Provider insight: The key amendments made to the new Aged Care Act

The Department of Health and Aged Care has shared a summary of amendments to the new Aged Care Act, highlighting the main changes from its progression through parliament in late 2024.

Key points

• The Aged Care Bill 2024 was passed by parliament on November 25, 2024, before it became the Aged Care Act 2024 when it received Royal Assent by the Governor-General on December 2, 2024
• The Act will take effect from July 1, 2025, enshrining a rights-based model of care that empowers older people, a notable shift from the current Aged Care Act 1997 that is more provider-centric
• Notable changes include the requirement for the System Governer to provide quarterly reports, the removal of a quality care worker voice body and the sunsetting of restrictive practices immunity

This is the list of amendments revealed by the department:

Quarterly reporting of waiting periods for certain funded aged care services 

Parliament amended the Bill to require the System Governor, Blair Comsley PSM, to report quarterly to the Minister on waiting periods for certain services. Sections 338 and 342 of the new Act reflect this amendment. 

The report will include information such as the number of applications for non-specialist funded aged care for which a decision has not been made, average and median wait times and an assessment of the differences in time between application and the commencement of services. 

The System Governor must publish the report on the Department’s website as soon as practicable after it is given to the Minister.

Timeframes for Complaints Commissioner determinations

Parliament amended the Bill to ensure that the Aged Care Rules (the Rules) specify timeframes for handling certain complaints made to the Complaints Commissioner. This also includes preparing written statements (complaint determinations and giving complaint determinations to the person who made the complaint). Section 361 of the new Act reflects this amendment.

Fee Reduction Supplement applies to financial hardship 

Some members of the Community Affairs Legislation Committee recommended that the Bill be clearer about the definition of hardship and what supports are available to someone experiencing hardship. During the public submission process, some members of the public also raised this issue. 

Parliament amended the Bill to improve transparency for older people and mandate financial hardship as grounds to claim the fee reduction supplement. Sections 197 (home care), 214 (assistive technology), 223 (home modifications), and 231 (residential care) of the new Act reflect these amendments. 

The amended Act does not include a definition of hardship, only where it is applicable. 

Independent review of accommodation pricing 

Parliament amended the Bill to enforce a review of the Accommodation Supplement and the provision of a report to the Parliament. This must be done no later than July 26, 2026. Section 600A of the new Act reflects this amendment. 

Senate Committee review of Rules 

Parliament amended the Bill to refer any Rules related to certain provisions in the new Act to a Senate Committee for review. This must be done within three months of the Rules being tabled in the Senate. Subsections 602(12) and 602(13) of the new Act reflect this amendment. 

A report must be submitted to the senate ‘as soon as practicable after completing each review’. It must cover provisions such as the Code of Conduct, Quality Standards, restrictive practices, funding of aged care services and the meaning of reportable incident.

Sunsetting of restrictive practices immunity 

From December 1, 2026, the immunity in section 163 of the new Act, related to restrictive practices, will no longer apply. While the immunity at section 163 of the new Act is only intended to apply where restrictive practices have been used in a way that is consistent with the requirements under the legislation, this amendment signals the current arrangements are a temporary measure, subject to State and Territories implementing compliant legislation. 

This amendment ensures that providers must comply with both the requirements of the new Act and any other relevant state and territory laws. This will ensure that restrictive practices are only used where necessary and proportionate, and only in specific circumstances. Section 163 of the new Act reflects this amendment. 

Providers will not have immunity from civil or criminal liability in relation to the use of a restrictive practice from December 1, 2026. Immunity prior to that date will only apply if informed consent is provided. 

Refundable Accommodation Deposit (RAD) retention amount 

Parliament amended the Bill to cap the deductions that a provider can claim from a RAD each year. Section 308 of the new Act reflects this amendment. The new Act also includes an additional subsection to ensure that providers must not deduct a RAD retention amount greater than 2% in any year.

The Act declares that providers cannot deduct a retention amount more than once in any one month period, or after the five-year period from when the RAD was first paid is complete. 

Statement of Rights

Parliament amended the Statement of Rights contained in the Bill to allow that an individual has a right to access, at any time, a designated person of their choice or one nominated by an appropriate authority. Subsection 23(13) of the new Act reflects this amendment. 

Review of the legislation 

Parliament amended the Bill to bring forward a review of the new Act from five years to three years from commencement. Section 601 of the new Act reflects this amendment. The review must be conducted within six months of July 1, 2028.

Worker voice

 Parliament amended the Bill to remove reference to the ‘worker voice’. The amendments remove a condition of registration that a provider must offer their workforce the opportunity to establish a quality care worker voice body. Section 158 of the new Act reflects this amendment. 

No worse off principle 

Parliament amended Chapter 4 to allow for the Rules to advise different methods or requirements for the calculation of

• Subsidies
• Individual contributions
• Accommodation payments
• Means testing. 

Older people approved for home care on or before September 12, 2024, or who entered permanent residential care prior to the commencement of the new Act are exempt from some of the new funding arrangements. T

he amendments also ensure that unspent home care funds paid under the existing Act can be used or returned to the Australian Government under the new Act. These amendments ensure individuals approved under existing arrangements should generally not pay more for their care under the new Act. 

Caps on cleaning and gardening 

Some changes were announced during the parliamentary process to remove caps on cleaning and gardening under Support at Home. This will help older people to retain their independence at home. This is covered in the Aged Care Service List in the Rules, which outlines the services available under the new Act.

Click here to read the new Aged Care Act in full. You can use the search function to find the sections mentioned in this article.