there is unmet need, particularly among vulnerable and marginalised communities.”

However, with the upcoming changes expected in the new Aged Care Act, Catholic Health Australia Director of Public Health and In-Home Support Policy Alex Lynch suggested that time will be needed to ensure the changes are rolled out effectively.

“Providers and older Australians will need time to adapt to the reforms in a staged way, particularly with regard to home care,” he said.

“We will continue to advocate for transitional arrangements through the Aged Care Transition Taskforce and consultation on subordinate legislation.”

The Aged Care Bill 2024 was introduced to the Parliament of Australia on Thursday, September 12, 2024.

The new Aged Care Act is expected to commence from July 1, 2025.

What are your thoughts on the new Aged Care Act?

Let the team at Talking Aged Care know on social media. 

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