Purpose of the Bill

The purpose of the Aged Care and Other Legislation Amendment Bill 2025 (the Bill) is to make consequential and transitional amendments to 26 Acts to bring Commonwealth legislation in line with  aged care reforms due to commence on 1 November 2025.

Structure of the Bill

The Bill comprises three Schedules.

Schedule 1 – Amendment of the Aged Care Act 2024

Schedule 1 provides for technical amendments and editorial corrections to the Aged Care Act 2024 (the new Act)  to ensure that the new Act supports intended policy outcomes.

Schedule 2 – Amendment of the Aged Care (Consequential and Transitional Provisions) Act 2024

Schedule 2 provides for technical amendments and editorial corrections to the Aged Care (Consequential and Transitional Provisions) Act 2024 to support transition from the existing system established under the Aged Care Act 1997 (the old Act) to that established under the new Act.

It also deals with the collection, use and disclosure of information acquired under the old law and allows the Minister, during the first 2 years of operation of the new Act, to make transitional rules modifying the operation of primary legislation to ‘ensure that continuity of care is maintained for older persons in the event of unforeseen or unintended circumstances arising during transition and implementation of the new rights based aged care system established by the new Act’ (Explanatory Memorandum (EM), p. 2). This type of provision is commonly known as a ‘Henry VII clause’, which often invites comment from the Senate Scrutiny of Bills Committee as a potentially inappropriate delegation of legislative power.

Schedule 3 – Amendments of other Acts

Schedule 3 makes consequential amendments to a range of Commonwealth legislation to reflect the upcoming repeal of the old Act and related legislation. These amendments ensure that legislation affected by the repeal of the old law reflect the concepts and terminology used within the new Act, and that references to the old laws are read as references to the new Act and associated legislative instruments.

Background

The Bill is intended to support major aged care reforms due to commence on 1 November 2025 by making amendments to the Aged Care Act 2024, the Aged Care (Consequential and Transitional Provisions) Act 2024 and other primary legislation relevant to the implementation of the reforms.

The aged care reforms are being made in the context of the Royal Commission into Aged Care Quality and Safety and the Aged Care Act 2024.

Royal Commission into Aged Care Quality and Safety (2018–2021)

The Royal Commission into Aged Care Quality and Safety (the Royal Commission) was established in October 2018 in response to public concern about issues with quality and safety in Australia’s aged care system.

The Royal Commission’s final report was published on 1 March 2021 with 148 recommendations, and found that the system failed to deliver consistently safe and dignified care, lacked transparency and accountability, and was difficult for older people to navigate. The final report recommendations detailed large scale reform options.

The Royal Commission was notable in that the two leading Commissioners did not reach consensus on all recommendations, particularly those relating to funding models and the configuration of the aged care regulator (Final Report, Vol. 1, p. 2). However, they were in agreement in recommending a new Aged Care Act that adopts a rights-based approach, placing people at the centre of the system (Final Report, Vol. 1, pp. 14, 35). Together the Commissioners recommended an overhaul of the legislative framework, including strengthened quality and safeguarding, and clearer responsibilities for providers and government.

For further details on the Royal Commission recommendations as related to the Aged Care Act 2024, please see the relevant Bills Digest.

Aged Care Act 2024

On 25 November 2024 the Aged Care Bill 2024 passed both Houses of Parliament, and received Royal Assent on 2 December 2024.

The Aged Care Act 2024 was originally scheduled to commence on 1 July 2025, however it was delayed to 1 November 2025 due to provider and community critique of readiness.

The passing of this amendment Bill is one of the preparatory steps for the government to complete before the Aged Care Act 2024 comes into force.

The Aged Care Act 2024 introduces a number of key changes to the aged care system, including:

• Embedding a rights-based foundation for aged care, including a legislated Statement of Rights that places older people at the centre of the system and guides all provider and regulator responsibilities.
• Establishing a single aged care assessment system that integrates existing programs and simplifies access, assessment, and service delivery pathways.
• Introducing new regulation and oversight arrangements, including the role of a System Governor with powers to manage provider registration, enforce quality and safety standards, and allocate places based on national planning and prioritisation.
• Commencing a refined co-payment funding model, retaining the Commonwealth as the primary funder of aged care services while introducing a refined means-tested user co-contribution system for everyday living and independence support services.
• Commencing new provider obligations for transparency and reporting under strengthened quality and safety standards.

Aged care reforms

Some of the reforms to aged care recommended by the Royal Commission and accepted by government were able to come into effect without legislative change, and have already commenced.

Select aged care reforms that commenced prior to the Aged Care Act 2024 include:

• October 2024: Mandatory residential aged care minutes increased to 215 minutes per resident per day. This includes 44 minutes with a registered nurse per day.
• January 2024: Interim First Nations Aged Care Commissioner started. This role will encourage culturally safe aged care for First Nations people across Australia.
• October 2023: Mandatory residential aged care minutes increased to 200 minutes per resident per day. This includes 40 minutes from a registered nurse.
• October 2023: Aged care providers are required to report information about their operations annually through the Provider Operations Collection Form. Submission starts in July and is due by 31 October each year. 
• July 2023: Office of the Inspector General of Aged Care established.
• July 2023: 24/7 registered nurse responsibility started, requiring a registered nurse to be on site and on duty in all residential aged care homes 24 hours a day, 7 days a week.
• May 2023: Complaints Commissioner in Aged Care Quality and Safety Commission started.
• December 2022: Code of Conduct for Aged Care launched to describe how aged care providers, their governing persons (for example, board members), and workers (including volunteers) must behave and treat people accessing aged care.
• December 2022: Strengthened provider governance put in place to improve leadership and culture, and increase transparency and accountability.
• October 2022: Australian National Aged Care Classification (AN-ACC) funding model started to ensure residential aged care funding meets the cost of caring for older people.

For the full list and further details please see the Department of Health, Disability and Ageing descriptions of the reforms achieve to date.

Policy position of non-government parties

At the time of writing, non-government parties and independents had not stated their position on the Bill.  

On the announced delay to the commencement of the Aged Care Act 2024, Shadow Minister for Health and Aged Care, Anne Ruston stated:

The decision to the delay the start date for the new aged care reforms is the right decision for older Australians, aged care providers and home care operators.

However, it is only necessary because the Government refused to listen to the concerns of the aged care sector and the Opposition…

In the last Parliament, the Opposition offered a sensible solution to the Government to implement a 12-month transition period, which would have allowed aged care providers, workers, and older Australians the time they needed to prepare for the Government’s significant package of reforms.

On the announced delay to the commencement of the Aged Care Act 2024, the Australian Greens party stated that:

Costs are going to go up for older people because of these changes, and while a deferral is welcome, we need to see a plan from the Minister to protect older people - because right now, there is none. 

Under the reforms passed by Labor and the Coalition, many older people will now be required to pay more without any enforceable rights to quality care.

Financial implications

The Explanatory Memorandum details financial implications for the amendments proposed to the Healthcare Identifiers Act 2010 by Schedule 3 to the Bill, and advises  that the Bill has no other financial implications (pp. 2-3).