Yet more delay to aged care reform

The Federal Government has once again postponed the commencement of its long-promised new Aged Care Act—this time to 1 November 2025. This is the fourth time the legislation has been delayed.

There have been mixed responses to this week’s announcement.

The government’s rationalisation is that the delay is necessary for implementing “once-in-a-generation” reforms. Aged care reform had been a central plank of the Albanese government’s 2022 election campaign, with a new, rights-based Aged Care Act promised by 1 July 2023. Aged care reform barely got a mention in this year’s Federal election campaign. Now, over four years since the Royal Commission into Aged Care Quality and Safety (“the Royal Commission”) handed down its Final Report, we are still waiting.

While the Government might refer to the delay as a “brief deferral,” the Royal Commission described reform as urgent and essential. The Minister for Health and Ageing, Mark Butler, assured the public in his media release that the additional time will allow providers to train staff, consult clients, and upgrade systems.

Providers are both relieved and frustrated. One major provider said many worked “really hard to be ready for 1 July, and it was a lot of work in a short period of time.” Others said they were simply unable to make it happen in time.

Behind all of this is a broader concern voiced by aged care advocates—that there is a lack of political will to deliver meaningful, enforceable change.

Not a “rights-based charter”

The Royal Commission’s first recommendation was the introduction of a new Aged Care Act grounded in the rights, needs, and dignity of older people. Although described as a rights-based charter, early analysis of the Aged Care Bill 2024 raised concerns about the enforceability of rights with no clear mechanisms to hold providers accountable.

Funding and workforce challenges remain

The Government has pointed to pay increases for aged care workers and the introduction of 24/7 nursing as key achievements. While welcome, these steps do not fully address ongoing problems with staff retention, training, and conditions.

There are also concerns around affordability and equity. Proposed changes to funding models—including higher Refundable Accommodation Deposits (RADs)—have drawn criticism from older Australians and advocates.

Home care reform: Still a work in progress

The Government’s new Support at Home program is designed to help older people remain at home longer. However, this program costing $4.3 billion is spread over ten years and there is no clear resolution to workforce shortages.

Until home care reform is introduced, older Australians will remain reliant on existing programs like the Home Care Packages Program and the Commonwealth Home Support Program—both of which have access and consistency issues.

Where to from here?

Aged care has been in crisis for decades, and many attribute the problems to the deregulation of the sector by the Howard Government who enacted the Aged Care Act in 1997. The Albanese government professes to place high priority on its aged care reform agenda—yet continued delay and fundamental issues around accountability, regulation and workforce challenges undermine that commitment.