By Penelope Eden and Jonna-Susan Mathiessen -
Snapshot
- The new Aged Care Act 2024 (Cth) introduces long-awaited and comprehensive reforms to Australia’s aged care laws which shift the legislative focus from the payment of subsidies to the rights of those receiving services.
- While the reforms represent a significant advancement, the absence of a timeline for the finalisation of the subordinate Aged Care Rules 2025 stands as a practical challenge for providers and legal practitioners in preparing for and advising on the transition and new obligations.
- This article will outline the key incoming changes and discuss best practice approaches to adapting to the challenges of the new aged care landscape.
In 2021, the Royal Commission into Aged Care Quality and Safety (‘Royal Commission’) delivered its final report (‘Final Report’), making several findings about the quality of Australian aged care services and how they ought to be improved. Inter alia, the Final Report found the Aged Care Act 1997 (Cth) (‘current Act’) was not fit for purpose. According to the Final Report, the current Act—which is supported by approximately 14 subordinate principles (‘current principles’)—focused on the funding of aged care providers rather than prioritising ‘the rights of older people to the care that they need’ (at 32). This highlighted the need to rethink the entire framework and develop a ‘rights-based approach’ to care (at 79).
Unsurprisingly, the first recommendation of the Royal Commission was for the Commonwealth government to develop a new Act ‘based around the support and care needs of older people and their right to high quality and safe aged care’ (Final Report at 32). The Aged Care Act 2024 (Cth) (‘new Act’) responds to this recommendation by creating a rights-based legislative framework where the needs of older Australians are placed at the centre of the aged care system. The new Act will be supported by the Aged Care Rules 2025 (Cth) (‘Rules’), which will replace the current principles. For a useful overview of the Rules, see the Department of Health, Disability and Ageing’s (‘Department’) consultation on the Rules.
