The Aged Care and Other Legislation Amendment Bill 2025 makes technical and consequential changes to support the start of the new Aged Care Act 2024, ensuring a smooth transition to a risk-based regulatory model for funded aged care services. It updates definitions, funding rules, quality review processes, data-sharing and automation powers, and strengthens penalties for misuse of accommodation bonds.
The Bill implements key recommendations of the Royal Commission into Aged Care Quality and Safety, including carry-over of unspent funds, interim funding during high-demand periods and mandatory five-year reviews of the Aged Care Quality Standards.
The Bill comprises three Schedules:
This Bill is essential to deliver the Royal Commission’s reforms and maximise the wellbeing of older Australians by closing regulatory gaps and clarifying funding rules. The new risk-based model, supported by automated subsidy calculations and clear financial reporting, will direct resources to care rather than red tape.
By mandating reviews of the Aged Care Quality Standards every five years and integrating compliance data into Star Ratings, the Bill fosters greater accountability and transparency among providers, strengthening public confidence in the system. Carry-over of unspent funds and interim funding during surges in demand protect consumers from service interruptions and ensure continuity of care [Judgment].
Technical updates to definitions and transitional provisions reduce legal uncertainty, enabling providers to focus on service delivery while ensuring all data and processes are aligned under the new Act. Overall, the Bill realises a fairer, safer and more efficient aged care system.
Although intended to support reform, the Bill introduces extensive complexity—hundreds of new definitions, notional accounts, rule-making powers and reporting obligations. This adds a significant compliance burden on providers, who must navigate constantly evolving rules rather than spending time on direct care [Judgment].
The heavy administrative load risks diverting scarce staff and funding from frontline services, especially for small and regional providers with limited regulatory capacity. Frequent rule changes under two-year transitional powers could lead to confusion and uneven implementation, undermining the very continuity of care the Bill seeks to protect [Judgment].
2025-07-24
House of Representatives
Before Senate
Unspecified
Health, Disability and Ageing
Healthcare, Social Support / Welfare, Civics