The new Aged Care Act: What families and providers need to know

Australia’s new Aged Care Act is now officially in force, with the legislation having commenced on 1 November 2025. This marks one of the biggest shifts in aged care in decades, affecting older Australians, families, carers, home care providers, residential services and the broader workforce.

Although the Act is now live, some practical elements are still being phased in. New Aged Care Rules, transitional arrangements and guidance for providers will continue rolling out through 2026. If you’re unsure what applies right now versus what’s still coming, this guide is for you.

Below, we break down the key changes to help you feel supported, informed and confident.

The Aged Care Act: Why Australia needed a new framework

The Royal Commission into Aged Care Quality and Safety made it clear that the old system wasn’t meeting the needs of older Australians.

In response, the Government rebuilt the framework from the ground up, aiming to create a system that is:

• safer
• more transparent
• easier to navigate
• grounded in the rights of older Australians.

The new Act replaces previous legislation and establishes the rules and protections that now guide Australia’s aged care system.

How the new Aged Care Act differs from the Aged Care Act 1997

The Aged Care Act 1997 focused mainly on regulating approved providers and funding programs. It included consumer protections, but it did not place older people’s rights at the centre of the system. The new Aged Care Act takes a different approach. It puts a legally enforceable Statement of Rights at the heart of aged care, strengthens provider governance and reporting obligations, introduces clearer registration categories, and requires greater transparency in fees, agreements and care delivery. The previous Act structured the system. The new Act focuses on protecting and empowering the person receiving care.

A rights-based approach to aged care (now in effect)

From 1 November 2025, every older Australian receiving government-funded aged care is formally protected by a Statement of Rights. These rights must guide every provider’s decisions, policies and day-to-day care practices.

Key rights now protected in law include the right to:

• safe, high-quality care
• dignity, respect and independence
• clear, understandable information
• choose how care is delivered
• raise concerns and have them addressed transparently.

For families, this shift offers reassurance: the system must now operate in a way that empowers the person receiving care, not the provider delivering it.

What families need to know about the new Aged Care Act

If you’re supporting an older parent or loved one, here’s what has already changed and what will continue to evolve in the months ahead.

Changes already in effect from 1 November 2025

Clearer rights and protections
The Statement of Rights applies immediately. Providers must explain an older person’s rights and demonstrate how they uphold them.

Transparency and clearer information
Costs, care plans and service options must now be communicated in plain English. Confusing or unclear fee structures are no longer acceptable.

What’s still to come in 2026

New Aged Care Rules (rolling out in stages)
Some aspects of the new Act, such as full auditing under the strengthened Quality Standards, updated incident reporting requirements, and revised agreement templates are being phased in throughout 2026. Families may receive updated documentation during this time.

CHSP transition (not until 2027)
The Support at Home program has already commenced, replacing Home Care Packages and short-term restorative care. However, the Commonwealth Home Support Programme (CHSP) continues unchanged and will not transition into Support at Home until no earlier than July 2027. If you or your loved one receives CHSP support, you won’t see major changes during 2026.

What aged care providers need to know

The new Act significantly strengthens provider responsibilities, governance, safety expectations and reporting requirements.

Provider responsibilities now in effect

As of 1 November 2025, all approved providers must:

• comply with the Statement of Rights

• meet stronger incident reporting obligations
• demonstrate higher governance and accountability standards
• ensure their workforce is trained in rights-based, person-centred care.

The role of the Aged Care Quality and Safety Commission under the new Act

The strengthened Aged Care Quality Standards now underpin the system, but full assessment against them will be phased in throughout 2026. Providers will have time to adjust systems, policies, workforce training and clinical governance before formal audits begin.
The updated standards emphasise:

• clinical safety
• food, nutrition and hydration
• cultural safety
• governance and leadership
• genuine consumer partnership.

Further guidance materials and assessment pathways will continue to be released throughout 2026.

New aged care provider registration categories and agreements

A major structural change in the new Act is the introduction of provider registration categories. Instead of one broad ‘approved provider’ category, organisations must now register under specific categories that reflect the services they deliver.
This approach improves safety, transparency and consistency. For example:

• A provider offering domestic support only will register differently from a provider offering nursing or clinical services.
• Residential aged care services must meet more rigorous governance and workforce standards.
• Specialised providers, such as culturally specific services, have clearer pathways to register safely.

Families will begin to see these new categories reflected on provider websites and service agreements throughout 2026.

How government funded aged care works under the new Act

While many funding principles remain familiar, the new Act places stronger emphasis on:

• clearer fee structures
• greater oversight of how funds are used
• simpler language in agreements
• a focus on ensuring money is used directly for the benefit of the older person.

Support at Home commenced on 1 November 2025, replacing Home Care Packages. CHSP remains unchanged until at least July 2027, so CHSP users will continue under current funding arrangements for now.

What this looks like for families

These changes can feel abstract until you see how they affect day-to-day life. Under the new system, families should expect:

• More transparency: Costs, care plans and changes must be clearly explained.
• More choice and control: Older people have greater say in who delivers their care and how.
• More accountability: Providers must demonstrate safe, high-quality, respectful care.
• Stronger support when things go wrong: The rights-based framework increases protections and complaint-handling expectations.
• Better alignment of services to needs: New registration categories make it easier to match the right provider to the right type of care.

Ultimately, the new Act aims to make aged care safer, fairer and easier to navigate.

Key takeaways

• The new Aged Care Act commenced on 1 November 2025.
• A formal Statement of Rights now applies to all older people receiving government-funded care.
• Providers face stronger safety, quality and reporting obligations.
• Support at Home has already launched; Home Care Packages have transitioned.
• CHSP continues until no earlier than July 2027.
• Further Aged Care Rules and transitional updates will roll out through 2026.

Need help navigating these changes?

Understanding what’s changed and what it means for your family can feel overwhelming. MyCareSpace connects older Australians, families and providers with clear information and trusted support workers. If you’d like help understanding your options or finding the right support, our team is here to guide you.

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