After a series of frustrating delays, the highly anticipated new Aged Care Act will finally commence on November 1. Touted as “once-in-a-generation” reform, unfortunately it presents unanswered questions and concerns for providers, their staff, industry groups, advocates, and care recipients and their loved ones alike.
A rights-based Aged Care Act was a key recommendation of the Royal Commission into Aged Care Safety and Quality. Delivered on February 26, 2021, it declared widespread, rights-based reform, both urgent and essential.
Aged care reform was a central plank of the Albanese government’s election pitch in 2022, including the promise of new legislation by July 1, 2023. Twenty-eight months and another federal election have passed since that promised date, with aged care reform receiving barely a mention in the 2025 campaign.
One could reasonably assume the continued delays were to ensure the introduction of a robust Act, grounded in the rights, needs and dignity of older Australians. However, there remain questions over whether the new Act fulfills those expectations.
Of fundamental concern are issues of regulatory oversight, financial transparency of service providers, and the enforceability of rights, in legislation which has no clear mechanisms for holding providers accountable. The federal government claims amendments have addressed concerns regarding rights-based protections, including civil penalties for providers. This remains to be proven.
The Albanese government initially committed to including criminal penalties for providers who breached standards. Significant industry and union lobbying, and Coalition opposition, including warnings of a mass exodus of key industry personnel, resulted in the removal of criminal penalties in the Act. That removal places a greater burden on regulatory authorities. While the reforms claim to offer stronger mechanisms for the handling of complaints and stricter accountability provisions through strengthened Aged Care Quality Standards, it is noteworthy that the recently established Office of the Inspector General of Aged Care does not have the power to investigate individual complaints.
The royal commission report called for a right to access care, yet the funding mechanisms in the new Act – primarily the raising of the Refundable Accommodation Deposit (RAD) for those entering aged care facilities – have raised concerns regarding affordability and equity, and the lack of safeguards for financial hardship.
It is beyond question that seniors and their families exploring care options should be able to understand their consumer rights. Yet, it remains unclear whether providers will be obliged to disclose detailed terms of service and accommodation standards.
Arguably of most concern is that the high-quality care objective recommended by the royal commission is not expressed as an objective in the new Act. While the Albanese government has introduced welcome reforms, including workforce development, a requirement for higher level nursing care – including the introduction of 24/7 nursing – and a 15 per cent wage increase across the sector, systemic issues of training, recruitment and retention continue to prove challenging. Questions remain over whether the $11.3 billion investment in pay increases can overcome the chronic long-term underfunding which caused those issues.
A key objective of the reforms is to enable older Australians to live in l11eir own homes for as long as possible. The new Act replaces existing Home Care Packages and the Short-Term Restorative Care program with the new Support at Home program. The $4.3 billion investment over the next decade aims to reduce home care wait times, and address funding classifications and services. Endemic workforce shortages, and year-on-year increases in demand, will test the ambitious “ageing in place” objective.
It remains to be seen what impact the reforms will have on a sector which has been in a state of neglect and crisis for decades. Many identify deregulation following the Howard government’s enactment of its Aged Care Act in 1997 as the start of the decline. We remain hopeful yet vigilant in assessing the success of the Albanese government’s reforms.
Catherine Henry is a health and aged care lawyer and advocate, and principal of Catherine Henry Lawyers.
This opinion piece appeared in the Newcastle Herald on 1 November 2025.
