The Aged Care Act 2024 (Cth) commenced on 1 November 2025, introducing the most significant reform to Australia’s aged care system in decades. Developed in response to the Royal Commission into Aged Care Quality and Safety, the Act aims to restore trust, strengthen regulation, and ensure that older Australians receive care founded on dignity, respect, and choice.

Replacing the Aged Care Act 1997 (Cth), it establishes a modernised framework that redefines provider obligations, clarifies the rights of care recipients, and expands the role of the Aged Care Quality and Safety Commission. The new system is supported by the Aged Care Rules 2025 (Cth) and the Aged Care (Consequential and Transitional Provisions) Rules 2025 (Cth), which govern implementation and transition arrangements.[1]

• Buyers may enter the property market with a deposit as low as 5% (or 2% under the Family Home Guarantee).
• The Government guarantees up to 15-18% of the loan, removing the requirement for Lenders’ Mortgage Insurance (LMI).
• The guarantee is not a loan or cash grant but a commitment to the lender to cover part of the risk.
• Most major lenders are participants in the scheme.

The reforms shift aged care from a program-based to a person-centred system, with greater emphasis on transparency, accountability, and governance. Key updates include:

• New provider registration framework. Providers are now classified under six categories aligned with the type and intensity of care delivered.
• Rights-based obligations. A new Statement of Rights ensures older Australians are treated with dignity and have meaningful control over their care.
• Pricing and funding transparency. Support-at-Home providers must publish standardised pricing and communicate fees clearly.
• Stronger governance and suitability tests. The “fit and proper person” requirement now extends to directors, key personnel, and controlling entities.
• Transitional arrangements. Existing approved providers are deemed registered under the new Act but must update care agreements within specified timeframes

The operation of the Aged Care Act 2024 (Cth) is supported by the Aged Care Rules 2025 (Cth) and the Aged Care (Consequential and Transitional Provisions) Rules 2025 (Cth) (Transitional Rules). These instruments preserve continuity across the sector while guiding providers through the transition to the new framework.

The Transitional Rules uphold existing approvals, registrations, and investigations before the Aged Care Quality and Safety Commission, while introducing new requirements for service agreements, care planning, and governance.

• Support at Home and Residential Care: Existing agreements automatically become service agreements and must be reviewed within set timeframes – 30 to 90 days for home care and 12 months for residential care. Providers must continue delivering services and ensure new agreements reflect the updated rights-based standards.
• Care Plans and Information: Current care plans convert to care and service plans and must be reviewed within 12 months (or within 14 days if none exist). Providers must also give residents the new Statement of Rights.
• Supporters and Representatives: Those recorded in MyAgedCare as representatives are now recognised as supporters under the Act and continue in that role until revoked.
• Associated Providers and Pricing: Registered providers remain responsible for subcontracted services and must notify the Commission of new or changed arrangements. Support-at-Home providers must publish standardised prices within seven days and report them to the System Governor by 8 November 2025.

Providers will need to align governance, systems, and culture with the new regulatory framework. Compliance now extends beyond processes to demonstrate genuine accountability and person-centred care.

• Update agreements and policies to reflect new terminology, rights, and provider duties.
• Reinforce governance through clear oversight, training, and reporting by boards and key personnel.
• Manage subcontractors to ensure compliance obligations are properly passed through.
• Maintain accurate data and reporting to meet new pricing and transparency requirements.
• Foster a compliant culture that upholds the intent of the reforms, not just procedural standards.

Although transitional rules preserve continuity, the new Act signals a cultural and regulatory reset for Australia’s aged care sector. Providers that treat compliance as an ongoing strategic function, rather than a one-off adjustment, will be best placed to adapt, manage risk, and maintain consumer trust

EdenYork’s Healthcare & Life Sciences team advises aged care providers and operators on the legal and practical implications of the Aged Care Act 2024 (Cth) and Aged Care Rules 2025 (Cth).

We assist clients in navigating the above reforms – including registration, governance, and policy transitions, to ensure full compliance with the new framework while maintaining operational efficiency and continuity of care.

Written by Joseph Khoury

[1] Aged Care Act 2024 (Cth); Aged Care Rules 2025 (Cth); Aged Care (Consequential and Transitional Provisions) Rules 2025 (Cth).