Policy and Advocacy Aged Care Update 8 December

New Aged Care Act 

The Aged Care Bill 2024 was passed by Parliament on 25 November, incorporating additional amendments, including: 

• refining several key definitions and concepts in response to stakeholder feedback; 

• adjusting the enforceability of the statement of rights and the corresponding condition of registration; 

• implementing a recommendation to bring forward the review of accommodation pricing, with a report now due by 1 July 2026, and embedding this requirement in the Bill; 

• mandating financial hardship as a circumstance for eligibility for the fee reduction supplement; and 

• removing decision-making supporters to streamline the strengthened safeguards and the supported decision-making framework. 

The new Aged Care Act comes into effect on 1 July 2025. 

The Department of Health and Aged Care is consulting on the rules that will guide the implementation of the Act in stages. They are currently consulting on Chapter 4 of the Aged Care Bill 2024, which relates to the funding of aged care services. It includes Stage 2a – Funding for Support at Home program which covers subsidies, individual contributions and means testing for older people. Further consultations on Aged Care Act Rules will be held in 2025. 

OTA has made a submission on the Stage 2A rules, highlighting our concerns about funding arrangements for assistive technology and home modifications. 

OTA will continue to keep members updated.