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What Labor’s win means for aged care

The Albanese Government’s decisive re-election in 2025 has set the stage for one of the most significant overhauls of Australia’s aged care system in decades.

Posted
by Polly Policy
<p>The 2025 Federal Election has set the roadmap for the national aged care sector. [Source: ChameleonsEye via Shutterstock]</p>

The 2025 Federal Election has set the roadmap for the national aged care sector. [Source: ChameleonsEye via Shutterstock]

For older Australians and their families, this isn’t just another political promise; it’s the start of real, long-awaited change.

Backed by a clear mandate, the Labor Government is pressing ahead with reforms that aim to restore dignity, simplicity and fairness to aged care, along with finally delivering on the vision laid out by the Royal Commission into Aged Care Quality and Safety.

From a brand-new Aged Care Act to a complete redesign of home care services, the changes ahead are ambitious. However, they’re also personal, designed to make the system easier to navigate, more transparent and more responsive to the needs of the people who rely on it most.

So, what’s changing and how will it affect you or your loved ones?

The new Aged Care Act: rights, simplicity and accountability

At the heart of the reforms is a new Aged Care Act, set to begin on July 1, 2025. Designed to replace outdated laws, the new legislation aims to put older people’s rights and well-being front and centre.

Key features of the act include:

  • a new Statement of Rights for everyone accessing aged care;
  • a simple, more transparent way to access services;
  • fairer assessment processes across the board; and
  • stronger rules to hold providers accountable for the care they deliver.

These changes are more than bureaucratic; they are personal. For older Australians and their loved ones, it means more clarity around what they can expect from their care and more power to speak up when things go wrong. 

Home care is changing — introducing Support at Home

If you or someone you love is receiving home care, you’ll likely be affected by the rollout of the Support at Home Program.

Starting in July 2025, this new system will replace existing Home Care Packages and Short-Term Restorative Care, with the aim of making it easier to get the support you need, when and how you need it.

Instead of navigating a patchwork of services, the new model aims to provide:

  • one clear set of rules;
  • a simpler process for getting services;
  • tailored support that better matches your goals and preferences.

The government says this reform is all about streamlining the system while keeping older Australians at the centre of decisions. You can learn more about what’s changing in aged care here.

Funding commitments and a focus on the workforce

Labor’s pre-election budget committed nearly $292 million dollars in additional funding for the next stage of reform, with a clear focus on improving regulation, access and support for culturally safe care.

Some of the key measures include:

One of the biggest challenges facing aged care is still workforce capacity. While wages for direct care workers have been increased in recent years, there is still pressure on the sector to attract and retain enough skilled staff to meet growing demand, especially in home care.

The government says it will continue to address these issues, but aged care leaders have warned that staffing shortages remain a significant concern.

What this means for families

For those navigating aged care decisions, it’s understandable to feel overwhelmed. However, this new chapter could bring:

  • clearer rights, so you know what to expect and what to ask for;
  • simpler services, especially if you’re receiving care at home;
  • stronger protections, including better regulation of aged care providers;
  • more culturally appropriate options, especially for First Nations and diverse communities.

While these changes won’t happen overnight, they mark a step toward a system that treats older Australians with dignity, respect and fairness.

As the reforms roll out, now is a good time to:

  • check your current care arrangements;
  • speak to your provider about how changes may affect you; and

It’s been five years since the Aged Care Royal Commission laid bare the problems in the system. Since then, there’s been progress, but also frustration.

Labor’s renewed mandate offers hope that the sector is moving in the right direction, with older Australians finally being placed at the heart of care decisions.

At Talking Aged Care, we’ll keep you updated on what these changes mean for you and your family and how to navigate them confidently.

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