Aged Care Bill Passes Parliament: A New Era for Aged Care Begins in 2025

In a landmark moment for the nation, the Albanese Labor Government’s Aged Care Bill has officially passed through Parliament, heralding transformative reforms to Australia’s aged care system. The passage of this Bill introduces a new Aged Care Act, fundamentally reshaping the sector to prioritise quality, safety, and dignity for older Australians.

Described as a "once-in-a-generation" reform, the legislation addresses the key recommendations from the Royal Commission into Aged Care Quality and Safety, as well as 57 additional recommendations.

Minister for Aged Care, Anika Wells, said the government’s actions reflect a deep commitment to improving the lives of older Australians.

"The Prime Minister said Labor would put the care back into aged care, and we have kept our word," Minister Wells stated. "This new Act represents the final piece of the puzzle to ensure older Australians receive the respect, dignity, and quality care they deserve."

Key Changes in the New Act

Effective from July 1, 2025, the new Act introduces:

• Tougher Regulations: Enhanced regulatory models to hold aged care providers accountable.
• Strengthened Quality Standards: Updated Aged Care Quality Standards focusing on care excellence.
• A Statement of Rights: Ensuring that the needs and voices of older people are at the core of care delivery.
• Support for Home Care: A new $4.3 billion Support at Home program, enabling seniors to stay active and connected in their own homes, with faster care delivery and 300,000 new places over the next decade.

Empowering Older Australians

Older Australians and their families will have increased autonomy in shaping the care they receive, alongside new protections for voicing concerns and improved mechanisms for resolving complaints. For those receiving home care, funding classifications will expand from four to ten, offering tailored support that includes home modifications, assistive technology, and uncapped cleaning and gardening services.

Building a Stronger Sector

The reforms also aim to establish long-term sustainability for the aged care sector. Measures include new funding strategies, incentives for quality improvements, and significant investments in workforce pay and transparency in provider operations.

Minister Wells acknowledged the efforts needed to bring the reforms to life, emphasising the government’s collaborative approach. "We have established the Transition Taskforce to work with the sector to ensure the successful implementation of these changes by July 1, 2025," she said.

The reforms build on other major initiatives, including 24/7 nursing, Star Ratings for providers, and an $11.3 billion investment in worker pay rises.

These historic reforms mark a significant step forward in ensuring older Australians receive the care and respect they deserve, setting the stage for a more compassionate and effective aged care system.