The new Aged Care Act makes aged care safer, fairer and more respectable.
From 1 November 2025, the new Aged Care Act came into effect, introducing major reforms to how aged care is delivered and regulated in Australia.
The changes come in the wake of the Royal Commission into Aged Care, which found the Act was no longer fit for purpose, as it was structured around providers and how to fund them, rather than the needs of the people seeking care.
The new Act aims to empower older people in their decision making and protect their rights throughout their aged care journey.
The Act introduces two key statements that will guide the actions of all providers: the Statement of Rights, and the Statement of Principles.
The Statement of Rights
The cornerstone of the new Act is a Statement of Rights. It formally recognises that every older person receiving care has the right to:
- be treated with dignity and respect
- make choices about their care
- feel safe and supported
- have their culture, identity and preferences valued, and;
- participate in decisions about their daily life and wellbeing.
This marks a shift from a system focused mainly on service delivery, to one focused on the individual receiving care. It sets clear expectations for how care should be delivered, The Statement of Principles
The Statement of Principles provides guidance to providers and aged care workers on how the aged care system should work to support person-centred care, empower carers, instill resilience and transparency, and continually improve.
Fee changes
The Act restructures some of the existing fees and introduces some new ones:
Hotelling Supplement: This is a new means-tested daily fee for non-clinical services, eg. hotel-type costs such as cleaning, laundry and meals. Residents may need to pay part or all of this fee depending on their assets and income.
Non-Clinical Care Contribution: this capped fee replaces what was previously called the means-tested care fee, and applies to residents who can afford to pay the full Hotelling Supplement. It covers services that support daily living such as bathing assistance, mobility help, lifestyle and recreational activities.
Refundable Accommodation Deposits (RADs): Providers are now able to retain up to 2% per year (up to five years) of the lump sum paid by residents for their accommodation. This means the refundable amount is reduced relative to current arrangements for new entrants. The maximum room price has also been lifted, and is indexed yearly.
Daily Accommodation Payments (DAPs): If residents are paying a DAP, this now will be indexed twice a year (March and September) for entrants after November 1, 2025.
Residents who entered before November 1 are not subject to the new fee arrangements, unless they opt in.
Financial and Prudential Standards
New Financial and Prudential Standards aim to strengthen oversight and financial accountability across the sector. These standards focus on ensuring providers are well-managed, financially sound and able to meet their obligations to residents and families.
The new Standards replace the current four separate prudential/financial standards with three updated Standards:
Financial and Prudential Management: sound governance, financial risk management and responsible oversight.
Liquidity: maintaining sufficient cash flow to meet day-to-day operational needs.
Investment: ensuring refundable deposits and other resident funds are appropriately protected.
Strengthened Quality Standards
The Aged Care Quality and Safety Commission will play a central role under the new framework, with expanded powers to monitor and enforce compliance.
Providers will continue to be assessed against quality standards, with a greater focus on outcomes and how people experience their care, not just how services are delivered.
The new standards cover areas identified in the Royal Commission, including:
Diversity and dementia care: to ensure the diversity of older people is better understood and considered, including those living with dementia.
Governance: the new standards require organisation’s to set strategic priorities, promote a culture of safety and quality, and partner with older people.
Food and nutrition: this standard aims to improve the quality and variety of meals, and the dining experience of residents.
Clinical Care: the strengthened standard covers clinical requirements including medications management, clinical safety, and palliative care.
There are also strengthened whistleblower protections and improved mechanisms for complaint, feedback and incident reporting.
How we are responding
Many of the changes reflect the values Christadelphian Homes already holds and demonstrate every day, including respect, compassion and safety for all our residents and staff members.
We have been working hard over the past year to ensure all staff understand the new requirements under the Act, and will continue to provide care that complies with all standards and creates a safe, kind, and dignified home for all our residents.