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Friday, Jun 06, 2025

Federal Government Delays Implementation of Aged Care Reforms

Federal Government Delays Implementation of Aged Care Reforms

The Aged Care Act's introduction is postponed to November to facilitate sector adjustments.
The federal government of Australia has announced a delay in the implementation of the Aged Care Act, moving the start date from July 1, 2025, to November 1, 2025. This decision is aimed at providing aged care providers with additional time to prepare for the significant changes mandated by the new legislation.

Aged Care Minister Sam Rae emphasized the importance of ensuring that all aged care providers are adequately prepared for the transition, stating that the government will engage closely with the sector during this period.

Rae described the delay as a 'brief deferral' intended to enable sufficient time for both the Aged Care Act and the associated support-at-home programs to be effectively implemented to support older Australians and their families.

The Aged Care Act, which was passed in November 2024, establishes a new fee structure for aged care residents, including a means-tested resident fee of over $100 per day, referred to as the 'non-clinical care fee,' intended to cover costs for amenities such as food.

Health Minister Mark Butler reiterated that the additional time will benefit aged care providers by allowing them to prepare their clients and support staff in adapting to the upcoming changes.

Butler explained that feedback received from sector stakeholders and advice from government departments influenced the decision to delay the act's implementation.

He noted that the postponement aims to ensure compliance with community expectations and the successful rollout of essential reforms within the aged care system.

The delay comes at a time of increased focus on the quality of aged care services in Australia, especially following the findings of the Royal Commission into Aged Care Quality and Safety, which had previously highlighted significant issues within the sector.

The government aims to improve standards of care and accountability through these legislative changes.
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