Breaking news: Government delays new Aged Care Act until November 1, 2025
Published on 4 June 2025 (Last updated on 5 June 2025)
The Department of Health, Disability and Ageing is delaying the new Aged Care Act, making the sudden revelation at the Ageing Australia Victoria State Conference on Wednesday morning.
With four weeks until the expected 1 July commencement date, the new Act will now come into effect from 1 November, 2025.
In a pair of open letters from the new Minister for Aged Care and Seniors, Sam Rae – one to providers and one to older people – he said the extra time will allow providers to prepare their clients, workers and systems, while older people can better understand the incoming changes to make informed decisions about their care.
“I have spent my first three weeks as your Minister listening to older people, their families and carers, aged care providers, workers and others in the sector who have generously shared their views and feedback with me. I am privileged to be taking on an immensely important job,” Minister Rae said.
“You have told us you need more time to prepare your clients, support your workers and get your systems ready for the transition to the new Aged Care Act.
“In order to deliver on the intent of these reforms and following careful consideration, the Australian Government has decided to briefly defer the start of the new Act from 1 July 2025 to 1 November 2025.
“We will use this extra time to work with you to:
- help prepare older people for the changes
- finalise key operational and digital processes
- produce implementation guidance and training.”
The Minister for Health and Ageing, Disability and the National Disability Insurance Scheme, Mark Butler, added that the delay will ensure that all operational, digital and legislative pieces are in place before the rollout starts.
“This brief deferral allows providers to train their staff and have conversations with their clients, get their IT systems ready and prepare operations for an orderly transition,” he said.
Ageing Australia congratulated the government on the decision, emphasising that it has been advocating for months for sensible implementation timelines, to ensure smooth transition for older people and providers.
“This decision is the result of months of intense discussions and calls for practical timelines for the sector. We know that rushed reforms would put levels of care at risk for older people,” Ageing Australia CEO Tom Symondson said.
“We applaud the Government for listening to the concerns of the aged care sector and putting the needs of older Australians first.
“We fully support the new rights-based Aged Care Act, but the simple truth is we’re not ready to introduce all the sweeping reforms by 1 July. Providers have been working around the clock to ensure a smooth transition, but we just haven’t received all the information we need in order to proceed.
“The additional time will give us the critical space we need to finalise agreements, systems, and processes.
“This is a win for the 1.4 million older Australians, who rely on aged care. We need to do this reform once and do it right. We hope this extension will help us get closer to that goal,” Mr Symondson added.
Minister Rae added that he is committed to building on the work the government and sector has done so far to improve aged care.
The delay will also result in Support at Home coming into effect from 1 November, in line with the Act. No details around the Strengthened Quality Standards or new Quality Indicators have been released.
Minister Rae added, “The brief deferral will ensure older people accessing home care services continue to receive safe, quality care and have the time to understand the Support at Home changes, including:
- service agreements and care plans
- service lists, prices and contributions to non-clinical services.
“It will also allow for Parliament to consider an amendment Bill that will set up the final details of the Aged Care Rules and enable effective operation of the new Act.
“We share a commitment to getting these once-in-a-generation reforms right to build a high-quality, sustainable and world-class aged care system for all Australians.
“I will work hand-in-hand with you, your workers and older people to get the new Act implementation right for all.”