Chapter 1Introduction
1.1The Aged Care and Other Legislation Amendment Bill 2025 (the ACOLA bill) and the Aged Care (Accommodation Payment Security) Levy Amendment Bill 2025 (the Accommodation Payment Security bill) (together, the bills), were introduced by the Minister for Aged Care and Seniors, the Hon. Sam Rae MP (the Minister), to the House of Representatives on 24 July 2025.
1.2On 31 July 2025, the Senate referred the bills to the Community Affairs Legislation Committee (the committee) for inquiry and report by 21 August 2025.
Structure of the report
1.3This report contains two chapters. This chapter sets out:
the purpose of the bills;
background information relating to the Aged Care Act 2024 (the Aged Care Act, the new Act, the new Aged Care Act), the Royal Commission into Aged Care Quality and Safety (Aged Care Royal Commission), and government consultation;
an overview of the bills’ key provisions; and
general information outlining the conduct of the inquiry and other committees’ consideration of the bills.
1.4Chapter 2 outlines the inquiry participants’ key views on the bills and concludes with the committee’s view and recommendation.
Purpose of the bills
1.5The bills make amendments to existing legislation to support the commencement of the Aged Care Act,which is due to commence on 1 November 2025. The purpose of each bill is outlined in the following sections.
Aged Care and Other Legislation Amendment Bill 2025
1.6According to the Minister, the ACOLA bill makes ‘technical, transitional, and consequential changes’ to support the Aged Care Act’s commencement.
1.7The Explanatory Memorandum (EM) outlines that the amendments made by the ACOLA bill are:
… essential to support the seamless transition for individuals accessing aged care services from the system established under the old Act to the new risk-based regulatory model designed to encourage delivery of high quality funded aged care services by registered providers and increase provider accountability established under the new Act.
1.8As such, the EM describes the ACOLA bill as an enabler of the government’s aged care reform agenda, which responds to recommendations from the Aged Care Royal Commission.
Aged Care (Accommodation Payment Security) Levy Amendment Bill 2025
1.9According to its EM, the Accommodation Payment Security bill makes technical amendments to the Aged Care (Accommodation Payment Security) Levy Act 2006, as required due to the passage of the Aged Care Act.
1.10The EMelaborates that the amendments within this bill are necessary to ensure that the Aged Care (Accommodation Payment Security) Levy Act 2006 functions as intended and stated that there are no changes to the policy intent or affected provisions.
1.11Further, the EM outlines that if the amendments are not made, then provisions which reference the Aged Care Act 1997, as well as terms defined in the Aged Care Act 1997, would no longer function as intended.
1.12The EM states that this would consequently mean the ‘Accommodation Payment Guarantee Scheme would not be able to effectively levy aged care providers to recover lump sums of affected aged care residents’.
Background
1.13As mentioned above, the ACOLA bill makes technical, transitional and consequential changes to support the commencement of the new Aged Care Act on 1 November 2025, which forms part of the government’s response to the Aged Care Royal Commission. These matters are explored below.
Aged Care Act and Aged Care Royal Commission
1.14Established on 8 October 2018, the Aged Care Royal Commission inquired into the ‘quality of aged care services in Australia, whether those services were meeting the needs of the community, and how they could be improved in the future’.
1.15In its final report, tabled on 1 March 2021, the Aged Care Royal Commission found that for too long, legislation had focussed on the funding requirements of aged care providers rather than the genuine care needs of older people.
1.16The Aged Care Royal Commission stressed that a new Aged Care Act was needed and that it should be ‘based around the support and care needs of older people and their right to high quality and safe aged care’.
1.17Consequently, as mentioned by the Minister in his second reading speech, the Aged Care Royal Commission’s first recommendation was to develop a new Aged Care Act ‘to put rights of older people at the very centre of their care’.
1.18The Minister explained that the new Aged Care Act delivers on this recommendation and that the Act will establish a new rights-based framework for the delivery of aged care in Australia.
1.19In his second reading speech, the Minister further highlighted that the new Act puts the dignity of older Australia first and foremost within the Act’s statement of rights, which are underpinned by Australia’s obligations under the International Covenant on Economic, Social and Cultural Rights and the Convention on the Rights of Persons with Disabilities.
1.20The Minister stated that the ACOLA bill provides further support for the government’s ‘ambition to transform the experience of older Australians receiving care’.
1.21The Minister also noted that the government deferred the commencement of the new Aged Care Act, as well as the Support at Home program, as it was ‘appropriate to give more time for aged-care providers to prepare their clients, support their workforce and get their systems ready for change’.
Government consultation
1.22In its submission, the Department of Health, Disability and Ageing (the Department) noted that the bills accommodate feedback received through consultation conducted on the draft Aged Care Rules (the rules) between September 2024 and May 2025.
1.23It highlighted two examples within the ACOLA bill which responds to feedback received on the rules, which amend the new Act to:
remove the ability for the rules to prescribe caps for cleaning and gardening services,
remove the requirement for Higher Everyday Living Agreements to be in writing, giving the rules flexibility to prescribe specific circumstances where a written agreement is required (for example, planned on-going services, as opposed to ad-hoc services).
Financial impact statement
1.24The ACOLA bill’s EM outlines the financial impact of the amendments to the Healthcare Identifiers Act 2010 (Healthcare Identifiers Act). It noted that the government agreed to continue the Health Delivery Modernisation Program under the 2022–23 Budget, which provided $96.8 million over two years for Phase 3 ‘to deliver new digital health services and continue to modernise health payment systems’.
1.25The ACOLA bill’s EM explains that $3 million was allocated to the then Department of Health and Aged Care to review and modernise the Healthcare Identifiers Service and legislative framework.
1.26Additionally, $5.698 million was allocated to Services Australia in the 2024–25 Budget to enhance the Healthcare Identifier Service to support the proposed legislative changes in order to incorporate the care sector and health administration entities into the healthcare identifiers framework.
1.27The ACOLA bill’s EM advises that there are no other financial impacts.
1.28The Accommodation Payment Security bill’s EM indicates that there are no financial impacts.
Key provisions of the Aged Care and Other Legislation Amendment Bill 2025
1.29This section explores the key provisions of the ACOLA bill, which is comprised of three Schedules:
Schedule 1 – Amendment of the Aged Care Act 2024;
Schedule 2 – Amendment of the Aged Care (Consequential and Transitional
Provisions) Act 2024; and
Schedule 3 – Amendments of other Acts.
1.30Clause 1 provides the short title of the Act that would be enacted by the ACOLA bill, Clause 2 relates to the commencement of the ACOLA bill, and Clause 3 provides a technical provision that gives operational effect to the amendments contained in each of the Schedules to this legislation.
Schedule 1 – Amendment of the Aged Care Act 2024
1.31According to the ACOLA bill’s EM, Schedule 1 makes technical amendments and editorial corrections to the Aged Care Act 2024, which ensure that the new Act supports intended policy outcomes.
1.32The EM provides a broad outline of amendments under this Schedule, noting that the amendments provide for the following matters:
allow different subsidy calculators to be set out in the rules for cohorts of people who are already receiving funding under the aged care system, implementing the ‘no worse off’ principle
enable unspent funds accrued on behalf of older persons to remain available to them under the new system
provide for interim funding for services for older persons during high demand periods
mandate a review of the Aged Care Quality Standards every five years
ensure that compliance data, both current and historical, can be used to inform Star Ratings
provide authorisations for automation of decisions by Services Australia and the Department of Veterans’ Affairs related to means testing and subsidy calculations.
1.33This Schedule is comprised of two Parts. Key provisions within each Part are outlined below.
Part 1 – Amendments commencing immediately after the commencement of the Aged Care Act 2024
1.34Items 1–19 make various amendments to section 7 of the new Aged Care Act. For example, Item 1 repeals the current definition of ‘accommodation bond’ and substitutes it with a new definition, which will be prescribed by the new rules.
1.35The EM explains that the definition is to be prescribed by the rules as the requirements for accommodation bonds are mostly prescribed by the rules. It notes that this also ‘supports readability and ensures Government can respond quickly to changes in the community for these requirements’.
1.36The EM also states that this aligns with the drafting of the new Act, where the requirements for accommodation bonds are prescribed under section 287 of the Act.
1.37Item 6 repeals the existing definition of ‘available balance’ and substitutes it with a new one. The EM explains that:
The new definition provides that an available balance, at a time, for any of the following notional accounts, or for an unspent Commonwealth portion, means the sum of the credits that have been made to the account or portion at or before that time reduced (but not below zero) by the sum of the debits that have been made to the account or portion at or before that time:
a notional ongoing home support account;
a notional short-term home support account;
a notional service delivery branch account;
a notional assistive technology account;
a notional home modifications account;
a notional home care account.
1.38The EM notes that this amendment resolves an issue with the definition of ‘available balance’ not achieving the intended policy outcomes.
1.39Item 20 would repeal subparagraph 8(1)(g)(v), which pertains to the aged care service list. The EM states that this amendment would mean that the rules can never prescribe caps for services in a year, which would leave flexibility in the Support at Home program.
1.40Items 21–23 repeal and substitute various paragraphs and subsections, and Item 24 inserts five additional subsections at the end of section 15 to require periodic reviews of the operation of the Aged Care Quality Standards (the Standards) be undertaken.
1.41The EM explains that the five-year periodic reviews of the Standards are intended to include public consultation, and that following Ministerial consideration, a report on each review is to be published on the Department’s website.
1.42It notes that where a review leads to changes to the Standards, this would be subject to scrutiny through ‘the standard parliamentary processes’.
1.43Item 60 repeals and substitutes section 93, which relates to the method for place allocation, and Item 64 would require a registered provider to establish and maintain a refundable deposit register.
1.44Item 67 repeals and substitutes section 166 with new clauses 165A, 166 and 166B. These clauses relate to reports on reportable incidents, other reports by the registered provider and approved report forms.
1.45Item 69 inserts clause 178A, which outlines the offences that apply to a registered provider if there is a non-permitted use of an accommodation bond, and within five years of that use there is an insolvency event in relation to the corporation where there is at least one outstanding accommodation payment balance.
1.46The EM notes that contravention of the offence by an entity carries a maximum penalty of 300 penalty units and stated that the provision aims to:
strengthen consumer protections by securing the accommodation bonds that individuals pay to registered providers, and
ensure that refund obligations are met.
1.47Subclause 178A(2) provides that a person who is a responsible person of a registered provider (the entity) commits an offence if the entity uses an accommodation bond, and that the use is not permitted by rules made for the purposes of paragraph 287(3)(a) of the Act, and the responsible person:
knew that, or was reckless or negligent as to whether:
the accommodation bond would be used; and
the use of the accommodation bond was not permitted; and
was in a position to influence the conduct of the entity in relation to the use of the accommodation bond, and
failed to take all reasonable steps to prevent the use of the accommodation bond; and
at a particular time during the period of 5 years after the use of the deposit, an insolvency event (within the meaning of the Aged Care Accommodation Payment Security) Act occurs in relation to the entity, there is at least one outstanding accommodation payment balance for that entity, and
at the time the accommodation bond was used, the entity was a corporation.
1.48The EM states that contravention of the penalty by a responsible person carries a penalty of imprisonment for two years. It notes the importance of strong deterrents and emphasises that due to the severe consequences of not repaying accommodation bonds to older individuals or their estate, the penalty is appropriate.
1.49Further, subclause 178A(3) provides that strict liability applies to paragraphs (1)(d) and (2)(g). The EM outlines that strict liability is necessary to ensure registered providers and responsible persons foresee potential issues and actively mitigate against avoidable risks, and to ensure the integrity of the regulatory scheme and protect general revenue.
1.50Item 151 adds new subclause (3) to the end of section 239, which details the type of circumstances that can be prescribed for a provider-based supplement, and subclause (4), which provides that the Minister must be reasonably satisfied that additional funding will assist registered providers to improve, or maintain, compliance with:
a condition of registration under Division 1 of Part 4 of Chapter 3 that applies to those providers;
an obligation under Division 2 of that Part that applies to those providers.
1.51The EM explains that Item 165 repeals sections 250 and 251, and substitutes the following new clauses:
Clause 250, which addresses payment of subsidy;
Clause 251, which addresses claims for subsidy;
Clause 251A, which addresses subsidy amounts not payable to the extent of insufficient funds; and
Clause 251B, which addresses debiting of notional accounts and unspent Commonwealth portions.
1.52Item 202 repeals and replaces section 304, and provides that the rules may make provision for the circumstances in which an amount of refundable deposit may be refundable, and any other matters relating to the payment or refund or refundable deposits.
1.53Item 212 repeals subsection 314A(2) and substitutes it with a new subclause that specifies for the purposes of paragraph (1)(a), the System Governor must determine that the individuals has not ‘means not disclosed’ status if the individual is asked to provide specified information prescribed by the rules, with a specified period prescribed by the rules, and the individual fails to do so.
1.54The EM explains that this amendment is required to render provisions in relation to determinations of ‘means not disclosed’ status amenable to automation. It elaborates that the amendments will permit a determination for an individual in a home or community setting to be automatically applied to an individual if they fail to provide the specified information in the specified period.
1.55The EM notes that under subclause 314A(4), the status must be revoked by the System Governor if the individual has provided the information required.
1.56Similar amendments are made by Item 227, which repeals subsection 320(2) and substitutes with new subclauses 320(2) and 320(2A). According to the EM, subclause 320(2) specifies that:
… for the purposes of paragraph (1)(a) the System Governor must determine that the individual has means not disclosed status if the individual is asked to provide specified information prescribed by the rules within a specified period prescribed by the rules to assist the System Governor to determine the individual’s daily means tested amount, and the individual fails to do so.
1.57The EM elaborates that the amendment will permit a determination of means not disclosed status in residential care to be automatically applied to an individual if the individual fails to provide specified information prescribed by the rules within a specified period.
1.58The EM clarifies that under subclause 320(4), the System Governor must revoke the status if the individual has provided the required information.
1.59A strict liability offence is created by new subclause 343A(4). Subclause 343A(1) provides that the System Governor must issue an identity card to an approved needs assessor.
1.60Under subclause 343A(4), a person commits an offence of strict liability if:
the person has been issued with an identity card under subsection (1); and
the person ceases to be an approved needs assessor; and
the person does not return the card to the System Governor within 14 days after ceasing to be an approved needs assessor.
1.61The EM states that the penalty is 1 penalty unit. It further explains that the offence is intended to reduce the risk of misuse as approved needs assessors are integral to the System Governor’s determinations of classifications and funding and also hold positions of trust that allow access to vulnerable individuals.
1.62Item 262 amends subsection 541(4) by repealing the subsection and inserting new subclauses 541(3A) and 541(4). The EM explains that registered providers of aged care services in approved residential care homes are obliged to report information relating to the quality of those services to the System Governor.
1.63Subclause 541(3A) permits the System Governor to apply a low star rating to a residential care home if the provider does not report information relating to the quality of funded aged care services delivered in residential care homes in accordance with its obligations.
1.64Further, according to the EM, subsection 541(4) provides that the System Governor may use or disclose information for the purposes of:
creating information for publication under subsection 541(2); or
calculating star ratings for approved residential care homes.
1.65Item 268 provides that the System Governor may, in writing, delegate all or any of the System Governor’s functions or powers under this Act, other than Parts 2 to 9 of Chapter 6 (regulatory mechanisms), to the Chief Executive Centrelink.
1.66The EM notes that this delegation is required to enable Services Australia to administer the scope of services that it delivers in relation to the aged care system, and to enable a future change in the scope of services as agreed to by the Department. The EM further states this delegation includes delegation of automation of administrative actions by the System Governor to the Chief Executive Centrelink.
1.67Further, Item 269 provides that the Chief Executive Centrelink may, in writing, subdelegate the power or function to a person engaged (whether as an employee or otherwise) by Services Australia.
1.68Similar amendments are made by Item 272, 273, 276 and 279. Under Item 272, the System Governor may, in writing, delegate functions and powers to the Chief Executive Medicare, and under Item 273, the Chief Executive Medicare may, in writing, subdelegate the power or function to a person engaged (whether as an employee or otherwise) by Services Australia.
1.69Amendments under Item 276 provides legislative authority for the System Governor to delegate automated administrative actions to the Secretary of the Department of Veterans’ Affairs.
1.70Further, Item 279 provides that the System Governor may, in writing, delegate to the Social Services Secretary the System Governor’s powers and functions under Subdivision A, Division 2, Part 4 of Chapter 3 (obligations relating to reporting, notifications and information).
1.71Item 280 provides that the System Governor may, in writing, arrange for the use, under the System Governor’s oversight, of computer programs to take administrative action that must be taken by the System Governor under the Act.
1.72According to the EM, an ‘administrative action’ is any of the following:
Making, or refusing or failing to make, a decision under a provision mentioned in subclause (2A);
Exercising, or refusing or failing to exercising, a power under a provision mentioned in subclause (2A);
Performing, or refusing or failing to perform, a function or duty under a provision mentioned in subclause (2A);
Doing, or refusing or failing to do, anything (including giving a notice) related to making a decision, exercising a power or performing a function or duty test under a provision mentioned in subclause (2A).
Part 2 – Amendments commencing 1 July 2026
1.73Part 2 of Schedule 1 contains Items 301–304 and would make amendments to the Aged Care Act. Items 302 and 304 make amendments to paragraph 539(4)(d) and paragraph 598(2)(b) respectively, as the Military Rehabilitation and Compensation Commission will be merged into the Repatriation Commission through the operation of the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2024.
Schedule 2 – Amendment of the Aged Care (Consequential and Transitional Provisions) Act 2024
1.74The ACOLA bill’s EM outlines that Schedule 2 makes editorial corrections and technical amendments, and provides for several new matters:
authorising the collection, use and disclosure of relevant protected and personal information acquired under the Aged Care Act 1997 (old Act), the Aged Care Quality and Safety Commission Act 2018 (old Commission Act), Social Security Act 1991, Social Security (Administration) Act 1999, or in relation to grant-funded aged care programs to prepare for implementation of the new Act;
bringing the above information into the new Act’s information management regime; and
introducing a new time-limited rule making power which empowers the Minister, during the Act’s first two years of operation, to make rules modifying the operation of primary legislation.
1.75Schedule 2 is comprised of Parts 1–5, which are discussed below in further detail.
Part 1 – Amendments commencing immediately after transition time
1.76Items 1–3 make amendments relating to definitions, including defining ‘new law’, ‘old law’ and ‘Subsidy Principles’.
1.77Item 15 provides for the transition of approvals for individuals to access residential aged care between the old Act and the new Act. The EM expands that this Item provides a new power for the System Governor to determine, by legislative instrument, a transitional cohort of individuals for the purposes of subitem 3(1).
1.78The EM further notes that this Item provides for a flexible determination power to ensure classes of individuals that are eligible for forms of residential care under the Aged Care Act 1997, who are not contemplated in existing provisions, may continue to access care on and after transition.
1.79Item 20 would amend Schedule 2 to insert Part 3A, which provides for transitional provisions for Chapter 4 of the new Act. Included in Part 3A are six Divisions, as follows:
Division 1—Home care subsidy under the old law
Division 2—Subsidy for home support
Division 3—Unspent home care amounts
Division 4—Residential care subsidy under the old law
Division 5—Subsidy for residential care
Division 6 – Flexible care subsidy under the old law.
1.80The EM states that the new provisions broadly provide for subsidy claims, variations to those claims, and recovery of moneys related to aged care services that were delivered under the Aged Care Act 1997 to continue despite the repeal of that Act, in accordance with existing timeframes for such actions to be undertaken by approved providers.
1.81Item 24 inserts new clauses 52A and 52B after Item 52 of the Aged Care (Consequential and Transitional Provisions) Act 2024. Clause 52B relates to the modification of provisions pertaining to unauthorised use or disclosure of protected information.
1.82According to the EM, the clause amends the unauthorised use or disclosure of protected information so that persons who received protected information under the specified provisions of the old Act or Commission Act are subject to the protected information regime in the new Act. Additionally, paragraph 535(2)(e) is to be disregarded.
1.83The EM explains that this replicates the effect of the protected information offence provisions under section 86-5 of the old Act, and section 62 of the Commission Act.
Part 2 – Protected information
1.84Item 28 amends the Aged Care (Consequential and Transitional Provisions) Act 2024 to insert Schedule 4 – Special rules about provisions for information management for transitional purposes.
1.85The new Schedule has 10 Items. Key Items include Item 3, which authorises the collection, use or disclosure of certain information for transitional purposes, Item 5, which relates to notices to give information or produce documents required for the System Governor’s functions, and Item 6, which relates to a failure to comply with a notice. Subitems under Item 6 provide for a strict liability offence and a civil penalty provision.
Part 3 – Automation of administrative action
1.86Item 29 inserts Schedule 5 – Automation of administrative action. Item 2 under this Schedule provides the legislative authority for the automation of administrative action for transitional purposes under the Aged Care (Consequential and Transitional Provisions) Act 2024.
1.87Further, Item 3 under Schedule 5 provides oversight and safeguards for the automation of administrative action.
Part 4 – Modification of operation of Commonwealth aged care system during first 24 months
1.88Item 30 inserts Schedule 6 – Modification of operation of Commonwealth aged care system during first 24 months.
1.89Item 2 under this Schedule empowers the Minister to make rules which modify the operation of the aged care system during the first 24 months, beginning on the day after the rules are made or earlier if specified in those rules.
1.90The EM explains that this power will be used to ensure continuity and operability of care provider under the old and new law, despite the transition. It elaborated that this power serves as a ‘failsafe’ which empowers the Minister to act swiftly to address unintended or unforeseen circumstances.
1.91Additionally, the EM notes that the rule making power is intended to ensure that technical matters, which may be unrealised at the time of commencement, may be dealt with by the Minister in accordance with the expected outcome.
1.92Further, the EM states that any rules made through the exercise of this power are automatically repealed at the end of the 24 months after they are made, or at such earlier time as the rules require.
1.93The EM underlines that any legislative instrument made by the Minister is disallowable by Parliament, which ensures that there is appropriate Parliamentary scrutiny and oversight of any exercise of legislative power by the Minister.
Part 5 – Delegation
1.94Item 30 inserts Schedule 7 – Delegation. Items within Schedule 7 relate to the delegation and sub-delegation of functions and powers. For instance, the System Governor would have the ability to delegate their functions or powers to the Chief Executive Centrelink, Chief Executive Medicare, or to a person engaged by the Department.
Schedule 3 – Amendments of Other Acts
1.95The EM outlines that Schedule 3 includes provisions which make consequential amendments to a range a Commonwealth legislation to reflect the repeal of the old Act, Commission Act and the Aged Care (Transitional Provisions) Act 1997.
1.96The EM further explains that 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 law are read as references to the new Act and associated legislative instruments.
1.97This Schedule also includes amendments to the Healthcare Identifiers Act and amendments that impact the operations of the Inspector-General of Aged Care (Inspector-General). Key provisions related to both matters are discussed below.
Amendments to the Healthcare Identifiers Act 2010
1.98The EM states that amendments to the Healthcare Identifiers Act enable healthcare identifiers and other identifying information to be used for the delivery of health, aged care, and other support services, including disability services, and for health-related and health administration purposes.
1.99The EM also explains that accurate identification and matching of information to the right individual is ‘fundamental to an interoperable health system’ but notes that consultation revealed that healthcare identifiers are not being used to their full potential.
1.100It elaborates that the existing healthcare identifiers framework supports narrow health information sharing and clinical flows but does not clearly support the use of healthcare identifiers in the delivery and administration of health services.
1.101The EM concludes that the use of healthcare identifiers would benefit from expansion to support use across a wider range of support services and explained that the amendments to the Healthcare Identifiers Act address the current limitations of the healthcare identifiers framework.
1.102Item 110 amends the purpose of the Healthcare Identifiers Act to update the objectives of other amendments made by the bill, which is to correctly match information about both healthcare and support services provided to individuals.
1.103Multiple Items make amendments to definitions. For instance, the bill makes changes to the definition of ‘aged care’, ‘Aged Care Minister’, ‘aged care purpose’ and ‘contracted service provider’.
1.104Item 123 inserts definitions of a ‘funded aged care service,’ ‘health administration’ and a ‘health administration entity’. The EM notes that including a definition of ‘health administration entity’ is to facilitate such entities to collect, use and disclose healthcare identifiers and identifying information for relevant purposes authorised under the Act.
1.105It elaborates that health administration entities support the delivery, management, monitoring and oversight of health and support services, and noted that amendments will provide authorisation for healthcare identifiers to be used in relation to those activities.
1.106Item 137 provides the definition of support service, which means any of the following:
a funded aged care service;
a support or service provided by a registered National Disability Insurance Scheme provider under the National Disability Insurance Scheme Act 2013;
a support or service, or a support or service included in a 21 class of supports or services, prescribed by the regulations.
1.107The EM states that the definition applies so that certain aged care and disability service providers will be able to be assigned to a healthcare support service provider identifier and to collect, use and disclose healthcare identifiers in relation to the delivery of support services to healthcare recipients.
1.108The EM also explains that the ability to prescribe additional types of support services via delegated legislation will provide flexibility to include other supports and services in future where it would be appropriate for healthcare identifiers to be used in relation to those services.
1.109Item 139 provides the definition of health administration, which includes a range of activities that support the administration and delivery of health and support services, so that healthcare identifiers may be used by certain entities for the purpose of health administration.
1.110Item 153 inserts new clause 9CA to authorise professional bodies to facilitate the assignment of healthcare identifiers for individual healthcare providers. The EM explains that this means that the professional body can effectively apply for identifiers to be assigned on behalf of the individuals they represent.
1.111Item 167 amends the circumstances where an identified healthcare provider or health administration entity may collect a healthcare recipient’s healthcare identifier from the service operator.
1.112The EM explains that amendments under Item 169 have the effect of authorising identified healthcare providers and health administration entities to collect, use and disclose healthcare recipients’ healthcare identifiers and identifying information for a range of purposes.
Amendments relating to the Inspector-General of Aged Care
1.113Item 231 amends subsection 28(5) of the Inspector-General of Aged Care Act 2023. It changes the completion date from 1 March 2026 to 1 November 2027 for the Inspector-General of Aged Care’s review of the implementation of Aged Care Royal Commission recommendations.
1.114The EM explains that due to the delay in the new Act’s commencement, this amendment will provide the Inspector-General with appropriate time to gather sufficient evidence on the impact of the new Act to inform their review.
1.115Additionally, Item 251 amends subsection 220A(4) of the National Health Reform Act 2011 to include the Inspector-General in the list of agencies, bodies, or persons to which the Chair of the Independent Health and Aged Care Pricing Authority may, in certain circumstances, disclose aged care information, as well as healthcare pricing and costing information to.
1.116The EM notes that this change better enables the functions of the Inspector-General.
Key provisions of the Aged Care (Accommodation Payment Security) Levy Bill 2025
1.117Clause 1 provides the short title of the Act to be enacted by the bill, which would be the Aged Care (Accommodation Payment Security) Levy Amendment Act 2025.
1.118Clause 2 provides commencement details. The whole of the Act would commence at the same time as the new Aged Care Act.
1.119Clause 3 is a technical provision which would give operational effect to the amendments contained in each of the Schedules.
Schedule 1 – Aged Care (Accommodation Payment Security) Levy Act 2006
1.120This Schedule is comprised of Items 1–7. Items 1 and 2 amend section 5 of the Aged Care (Accommodation Payment Security) Levy Act 2006. Item 1 repeals the definition of ‘approved provider’, as required by the Aged Care Act 1997 due to this term not being used in the new Act.
1.121Item 2 inserts the definition of ‘registered provider’. According to the bill’s EM, this definition is the functional equivalent to the repealed definition of Approved Provider.
1.122Items 3–7 amend various sections and subsections of the Aged Care (Accommodation Payment Security) Act 2006 to substitute the term ‘approved providers’ with ‘registered providers’ to reflect updated and concepts and terminology within the new Aged Care Act. The bill’s EM stated that the intent and application of these sections is unchanged.
Compatibility with human rights
1.123Both bills contain a Statement of Compatibility with Human Rights, which are discussed below.
Aged Care and Other Legislation Amendment Bill 2025
1.124The ACOLA bill’s Statement of Compatibility with Human Rights (the statement) notes that the bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
1.125According to the statement, the ACOLA bill engages the following human rights:
the right to health in article 12 of the International Covenant on Economic, Social and Cultural Rights and article 25 of the Convention on the Rights of Persons with Disabilities (CRPD);
the right to privacy in article 17 of the International Covenant on Civil and Political Rights (ICCPR) and article 22 of the CRPD; and
the right to the presumption of innocence in article 14(2) of the ICCPR.
Right to health
1.126The statement explains that the ACOLA bill continues the work of the Aged Care Act ‘in supporting the right to health by providing technical amendments to the system of funded aged care services for individuals on the basis of need’.
1.127The statement also notes that the ACOLA bill’s amendments to the Health Identifiers Act would promote the right to health by including aged care, disability services and other support services within the healthcare identifiers framework.
Right to privacy
1.128The statement explains that the right to privacy under Article 17 of the ICCPR can be permissibly limited to achieve a legitimate objective and where the limitations are lawful and not arbitrary.
1.129Further, the statement explains that the protected information offence provisions in the Aged Care Act 1997 and the new Act support the right to privacy by providing restrictions and protections over how personal information that is required to support the aged care system can be used or disclosed.
1.130It also states that Item 37 and clause 52B support the right to privacy, and that Item 23 of Schedule 3 ensures that information can be used and disclosed in accordance with the information management regime in Chapter 7 of the new Act.
1.131Additionally, the statement outlines that technical amendments in the bill limit the right to privacy by authorising the use and disclosure of personal information for certain purposes.
1.132For instance, the statement highlights that clause 52 allows for the disclosure of information from the Independent Health and Aged Care Pricing Authority to the Office of the Inspector-General of Aged Care. It explains, however, that such disclosures are reasonable and proportionate in their effect, as they are limited to healthcare pricing and costing information and ensure adequate oversight over the aged care system.
Right to presumption of innocence
1.133The statement notes that the ACOLA bill’s offence provisions contain strict liability offences and civil penalties.
1.134It explains that the right to the presumption of innocence is engaged when legislation creates a strict liability offence, as the defendant may be found guilty, or an element of an offence may be proven against the defendant, without the prosecution being required to prove fault.
1.135The statement clarifies that strict liability offences are not necessarily inconsistent with the presumption of innocence where they are reasonable, necessary, and proportionate in pursuit of a legitimate objective.
1.136The statement notes that, for instance, subitem 35(1) of Schedule 3 creates a strict liability offence, and a civil penalty at (2). It states that the offence was considered against the Guide to Framing Commonwealth Offences, Infringement Notices and Enforcement Powers, and notes that the offence and standard of proof is consistent with comparable non-compliance laws and balances the regulatory prosecution burden with the limitation on liberty.
1.137As such, the statement explains that the offence is ‘reasonable, necessary and proportionate in pursuit of facilitating the transition to the new aged care system and allowing the continuity of aged care services to individuals’.
1.138Therefore, the statement concludes that the application of strict liability to this offence is not inconsistent with the presumption of innocence.
Aged Care (Accommodation Payment Security) Levy Amendment Bill 2025
1.139The Accommodation Payment Security bill’s statement also notes that this bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
1.140The statement further outlines that the Accommodation Payment Security bill does not engage any of the applicable rights or freedoms, and that there are no human rights implications contained within the bill.
Consideration by other committees
1.141At the time of writing, neither the Parliamentary Joint Committee on Human Rights Committee nor the Scrutiny of Bills Committee have considered the bills.
Conduct of the inquiry
1.142Details of the inquiry were made available on the committee’s website. The committee also contacted a number of organisations to invite them to lodge written submissions by 8 August 2025.
1.143The committee received 20 submissions, which are listed at Appendix 1 of this report.
1.144The committee held one public hearing in Canberra and via videoconference on 8 August 2025.
1.145A list of witnesses who gave evidence at the public hearing is available at Appendix 2.
Note on references
1.146References to Committee Hansard in this report are to proof transcripts. Page numbers may vary between proof and official transcripts.
Acknowledgements
1.147The committee thanks the organisations and individuals who contributed to the inquiry by making written submissions and appearing as witnesses at the public hearing.