On 1 November 2025, Australia’s aged care landscape will fundamentally change. After decades under the Aged Care Act 1997, the sector will adopt a new legal framework under the Aged Care Act 2024. This change responds to the Royal Commission into Aged Care Quality and Safety. The Commission exposed systemic neglect, under-regulation, and a failure to prioritise the rights and safety of older people.
The new legislation repeals the Aged Care Act 1997, the Aged Care (Transitional Provisions) Act 1997, and the Aged Care Quality and Safety Commission Act 2018. It consolidates and modernises aged care law into a single statute focused on rights-based care.
The Catalyst for Reform: The Royal Commission’s Legacy
The Royal Commission’s final report, released in March 2021, described a system in crisis. It found the system was under-resourced and inconsistent in quality. The report noted that funding processes were prioritised over the dignity of older Australians. Recommendation 1 called for a new Aged Care Act. The new law would be grounded in human rights, equity, and transparency. The Aged Care Act 2024 was passed in November 2024. It will legally commence in November 2025. The Act implements Recommendation 1 in full. It embeds rights, accountability, and fair access at every level of care delivery.
A Legally Enforceable Statement of Rights
The Statement of Rights is at the heart of the new law. It is codified in section 23 of the Aged Care Act 2024. These rights are not just policy statements. They are legally binding and must be upheld by providers and workers. The rights include autonomy in daily life and care decisions. They include access to culturally safe and trauma-informed services. It also includes services free from discrimination, neglect, or abuse. These ensure they remain connected to family, community, pets, and culture. For Aboriginal and Torres Strait Islander people, this includes connection to Country and Island Home.
Unlike the former Charter of Aged Care Rights, which was a condition of funding but not directly enforceable, the Statement of Rights carries legal weight. Providers must not only understand these rights but demonstrate practical systems and policies that ensure care delivery aligns with them. For example, if an aged care home disregards a resident’s wish to observe cultural or religious practices or fails to provide interpreters for non-English speaking residents, it may be in breach of the Act.
A Simplified Access and Assessment Pathway
Under the current system, older Australians must navigate multiple access points and assessments depending on whether they seek home care, residential care, or other support services such as those under the Commonwealth Home Support Programme (CHSP). This duplication causes delay, confusion, and inequity.
The new Act introduces a Single Assessment System, outlined in Chapter 2. All older Australians will be assessed through one streamlined process. This applies regardless of the type of care they need. The assessment must be equitable and culturally appropriate. It must account for past trauma, cultural background, and cognitive impairment. This includes conditions such as dementia. The law imposes specific legal obligations to ensure this approach. The reform is significant for Aboriginal and Torres Strait Islander peoples. It also benefits culturally and linguistically diverse Australians. These groups have historically faced barriers in accessing aged care services.
New Rules for Providers and the Role of the Regulator
Chapter 3 permits only organisations formally registered with the Aged Care Quality and Safety Commission (ACQSC) to provide government-funded aged care. The Commission scrutinises governance structures, financial integrity, workforce capability, and the provider’s demonstrated commitment to the Statement of Rights during registration.
Conditions of registration will bind registered providers, who must comply with the updated Aged Care Quality Standards. The Commission is revising these standards to reflect the new rights-based model. The standards require providers to deliver person-centred care, ensure continuous improvement, and engage appropriately skilled staff.
The Act strengthens the powers of the Aged Care Quality and Safety Commissioner, who now has explicit authority to monitor compliance, issue directions, compel corrective action, impose civil penalties, and, in severe cases, revoke a provider’s registration. Aged care workers are also bound by the Code of Conduct for Aged Care, enforceable by law.
For example, if a provider fails to address systemic issues such as understaffing, poor nutrition, or unsafe restraint practices, the Commissioner may issue a compliance notice under Chapter 6, seek enforceable undertakings, or initiate deregistration proceedings.
Funding, Contributions and Transparency
Critics have long condemned the previous aged care funding model for its opacity, unpredictability, and complexity. Chapter 4 of the new Act establishes a more transparent structure. It separates clinical care, now fully government-funded, from daily living and accommodation costs, which may attract means-tested individual contributions.
The Act introduces a means-tested care contribution regime. Older people may contribute toward non-clinical services based on income and assets. These services include meals, cleaning, and recreation. Contributions are subject to a daily cap and a lifetime cap. The lifetime cap is $130,000 or four years of payments, whichever comes first. This protects individuals from indefinite out-of-pocket expenses and promotes fairness across the system.
The Refundable Accommodation Deposit (RAD) remains, but with the reintroduction of a limited retention amount, a provider may retain up to 2% per year (capped at 10%) of the RAD after five years or more. This funding mechanism is intended to support infrastructure costs while maintaining a fair refund process.
Crucially, for residents already in care before the new Act commences, the transitional provisions under the Aged Care (Consequential and Transitional Provisions) Act 2024 ensure that they will not be worse off. These individuals may remain on their existing fee and service arrangements unless they opt into the new system.
Whistleblower Protections and Complaints Handling
The new Act introduces, for the first time, robust whistleblower protections under Chapter 7. Any person such as a resident, family member, carer, or worker may make a report about suspected breaches of the Act or misconduct in aged care services. Reports can be made anonymously to the provider, the Commission, the Department of Health, or even to the police.
Under the new protections, whistleblowers are legally shielded from retaliation, dismissal, or discrimination. The Act further requires providers to maintain effective, accessible complaints mechanisms that enable timely and fair resolution. If providers cannot resolve complaints internally, complainants may escalate them to the Complaints Commissioner. The Commissioner now operates independently and holds authority to investigate and enforce outcomes.
These mechanisms are vital to ensuring that poor care is addressed early. In the past, families and staff often feared raising concerns; under the new system, legal protections remove that barrier.
Support for Decision-Making
Recognising that older people may at times need assistance to navigate the system without surrendering autonomy, the Act introduces a registered supporter role. Unlike a guardian or substitute decision-maker, a registered supporter’s role is to assist not override decision-making. Older people retain full legal capacity unless a finding determines otherwise. They may designate supporters through My Aged Care before 31 October 2025 or appoint them after that date.
This model is grounded in supported decision-making principles. It aligns with Australia’s obligations under the UN Convention on the Rights of Persons with Disabilities. It ensures dignity and choice remain intact. This applies even in situations involving vulnerability or cognitive decline.
Looking Ahead
The Aged Care Act 2024 overhauls how care is conceptualised, delivered, and monitored through a values-driven approach, not just a regulatory reset. It demands higher standards, enforces accountability, and embeds rights in a way the previous framework never did.
For individuals and families, the Act offers new clarity and recourse. If your loved one enters care, the law now assures their rights and provides a clear pathway for redress if providers breach them. If you provide care, the law imposes a greater compliance burden and raises expectations for quality, transparency, and ethical governance.
At our firm, we help families review aged care agreements and resolve disputes with providers. We assist in understanding funding contributions and lodging complaints where needed. If you are navigating the aged care system under the new legal regime, we can help. Our goal is to ensure the law protects the dignity, wellbeing, and rights of older Australians.
Jake McKinley notes that this article is written for the purpose of providing generalised information and not to provide specialised legal advice. If you require qualified legal advice on anything mentioned in this article, our experienced team of solicitors at Jake McKinley are here to help. Please get in touch with us on 02 9232 8033 today to make an enquiry.
