A new era: Aged Care Bill passes parliament

Aged care will begin a new era in 2025 after parliament approved the Aged Care Bill on Monday.

The Bill secured senate approval late last Thursday evening but the after hours timing meant the government had to wait for lower house approval this week. This was the final agreement the Bill needed for the Aged Care Act to be enshrined in law.

Starting from July 1, 2025, the new Aged Care Act will deliver a range of improvements including a tougher regulatory model, strengthened Aged Care Quality Standards and a Statement of Rights to ensure older people and their needs are at the centre of the new aged care system.

There were fears the Bill would not even pass in 2024 after progress stalled on bipartisan support in recent months. However, late night alterations and passionate negotiation from Australia’s health, aged care and political leaders saw the Bill ultimately ticked off by all levels of parliament.

Minister for Aged Care Anika Wells said this was a sign of the Australian Government keeping its word after promising to put ‘the care back in aged care.’

“The new Aged Care Act is the final piece of the puzzle to create a better way of caring for older people both today and into the future,” she said.
  
“This process has been testament to our government’s unrelenting commitment to make positive, lasting change for older people who have spent their lives contributing to Australia.
 
“Now that we have followed through on our commitment to deliver a new Aged Care Act, it’s incumbent on all of us to live up to this promise and deliver meaningful change across aged care.

The government will now focus on supporting providers ahead of the July 1, 2025, implementation date.

“We have established the Transition Taskforce to work with the sector in preparation for July 1 so we can all make the necessary changes to deliver better aged care,” she added.

This includes adapting to a new home care model, Support at Home, new classification structures, modern funding measures and heightened compliance and regulation for providers working under person-centred care legislation.

Further information on the new Act is available at: health.gov.au/aged-care-act.

What are the providers saying?

Early responses filtered in on Monday with the Aged and Community Care Providers Association (ACCPA) leading the way.

Chief Executive Officer Tom Symondson hailed the passing of the new Act, labelling it a historic moment for Australia’s ageing population.

“This truly is an historic moment in Australia’s aged care reform journey,” said Mr Symondson.
 
“Our elected politicians should be congratulated on reaching rare bipartisan support for these landmark reforms.
 
“Australia’s population is ageing and we need to be ready, not only for the influx of Australian’s needing care, but to meet the expectations of care and choice of services that they will demand, and should expect of the sector.”

Mr Symondson said providers need realistic transition times and support to implement these vital reforms as it will be a ‘mammoth task in transitioning.’

We can’t have a situation where parts of the new Act are implemented, with mandated requirements that simply can’t be achieved due to a lack of lead time,” he added.
 
“Failure would have a disastrous impact on the confidence of the sector. Everyone wants this reform to succeed, but that means a staged approach to implementation should be adopted. We only get one chance to get this right.”

Elsewhere, Catholic Health Australia Director of Aged Care Policy Laura Haylen said the Act’s passage lays the foundation for a better and more sustainable aged care system.

“We welcome this seminal reform which will help deliver quality and sustainable aged care for all Australians, whether they live in a city, regional town or rural area,” she said.

“Aged care providers can now move to a sustainable footing and start to look at expanding operations where there is unmet need, particularly among vulnerable and marginalised communities.”