Aged Care Act 2024: how providers can prepare

If you’re still catching your breath from the last round of aged care reforms, brace yourself – the biggest shake-up yet arrives in November 2025. 

The new Aged Care Act doesn’t just tweak the rules, it rewrites the playbook.

For aged care executives already managing workforce shortages, compliance pressures and financial strain, this reform may feel like one more hurdle.But seen through a strategic lens, it’s an opportunity to lift standards, modernise governance and rebuild trust in an industry that desperately needs it. 

Why it matters

The old Aged Care Act of 1997 was built around funding models and provider approvals. The new Aged Care Act turns that approach on its head, introducing a rights-based framework that puts older people at the centre. 

Deputy Commissioner of Regulatory Operations, Gary Rake, said the reforms represent an important change in regulatory oversight to better protect residents and support providers in delivering sustainable care and services into the future. 

“These new standards provide a clear and consistent framework for financial stewardship in the aged care sector,” Mr Rake said.

“They will help ensure that providers are managing resources responsibly, while giving older people and their families greater confidence in the services they rely on.”

Get financially ready for the new Aged Care Act

Aged Care Quality and Safety Commissioner Liz Hefren-Webb said the new financial and prudential standards will strengthen transparency, improve accountability, and promote the long-term sustainability of aged care providers across Australia. 

“The new financial and prudential standards will ensure that aged care providers are not only meeting their obligations to deliver high-quality care but are also financially viable and effectively managing the funds entrusted to them.” Ms Hefren-Webb said.

This financial focus ties closely to the reform’s broader aim: to ensure every dollar spent in aged care directly supports the wellbeing and rights of older Australians.

What’s changing

At its core is a new Statement of Rights, outlining exactly what every Australian can expect when receiving care.

This shift is supported by a streamlined Single Assessment System, clearer eligibility criteria (65+, or 50+ for Aboriginal, Torres Strait Islander, or homeless individuals), and a unified Support at Home program that brings together existing home and restorative care into one simple, flexible model.

Key structural changes include: 

• The system moves from a program-based, provider-focused model to a rights-based model centred on older people’s needs.
• A Statement of Rights is now built into the legislation, replacing the old standalone charter.
• Eligibility becomes consistent nationwide: 65+, or 50+ for Aboriginal, Torres Strait Islander, or homeless/at-risk individuals.
• A new Single Assessment System replaces multiple assessment pathways, with options for GP or urgent referrals and dedicated First Nations pathways.
• Existing programs – CHSP, Home Care, and Short-Term Restorative Care – merge into one Support at Home program (with CHSP transitioning in 2027).
• Funding will follow the person, not the provider, marking a major shift toward individual-centred care.

What boards and executive teams should prioritise now

As leadership teams prepare for the shift, here’s where to focus your operational energy in 2025.

With governance and compliance reforms central to the new Act, providers will transition to a new registration system under six categories, each with time-limited approval and regular audits. 

Quality Standards will expand to cover diversity, dementia care, clinical quality, food, and governance with financial reporting and board accountability under much closer scrutiny.

For CEOs, board directors and compliance leads, the new Aged Care Act means rethinking governance, workforce and financial reporting systems from the ground up.

Key priorities: 

• Review your registration status – ensure your organisation is ready to meet the new category requirements and time-limited renewals.
• Tighten governance – clarify board roles, strengthen oversight, and document risk management processes.
• Audit your data systems – confirm that care, workforce, and financial reporting can meet transparency and compliance demands. 
• Invest in workforce readiness – prepare for national screening, new training requirements, and rights-based care education.
• Refresh Quality Standards – align internal policies to new expectations for diversity, dementia care, nutrition, and clinical quality.
• Plan for regular audits – treat compliance as an ongoing process, not a once-a-year task.

Put simply: if your governance, data, or workforce systems aren’t airtight, now’s the time to act.

(Further reading on the Provider Operational Readiness can be found here.)

Resources to support your transition

While the scale of reform might feel overwhelming, the government has released a suite of practical tools to make navigating the reforms easier, including a priority action list, a guide to aged care law, a roadmap, and new eLearning for aged care providers. 

These resources are designed to help you understand the changes and implement them with confidence.

Key takeaways for leaders

For time-poor leaders, the message is simple. With the new Act taking effect in November, early action is essential. Start tightening systems, upskilling staff, and embedding stronger governance now. 

The path forward is clear: act early, stay informed, and lead the change. Those who do will help shape a stronger, fairer future for aged care in Australia.

For aged care executives, early action isn’t optional, it’s strategic. Providers that modernise governance and workforce systems now will enter the new era of aged care with stronger compliance, higher trust and a clear competitive edge.

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