7 Key Changes and Requirements for Aged Care Providers under the New Australian Aged Care Act 2024

By: ServiceEdge AI Marketing, the Change Agent of Aged Care Providers

Report for Aged Care Administrators and Workers

This report provides the key critical requirements and changes that aged care providers need to adhere to for compliance with the new Australian Aged Care Act 2024, due to be enforced on 1 July 2025. This information is vital for administrators and staff across all functions in both for-profit and non-profit Aged Care organisations.

1. Strengthened Statement of Rights

Requirement: The new Aged Care Act 2024 includes a strengthened Statement of Rights for older people receiving care.[1]  This statement outlines the fundamental rights of individuals accessing aged care services, placing their needs and rights at the centre of the aged care system.[2]  Providers will have a positive duty to understand and deliver services in line with this Statement.[7]

What has changed: The Statement of Rights replaces the previous Charter of Aged Care Rights.[7]  It includes rights such as independence, autonomy, empowerment, freedom of choice, equitable access, quality and safe care, respect for privacy, person-centred communication, and the ability to raise issues without reprisal.[2]

2. New Provider Registration and Renewal Requirements

Requirement: The Act introduces a new, single, universal provider registration model for all providers delivering Commonwealth-funded aged care services.[5] Providers must register with the Aged Care Quality and Safety Commission (ACQSC) under one or more of six registration categories based on the types of services they intend to deliver.[5]  Registration will be for a defined period, after which renewal will be required.[9]

What has changed: This is a completely new registration model that streamlines provider obligations and interactions with the ACQSC, especially for those delivering services across multiple categories.[9]  The new model includes six specific registration categories:

1)    Category 1 – Home and community services

2)    Category 2 – Assistive technology and home modifications

3)    Category 3 – Advisory and support services

4)    Category 4 – Personal care and care support in the home or community (including respite)

5)    Category 5 – Nursing and transition care

6)    Category 6 – Residential care (including respite). [5]

These categories may be subject to further change. Existing providers will be automatically transitioned (deemed) into the new system.[5] 

3. Strengthened Aged Care Quality Standards

Requirement: The new Act implements strengthened Aged Care Quality Standards to ensure the delivery of safe, high-quality, and person-centred care.[1]  These standards are more measurable, detailed, and aligned with the new Statement of Rights.[14]

What has changed:  The number of standards has been reduced from eight to seven.[16]  The strengthened standards have a greater focus on person-centred care, diversity, provider governance, food and nutrition, dementia care, and clinical care, with a new dedicated standard for clinical care (Standard 5) and food and nutrition (Standard 6).[10] The standards also include intent statements, expectation statements (written from the perspective of the older person), enforceable outcome statements, and actions to guide providers.[15]  Providers registered in categories 4-6 will need to meet these new standards.[18]

4. Code of Conduct for Aged Care

Requirement: All aged care providers, their governing persons, and workers (including volunteers) must adhere to the Code of Conduct for Aged Care.[1]  The Code outlines expected behaviours and treatment of people receiving aged care, building trust and confidence in the sector.[19]

What has changed:  While the core principles of the Code remain the same, the language has been updated to clarify who the Code applies to under the new Act.[19] The Code emphasises respecting rights, dignity, privacy, providing safe and competent care, acting with integrity, raising concerns, and preventing harm.[20] 

Related Resources for providers:

• Guidance for approved providers

• Provider fact sheet

• Provider readiness checklist

• Your Code: self‑assessment quiz

• Case studies for workers and providers

• Training presentation

• Webinar: recording and presentation slides

5. Worker Screening

Requirement: The new Act includes provisions for worker screening to ensure the safety and well-being of older people.[1]

What has changed:  A new Aged Care Worker Screening Check is being introduced for risk-assessed roles (including responsible persons, those directly delivering care, and those with more than incidental contact with older people).[25]  However, this new process will not start before 2026. Until then, existing police checks are still required for workers and volunteers who do not work in risk-assessed roles, and NDIS Worker Screening Checks are also recognised.[25]  Providers must continue to check the Banning Orders Register.[26] 

6. New Financial and Prudential Standards

Requirement: The Act introduces new Financial and Prudential Standards to strengthen the financial governance and sustainability of aged care providers.(1)  These standards aim to ensure providers are transparent and financially viable to deliver quality care and maintain continuity of services.(31)

What has changed:  The new standards replace the previous four standards (Liquidity, Governance, Records, and Disclosure) with three updated and focused standards: Financial and Prudential Management Standard, Liquidity Standard, and Investment Standard.[31] A key change is the introduction of an enforceable minimum liquidity amount for all residential aged care providers, tailored to their circumstances.[29]  Additionally, home care service providers (in registration categories 4 and 5) must now comply with the Financial and Prudential Management Standard.[29] 

7. New Governance Responsibilities

Requirement: The new Act outlines new provider governance responsibilities for all approved aged care providers.[1]

What has changed: The Act introduces specific requirements for providers' governing bodies, including ensuring a majority of independent non-executive members and at least one member with experience in providing clinical care.[24]  Providers must also establish and maintain a quality care advisory body and annually offer to establish a consumer advisory body to ensure the voices of care recipients are heard.[32]  There are also requirements for assessing the suitability of key personnel annually and notifying the ACQSC of certain matters.[24] 

Conclusion

These key requirements and changes under the new Aged Care Act 2024, commencing on 1 July 2025, represent a significant shift towards a more rights-based, quality-focused, and accountable aged care system. Managers and workers across all functions within aged care organisations and healthcare providers must familiarise themselves with these changes to ensure their services are compliant and continue to provide high-quality care to older Australians. It is recommended to consult the full text of the new Aged Care Act 2024 and any accompanying regulations or guidance documents issued by the Aged Care Quality and Safety Commission for more detailed information.

Reference List

1.     For providers | Aged Care Quality and Safety Commission, accessed April 2, 2025, https://www.agedcarequality.gov.au/providers

2.     Statement of Rights | Aged Care Quality and Safety Commission, accessed April 2, 2025, https://www.agedcarequality.gov.au/workers/reform-changes-workers/statement-rights

3.     Statement of Rights - Aged Care Quality and Safety Commission, accessed April 2, 2025, https://www.agedcarequality.gov.au/older-australians/reform-changes-older-people/statement-rights

4.     What the new Aged Care Act means for you - OPAN, accessed April 2, 2025, https://opan.org.au/2025/01/21/aged-care-act-means-for-you/

5.     Preparing for the New Aged Care Act: Key changes for registered providers - Lockton, accessed April 2, 2025, https://global.lockton.com/au/en/news-insights/preparing-for-the-new-aged-care-act-key-changes-for-registered-providers

6.     About the new Aged Care Act, accessed April 2, 2025, https://www.health.gov.au/our-work/aged-care-act/about

7.     New rights-based Aged Care Act - OPAN, accessed April 2, 2025, https://opan.org.au/new-aged-care-act/

8.     A new Aged Care Act for the rights of older people, accessed April 2, 2025, https://www.health.gov.au/sites/default/files/2025-02/a-new-aged-care-act-for-the-rights-of-older-people_1.pdf

9.     Provider registration unpacked – registration and registration renewal – Home services - YouTube, accessed April 2, 2025, https://www.youtube.com/watch?v=qNJPurpyk10

10.  Bringing the Strengthened Quality Standards to life - YouTube, accessed April 2, 2025, https://www.youtube.com/watch?v=-s3Cy7OYgLY

11.  How the new aged care regulatory model will work, accessed April 2, 2025, https://www.health.gov.au/our-work/new-model-for-regulating-aged-care/how-it-works

12.  Provider registration policy - Aged Care Quality and Safety Commission, accessed April 2, 2025, https://www.agedcarequality.gov.au/sites/default/files/media/provider_registration_policy_feb_2025.pdf

13.  Provider registration preview | Australian Government Department of Health and Aged Care, accessed April 2, 2025, https://www.health.gov.au/our-work/new-model-for-regulating-aged-care/how-it-works/provider-registration-preview

14.  The strengthened Quality Standards | Australian Government Department of Health and Aged Care, accessed April 2, 2025, https://www.health.gov.au/our-work/strengthening-aged-care-quality-standards/final-draft

15.  Introduction to Strengthened Aged Care Quality Standards - YouTube, accessed April 2, 2025, https://www.youtube.com/watch?v=r3EMtf5R3wQ

16.  What Are The Changes To The Aged Care Quality Standards? | etrainu News, accessed April 2, 2025, https://etrainu.com/news/what-are-the-changes-to-the-aged-care-quality-standards

17.  What's different in the strengthened Quality Standards | Australian Government Department of Health and Aged Care, accessed April 2, 2025, https://www.health.gov.au/our-work/strengthening-aged-care-quality-standards/whats-different

18.  About the Quality Standards, accessed April 2, 2025, https://www.agedcarequality.gov.au/providers/quality-standards/about-quality-standards

19.  Code of Conduct for Aged Care, accessed April 2, 2025, https://www.agedcarequality.gov.au/workers/reform-changes-workers/code-conduct-aged-care

20.  Code of Conduct for Aged Care, accessed April 2, 2025, https://www.agedcarequality.gov.au/for-providers/code-conduct

21.  Interacting with the Code of Conduct for Aged Care: A Guide for Carers, accessed April 2, 2025, https://www.carerswa.asn.au/code-of-conduct-carers/

22.  The Code of Conduct for Aged Care - Ausmed, accessed April 2, 2025, https://www.ausmed.com/learn/articles/code-of-conduct-for-aged-care

23.  Code of Conduct for Aged Care - Health and Community Services Complaints Commission, accessed April 2, 2025, https://hcscc.nt.gov.au/__data/assets/pdf_file/0005/1246865/code_of_conduct_for_aged_care_consumer_fact_sheet_0.pdf

24.  Responsibilities of approved aged care providers, accessed April 2, 2025, https://www.health.gov.au/topics/aged-care/providing-aged-care-services/responsibilities

25.  Screening requirements for the aged care workforce, accessed April 2, 2025, https://www.health.gov.au/topics/aged-care-workforce/screening-requirements

26.  Making sure your workers can work in aged care - Fact sheet, accessed April 2, 2025, https://www.agedcarequality.gov.au/sites/default/files/media/working-in-aged-care.pdf

27.  Worker Screening | Aged Care Quality and Safety Commission, accessed April 2, 2025, https://www.agedcarequality.gov.au/providers/reform-changes-providers/worker-screening

28.  Aged care sector employment checks - Government of South Australia, accessed April 2, 2025, https://www.sa.gov.au/topics/rights-and-law/rights-and-responsibilities/screening-checks/aged-care-sector-employment-checks

29.  Aged Care - New draft Financial and Prudential Standards - Technical update, accessed April 2, 2025, https://www.minterellison.com/articles/aged-care-new-draft-financial-and-prudential-standards

30.  Understanding the new Financial and Prudential Standards - YouTube, accessed April 2, 2025, https://www.youtube.com/watch?v=BjkcFHEqGe0

31.  New Financial and Prudential Standards | Aged Care Quality and Safety Commission, accessed April 2, 2025, https://www.agedcarequality.gov.au/providers/financial-prudential-standards/new-financial-and-prudential-standards

32.  Provider governance - Aged Care Quality and Safety Commission, accessed April 2, 2025, https://www.agedcarequality.gov.au/for-providers/provider-governance

33.  Aged Care Act 2024 - The new Aged Care Act starts from 1 July 2025. Currently, aged care is governed under many aged care laws. The new Act will replace the:

1)    Aged Care Act 1997  

2)    Aged Care (Transitional Provisions) Act 1997

3)    Aged Care Quality and Safety Commission Act 2018.