Roadmap to reform: A practical guide to aged care reform readiness

The Department of Health, Disability and Ageing’s Provider Operational Readiness – Priority Actions List (v2.0, July 2025) serves as a critical blueprint for aged care leaders navigating this transition.

With the clock ticking, executives must rally their teams, realign operations, and engage residents and participants to ensure compliance and continuity of care. Here’s how leaders can steer their organisations through this pivotal change.

Engaging stakeholders: The heart of the transition

Effective communication with residents, participants, and staff is the cornerstone of readiness. By October 2025, providers must ensure their communities are informed and prepared.

For all providers, this means educating residents and participants about their enhanced rights under the new Act’s Statement of Rights and the introduction of a registered supporter role, which allows designated individuals to assist with decision-making. Sharing the Changes to Aged Care in Australia booklet is a practical first step to clarify these protections and changes to funding contributions. Leaders should also encourage clients to update their income and assets with Services Australia to align with new financial arrangements.

Home care providers face a particularly intensive engagement period. With the Support at Home program replacing HCP, leaders must meet with care recipients to review service agreements and care plans. The Department’s May 2025 letters to HCP recipients provide a foundation for these discussions. Resources like the Support at Home booklet (with a dedicated edition for Aboriginal and Torres Strait Islander peoples), the Support at Home fee estimator, and Frequently Asked Questions can demystify funding changes and ease concerns. These tools are essential for building trust and transparency.

CHSP providers must focus on ensuring all recipients are registered with My Aged Care and assessed by 31 October 2025. This is especially critical for Aboriginal and Torres Strait Islander recipients aged 45-49 experiencing homelessness, who risk losing eligibility for CHSP services if not registered by the deadline. The CHSP provider fact sheet offers clear guidance for compliance.

Regulatory and digital readiness

The transition to new registration categories through the deeming process requires providers to verify their details in the Government Provider Management System (GPMS) or via Funding Arrangement Managers. By April 2025, leaders should review the provider registration preview (PDF) and update inaccuracies, contacting [email protected] (mailto:[email protected]) for support. Similarly, ensuring accurate personnel and contact details in the Aged Care Gateway Service and Support Portal is non-negotiable.

Compliance with the Statement of Rights and Statement of Principles necessitates updates to policies, training, and ICT systems. Leaders should leverage the forthcoming provider obligations tool (due late July 2025) to identify specific requirements. The Aged Care Quality and Safety Commission (ACQSC) offers resources like the Financial and Prudential Standards guidance and the Strengthened Aged Care Quality Standards Readiness Checklist for categories 4, 5, and 6. Establishing comprehensive complaints and whistleblower systems, with guidance expected in July 2025, is another priority.

Digital transformation is equally critical. The Provider Digital Readiness Checklist and Guide to Digital Changes for Providers outline necessary updates, while providers must maintain accurate GPMS data via the Manage Your Organisation tile. New providers can refer to the GPMS provider registration guide for clarity.

Workforce Preparation

A well-informed workforce is vital for success. Leaders should distribute the Guide for Workers about the New Aged Care Act and ACQSC Reform Changes for Workers, reinforcing the Code of Conduct in Aged Care. Training is a cornerstone of readiness, with options including:

• Department eLearning for the new Act.
• ACQSC Strengthened Quality Standards training via the Aged Care Learning Information Solution.
• Support at Home training for home care staff.
• Equip Aged Care Learning Packages for diverse roles, from personal care workers to volunteers.

Regular team meetings and open channels for staff questions will keep morale high and ensure alignment with new requirements.

Financial and service adjustments

Residential care providers must update accommodation agreements to comply with the Act, incorporating Daily Accommodation Payments (DAP) indexation and Refundable Accommodation Deposit (RAD) retention.

From 1 November, the new Liquidity Standard requires quarterly liquid assets calculations, supported by the ACQSC’s liquidity calculator. Leaders should prepare to transition residents to the Higher Everyday Living Fee (HELF), phasing out extra service fees by 31 October 2026. Maintaining up-to-date claims with Services Australia and reporting for Q4 2024-25 and Q1 2025-26 is critical, as is aligning with the forthcoming Aged Care Service List.

Home care providers must complete the Support at Home Program Provider Transition Guide, using the Support at Home Program Manual and training modules to understand new care management responsibilities. By early November, updating service details in the My Aged Care Service and Support Portal is essential, with user guides available from 3 November 2025. Providers in categories 4 and 5 must also comply with Financial and Prudential Standards.

CHSP providers need to adapt to changes in service types, Data Exchange (DEX) reporting, and regulatory obligations. Signing the CHSP 2025-27 extension grant agreement ensures funding continuity from 1 July 2025. NATSIFAC and MPS providers should prepare for the phased rollout of First Nations assessment organisations from 1 July 2025 and use the Single Assessment System for assessments.

Post-implementation: November 2025 to December 2026

After 1 November, the focus shifts to sustaining engagement and compliance. Leaders should continue supporting registered supporters, promoting feedback channels, and monitoring First Nations assessment rollouts.

Residential care providers will implement RAD/RAC retention, DAP indexation (from 20 March 2026), and the new residential cost model. Home care providers must deliver care per updated plans, issue monthly statements, and verify service details in the Portal (3-7 November 2025). CHSP and NATSIFAC/MPS providers should ensure client eligibility assessments and maintain Portal updates.

Ongoing compliance involves adhering to registration obligations, maintaining incident management systems, and keeping digital records current. Workforce engagement remains critical, with regular training and communication to address challenges. Financial reporting for Q2 2025-26 and beyond will align with new structures, with guidance to follow.

Resources and support

Leaders can access a wealth of tools:

• Booklets: Changes to Aged Care in Australia and Support at Home resources.
• ACQSC Tools: Financial and Prudential Standards, Quality Standards Checklist, and sector readiness plans.
• Training: Department eLearning, ACQSC modules, and Equip packages.
• Support: My Aged Care helpline (1800 836 799) and Local Network teams.

The Path forwardAged care leaders must act now to prepare for 1 November 2025. Develop a tailored implementation plan, engage stakeholders with clear communication, and align systems with new standards.

By leveraging available resources and staying proactive, providers can not only meet compliance requirements but also enhance care quality in this transformative era.