New Aged Care Act: six things providers need to know

On 1 July, the new Aged Care Act comes into effect, marking once-in-a-generation sector reforms. Senior Lawyer Stephanie Long* sets out six things providers need to know, complete with tips.

Australia’s aged care sector is undergoing significant transformation. In 2021, a Royal Commission into Aged Care Quality and Safety found that the current system was no longer fit for purpose and was not focused on the individuals accessing services. In response, the Australian Government is introducing new legislation, set to come into effect on 1 July 2025.

The new Aged Care Act 2024 is designed to improve the quality and safety of care for older Australians, enhance transparency and accountability within the industry, and empower individuals receiving care. This article will delve into some of the key aspects of these reforms, their implications, and what action you might need to take to respond to them.

1. Strengthening the Aged Care Quality Standards

The Aged Care Quality Standards set out appropriate, safe and quality care. Under the new reforms, these standards are being strengthened to include other critical areas, including care and services, food and nutrition, clinical care, and the environment.

Previously, the standards were outcome-based, fixed on topics such as feedback and complaints, dignity and choice, governance, human resources and assessment. Now, the standards have been reworked to identify the core value that underpins each of these outcomes and strengthen the expectations placed upon providers.

For example, the previous expectation for feedback was that older people “feel safe and [are] encouraged and supported to give feedback and make complaints … engaged in processes to address my feedback and complaints, and appropriate action is taken”.

Now, the expectation is for all aged care recipients to be able to say: “The organisation is well run. I can contribute to improvements in care and services. My provider and aged care workers listen and respond to my feedback and concerns. I receive funded aged care services from aged care workers who are knowledgeable, competent, capable and caring.”

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Tip

To best implement these new standards, you should review and update your existing policies and procedures to ensure they align with the enhanced focus on individual needs. Your staff will need to be well-versed in the new standards, and your organisation should place individuals and their needs at the centre of organisational structures.

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2. Support at Home program

The new initiative aims to consolidate and streamline home-based aged care services, emphasising the delivery of home support, assistive technology and home modifications. It will replace the Home Care Packages Program and Short-Term Restorative Care Programme. The Commonwealth Home Support Programme will also transition to the new program by 1 July 2027 at the earliest.

Key areas under the new Support at Home program include:

New service agreement

Changes in the pricing and structure of the care you provide mean you must give care recipients a new service agreement to sign. The requirements for what should be included in these new service agreements for Support at Home will be published in a guidance document, which is yet to be released but is expected before 1 July. Watch this space.

Pricing changes

Unlike the current Home Care Package model, the price for a Support at Home service will include all administrative costs, like transport. As such, pricing may change and you must discuss this change with care recipients.

Wellness and reablement

You have a responsibility to support participants in maintaining or improving their physical, mental, cognitive and communication capabilities and remaining at home, where possible.

Support for diverse needs

People from different backgrounds need appropriate, accessible and sensitive care. You should, where appropriate, acknowledge additional barriers, challenges and discrimination that older people may experience or have experienced and provide care that responds to these specific needs.

Dignity of risk

You should work with participants to balance their duty of care with a participant’s right to make choices, even if their choices include some risk to themselves.

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Tip

The details of the system are still being refined and transitioned over the next two years. In the meantime, familiarise yourself with the Support at Home program manual and consider how you can integrate its values into your daily practice. You can access the manual at www.health.gov.au/resources/publications/support-at-home-program-manual-a-guide-for-registered-providers.

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3. Accountability and governance

Under the reforms, governing bodies and key personnel must adhere to stricter requirements, including enhanced due diligence obligations and potential penalties for non-compliance. These changes aim to foster a culture of responsibility and transparency at the highest levels of aged care organisations.

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Tip

You must ensure your board structures, reporting mechanisms and internal controls meet the new, more stringent criteria. This may involve restructuring governance frameworks, implementing more rigorous auditing processes and ensuring that all staff understand their individual responsibilities within the accountability framework.

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4. Improved workforce standards

The aged care sector relies on quality staff. To attract and retain a skilled and dedicated workforce, the new laws will introduce mandated minimum training requirements, clearer career pathways and a focus on professional development, making aged care a professional, respected and desirable sphere to work in.

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Tip

Invest in comprehensive training programs for staff, ensuring they possess the necessary skills and knowledge to deliver high-quality, person-centred care. This may involve partnering with educational institutions, developing internal training modules and providing ongoing opportunities for upskilling.

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5. Information sharing

To empower care recipients, there will be a heavier emphasis on information sharing and provider transparency. This includes establishing a national aged care data system to give better insights into different providers’ quality and safety of care.

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Tip

Ensure you have the systems in place to accurately collect and report the required data, so that care recipients can easily access information that can help them compare services and make decisions that best suit their needs.

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6. Regulation of restrictive practices

Finally, the new legislation introduces stricter guidelines and oversight for restrictive practices, such as chemical or physical restraints. These measures, while sometimes necessary, have significant impacts on a person’s liberty, so they must be applied carefully. The new legislation makes clear that restrictive practices must only be used as a last resort, with appropriate authorisation and ongoing review.

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Tip

To respond to this approach, you must implement robust policies and procedures regarding restrictive practices, including comprehensive assessment processes, clear documentation requirements and regular reviews.

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Key takeaways

In summary, under the new aged care law reforms you can expect the following:

1. Enhanced quality standards — a greater focus will be on person-centred care, individual needs and active participation in care planning.
2. Support at Home program — this new program will replace existing in-home care programs to ensure better access to services, especially in rural areas.
3. Increased accountability — governing bodies and key personnel face stricter obligations and potential penalties.
4. Improved workforce standards — mandated training and professional development aim for a more skilled workforce.
5. Greater transparency — a national data system and increased reporting will provide more information to the public.
6. Stricter regulation of restrictive practices — use of restraints will be more tightly controlled, prioritising less restrictive care approaches.

These aged care law reforms represent a significant step towards Australia’s more consumer-focused, transparent and high-quality aged care system. Understanding these key changes and their implications is crucial for navigating the evolving landscape and ensuring the best possible outcomes for older Australians and your business.

*Stephanie Long is a Senior Lawyer at LegalVision.

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