The Biggest Reform to Australian Aged Care in a Generation
On 1 November 2025, the most sweeping overhaul of Australia’s aged care system in nearly three decades took effect. The Aged Care Act 2024 replaced laws that had governed the sector since 1997, and for the first time in Australian history, the rights of older people in government-funded care became legally enforceable. The Australian Parliament passed the Aged Care Act 2024 as the new law for government-funded aged care on 25 November 2024, with the new Act starting on 1 November 2025 alongside the launch of the new Support at Home program.
But the reform agenda doesn’t stop at commencement. 2026 brings additional obligations, pricing changes and accountability measures that providers and consumers need to understand. Here is a breakdown of the key changes.
1. A Legally Enforceable Statement of Rights
One of the most significant shifts in the new Act is its rights-based foundation. The new Act introduces a Statement of Rights, which outlines the rights of older people when seeking or accessing government-funded aged care services. It includes rights such as independence and autonomy, respect for privacy, safe and quality care, and the right to raise issues without fear of reprisal. Aged care service providers are legally obliged to deliver services to older people in line with the Statement of Rights. This marks a fundamental reorientation of the sector from a system primarily focused on funding and provider obligations, to one centred on the individual rights of older Australians.
2. Strengthened Aged Care Quality Standards
The strengthened Quality Standards are part of the new Aged Care Act 2024 and they applied from 1 November 2025. They are more detailed and measurable than the previous Quality Standards. Seven strengthened Quality Standards have been introduced alongside the new Act, covering vital areas such as food and nutrition, dementia, diversity, governance and clinical care. All registered providers must comply with the strengthened Standards as a condition of their registration.
The strengthened Aged Care Quality Standards set clear, measurable expectations for safe, quality, rights-based care. Providers are now subject to a new audit process aligned to registration requirements, and the Aged Care Quality and Safety Commission has started working with some Support at Home providers to improve their compliance with the new legislation, finding that pricing transparency is one of the most common compliance issues.
3. Support at Home Replaces Home Care Packages
The Support at Home program brings together current in-home aged care programs. Support at Home replaces Home Care Packages and the Short-Term Restorative Care Programme from 1 November 2025. The Commonwealth Home Support Programme will transition no earlier than 1 July 2027.
The new Act establishes eight Support at Home classification levels, with funding up to $78,106 per year, and a 10% care management cap. A key protection for existing recipients is the “no worse off” principle. The government is applying “no worse off” arrangements so older people who were in the aged care system prior to 12 September 2024 will not be financially disadvantaged because of the changes.
From 1 July 2026, an additional layer of consumer protection comes into effect: government-set price caps will apply to Support at Home services, informed by advice from IHACPA. From this time, the prices that providers set must be at or below the level of the caps.
4. Mandatory Staffing and Care Minute Requirements
Residential homes must have a registered nurse on site 24 hours a day, 7 days a week, and deliver a minimum of 200 minutes of care per resident per day, including 40 minutes from a registered nurse. Accountability for these requirements is tightening in 2026. From April 2026, stricter care minute accountability applies, with provider funding linked to demonstrated delivery.
5. A New Registered Supporter Framework
Starting from 1 November 2025, people who were regular or authorised representatives with My Aged Care as of 31 October 2025 are now known as registered supporters. Regardless of registration status, providers are expected to recognise, include and support carers under the new Aged Care Act 2024 and Aged Care Quality Standards.
6. Strengthened Complaints and Whistleblower Protections
The new Act increases protections for people who call out issues. Older people, families, representatives and aged care workers can report a person or organisation who has not followed aged care law without fear that they will be punished or treated unfairly.
A dedicated Aged Care Complaints Commissioner has been established under the new framework, with a focus on rights-based complaints handling.
7. Greater Pricing Transparency
Consumers can now see how much providers are spending on care, food, staff and accommodation. This information is available on the profiles of providers in the Find a Provider tool on My Aged Care, alongside the prices that each provider typically charges for Support at Home services.
From 1 January 2026, providers are required to publish the most common price for services on the My Aged Care website and their own website, using the correct billable units for services, and must review these prices every two months.
8. New Worker Screening Coming in Mid-2026
A new screening process for aged care workers will commence in mid-2026. This will further strengthen safeguards around who can work in the sector and forms part of the broader workforce accountability reforms underway.
What This Means for Providers
The new Act is not a one-time compliance exercise. The Aged Care Quality and Safety Commission has acknowledged there have been challenges as providers work to meet their responsibilities under the new Aged Care Act 2024, Aged Care Rules 2025 and relevant standards.
Providers that take a proactive approach; investing in staff training, digital capability, pricing transparency and genuine rights-based practice will be better positioned to meet both current obligations and what continues to evolve through 2026 and beyond.
