What the New Aged Care Act Means for You

Overview of the Reforms

The new Aged Care Act represents the most significant overhaul of Australia's aged care system in decades. Born out of the Royal Commission into Aged Care Quality and Safety, this legislation replaces the Aged Care Act 1997 and fundamentally shifts the framework from a provider-centred system to one that places older people and their rights at the centre.

The Act was passed by Parliament in late 2024 and key provisions began taking effect from 1 July 2025, with further elements being phased in over subsequent years. For families navigating the aged care system, these changes bring both new protections and new considerations.

Key Changes for Residents and Families

The reforms introduce several changes that directly affect people receiving care and their families:

• Rights-based approach. The Act enshrines a Statement of Rights for older people, making it clear that entering aged care does not mean giving up your rights. Residents have a legal right to safe, quality care that respects their dignity, identity, and preferences.
• Duty of care on providers. Aged care providers now have an explicit legal duty to deliver safe, quality care. This strengthens accountability and gives families clearer grounds for complaint if standards are not met.
• Stronger complaints framework. The Act establishes more robust mechanisms for raising and resolving complaints, with greater protections for whistleblowers and residents who speak up.
• Support at Home program. A new unified home care program replaces the previous patchwork of Commonwealth Home Support Programme and Home Care Packages, aiming to make it simpler to access and navigate in-home support.

New Rights and Protections

The Statement of Rights under the new Act gives older Australians enforceable rights including:

• The right to safe, quality care and services
• The right to be treated with dignity and respect
• The right to have your identity, culture, and diversity valued and supported
• The right to live free from abuse, neglect, and exploitation
• The right to make informed choices about your own care
• The right to have your personal information kept private and confidential
• The right to access an advocate or support person to help you exercise your rights

These are not aspirational goals -- they are legally enforceable. The Aged Care Quality and Safety Commission has enhanced powers to take action against providers who fail to uphold these rights.

Changes to Funding and Pricing

The new Act also introduces changes to how aged care is funded and priced:

• New means testing arrangements. The way contributions are assessed has been updated, with changes to how the family home and other assets are treated in the means test. The aim is to make the system fairer while ensuring sustainability.
• Lifetime caps on contributions. There are now clearer limits on the total amount that residents can be asked to contribute over their lifetime, protecting against open-ended costs.
• Transparency in pricing. Providers face new requirements to be transparent about what is included in their fees and what constitutes an extra charge. This should make it easier for families to compare costs between facilities.
• Accommodation pricing. The RAD/DAP system continues, but with enhanced consumer protections around how deposits are managed and refunded.

For a detailed breakdown of current costs, see our guide to aged care costs.

Timeline of Implementation

The reforms are being implemented in stages:

If your loved one is already in care, transitional arrangements are in place to ensure existing residents are not disadvantaged by the change.

What This Means for Choosing Care

For families currently searching for aged care, the new Act brings several practical implications:

• Greater accountability. Providers have stronger legal obligations, which should drive improvements in care quality over time.
• Better information. Enhanced transparency requirements mean you should find it easier to get clear information about what services are included and what they cost.
• Stronger recourse. If things go wrong, the complaints and enforcement framework is more robust, giving families more confidence that issues will be addressed.
• Evolving landscape. As reforms continue to roll out, the aged care sector is still adapting. Some providers may be ahead of others in implementing changes. CareRank tracks these developments to keep our information current.

Further Reading

• How to choose an aged care home
• Understanding aged care costs
• Browse aged care facilities