Australia's aged care sector is undergoing its most significant transformation in decades. The 2025 reforms, anchored by the new Aged Care Act, represent the government's response to the findings of the Royal Commission into Aged Care Quality and Safety. These changes affect every aged care provider, every worker, and every person receiving aged care services in Australia.
Here is what you need to know about the key reforms and what they mean for facilities and workers.
The New Aged Care Act
The new Aged Care Act, which took effect on 1 July 2025, replaces the Aged Care Act 1997. It is the legislative foundation for all the reforms and represents a fundamental shift in how aged care is governed in Australia.
The most important change is philosophical: the new Act puts the rights of older people at the centre of the system. It establishes a Statement of Rights for people receiving aged care, enforceable by law. This includes the right to safe, quality care, the right to be treated with dignity and respect, and the right to make informed choices about their care.
For providers, the new Act introduces stronger obligations around governance, transparency, and accountability. Approved providers must demonstrate that they have the capability and resources to deliver quality care — and maintain that standard over time.
Strengthened Regulatory Powers
The Aged Care Quality and Safety Commission has been given significantly expanded regulatory powers under the new Act. These include:
- Greater authority to impose sanctions and compliance notices on underperforming providers
- New powers to appoint administrators to take over the management of failing services
- Enhanced monitoring capabilities, including unannounced site visits and real-time data analysis
- Higher penalties for serious non-compliance, including criminal penalties for the most egregious failures
The regulatory approach is shifting from reactive (responding after something goes wrong) to proactive (identifying and addressing risks before they harm residents). Providers need to ensure their compliance systems, clinical governance frameworks, and staffing arrangements meet the higher bar set by the new regulatory environment.
The Support at Home Program
One of the most significant structural reforms is the introduction of the Support at Home Program, which replaces the Commonwealth Home Support Programme (CHSP) and Home Care Packages. The new program is designed to be simpler, more flexible, and more responsive to individual needs.
For residential care providers who also deliver home care services, this transition requires significant operational adjustment. For workers, it creates new opportunities in community-based care, an area expected to grow substantially as the government's policy emphasis shifts toward supporting people to stay at home longer.
Provider Governance Requirements
The new Act places much stronger requirements on provider governance. Key personnel — including board members, directors, and senior executives — must meet fit and proper person requirements. Providers must have:
- A robust clinical governance framework
- Effective quality management systems
- Financial transparency and sustainability reporting
- Clear accountability structures for care quality and safety
These requirements are designed to ensure that the people running aged care services have the competence, integrity, and resources to deliver quality care.
Worker Screening and Registration
The reforms include a new aged care worker screening scheme that will apply to all workers in government-funded aged care services. This goes beyond the existing police checks and NDIS Worker Screening Checks to create a screening framework specific to aged care.
While the details of the scheme are still being finalised, it is expected to include criminal history checks, disciplinary history assessments, and potentially a register of cleared aged care workers. For workers, this means maintaining your screening and compliance documentation will be more important than ever.
What It Means for Facilities
Facilities need to review and update their governance frameworks, clinical systems, and staffing arrangements to meet the requirements of the new Act. The combination of stronger regulation, mandated care minutes, and AN-ACC funding creates a complex operating environment where compliance, quality, and financial sustainability are all interdependent.
Workforce planning is central to meeting these requirements. Facilities need reliable access to qualified nurses and carers — and that means having strong agency partnerships in place to cover gaps and manage demand fluctuations.
What It Means for Workers
For nurses, enrolled nurses, and personal care assistants, the reforms create both obligations and opportunities. The emphasis on higher staffing levels and care minutes means more jobs and more shifts. The focus on quality and training means that well-qualified, well-trained workers will be in even greater demand.
Workers should ensure they stay current with their compliance requirements, invest in professional development, and seek employers and agencies that provide genuine training and support — not just a shift to fill.
Barton Care stays across all aged care reforms and regulatory changes, so our facilities and workers are always prepared. Contact us to learn how we can support your facility's compliance and staffing needs.
