New Aged Care Act: what’s happening and when?

Key points:

• With the new Aged Care Act expected to begin on July 1, 2025, changes to current home support and residential care are expected to affect many older Australians
• The Australian Government has allocated $5.6 billion dollars to reform aged care
• Approximately 4.2 million Australians are aged 65 years or older, according to recent data from the Australian Institute of Health and Welfare

The Australian Government has recently indicated when the new Aged Care Act is to begin, however, many older Australians and their families may be confused about what is happening and how this affects them. 

From July 1, 2025, the new Aged Care Act will be effective if passed through the Australian Parliament. Some changes will occur at a similar time to the approval, while others may take longer to come into effect.

This act will replace the current legislation related to the Aged Care Act 1997 and the Aged Care Quality and Safety Commission Act 2018.

A total of $5.6 billion dollars has been allocated to the reform of the Aged Care Act. 

Timeline for Aged Care Act approval

The Aged Care Act Bill was presented to the House of Representatives in the Parliament of Australia on September 12, 2024.

After this, senators will consider the bill through discussions and provide related recommendations. 

If this is approved, the bill goes to the senate where any required changes will be made. Both houses of parliament will review this bill, which will then be passed to the Governor General for approval. 

After it is approved, the bill becomes legislation and the suggested changes will occur across the aged care sector which is expected to happen before July 1, 2025.

Support at Home dates

From July 1, 2025, the current Home Care Packages and Short-Term Restorative Care Programme will be replaced by a combined Support at Home program, for which the government has invested $4.3 billion dollars. 

However, the government will be working with providers to ensure that they are prepared to transition to the new program before July 1, 2025.

By July 1, 2027, the current Commonwealth Home Support Programme will also be moved into the updated Support at Home program. 

Changes have already been made in preparation for the new program, as a streamlined assessment process for older Australians was brought into effect on July 1, 2024, called the Single Assessment System. 

Regional Assessment Services and Aged Care Assessment Teams are not expected to be currently using the Single Assessment System but will be from late 2024.

While First Nations people will be able to access assessments through the Single Assessment System, First Nations assessment organisations will be introduced from July 1, 2025. These organisations will be able to ‘ensure assessments are culturally safe, are trauma informed and better connect older First Nations people with appropriate services.’

The No Worse Off principle applies to older Australians currently with a Home Care Package and those making contributions before September 12, 2024. These Australians, as well as those waiting on the National Priority System or with approved packages, will receive ‘a Support at Home budget equivalent to their approved package level when one becomes available.’

In an interview on Radio National Breakfast, Minister for Aged Care Anika Wells discussed the impact of the new Support at Home program for older Australians.

“In the new Support at Home regime, there’s eight levels of packages specifically to address those people that want to stay at home but have more complex needs that ordinarily would have had to go into residential aged care,” she said.

“So, under the new Support at Home regime, rather than $61,000, which is the current limit, there’ll now be up to $78,000 in your package to keep you at home.”

Residential care dates

The new contributions and accommodation arrangements only apply to older Australians who enter residential aged care from July 1, 2025. 

This means that if you are already in residential care or will enter before June 30, 2025, you will pay for residential care based on your current arrangements until you leave care.

Similar to the criteria in the new Support at Home Program, the No Worse Off principle applies. 

People who were receiving Home Care Package support before September 12, 2024, ‘will stay on the existing contribution arrangements unless they opt to move to the new program.’ 

Accommodation payments to the residential care facility may differ as this is discussed between the older person and the provider — unrelated to the government. 

Dates yet to be confirmed

The appointment of a First Nations Aged Care Commissioner is yet to be confirmed. The new commissioner will ensure that aged care practices are culturally safe for First Nations Australians and this will contribute to ‘closing the gap.’

Prime Minister Anthony Albanese commented on the impact of the reforms on the current aged care system in Australia.

“Our government is working to ensure that the aged care system that supports them is stronger now and sustainable into the future,” he said.

“Reforms like this do not happen every day. They are once-in-a-generation and my government is proud to deliver them, as we said we would.”

Approximately, 4.2 million Australians are aged 65 years or older, with projections suggesting that Australia’s ageing population is expected to grow even further.

For more information regarding some of the financial impacts of the new act, read this article: New Aged Care Act unveiled: what happened to make it happen?

What are your biggest concerns about the updated Aged Care Act?

Let the team at Talking Aged Care know on social media. 

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