New Aged Care Bill Passed, But Uncertainties Remain 

The Australian Parliament passed the Aged Care Bill (Bill) earlier this week, which gives the aged care industry some much-needed certainty that the new Aged Care Act will take effect on 1 July 2025. However, some key issues remain unresolved.

What Does This Mean For Providers? 

The Bill’s passage provides some clarity for aged care providers, outlining key legislative changes that will take effect on 1 July 2025. However, many details remain unclear because how aged care services must operate partly depends on what the Aged Care Rules (Rules) say and these are still in the early stages of development. While the Bill lays the legal foundation, it is the Rules that will specify key requirements.  

The Government is conducting a phased consultation process to shape the Rules. The “Release 2A” phase is currently underway and open for feedback until 6 December 2024. Additional phased releases are scheduled for release up to early March, and the Department has warned these estimated timings are “subject to change. The Rules will not be passed until after that. 

As a matter of practicality, this means providers will not have certainty on key issues like which services can be delivered in exchange for what funding until a brief time before the new Aged Care Act comes into effect.  

That means your organisation needs to be strategic and start preparing now so it can adapt quickly when the Rules are eventually passed.  

For further information about the consultation process, phases and timeframes visit the Government’s information hub here. 

How Should Providers Prepare? 

Providers need to prepare based on what is certain now, while monitoring and implementing change where possible and appropriate based on how the Rules evolve during the consultation process, knowing that nothing is certain until both the Bill and Rules are passed (which is unlikely to occur until March, at the earliest).  

At minimum providers should: 

• Read and understand the Bill: Identify how your organisation needs to change by 1 July 2025 to be fully compliant. You can access the Bill here and download the Government’s plain language factsheet here for a simplified summary.

• Engage in the Rules consultation process: The consultation phases present an opportunity for your voice to be heard. If proposed changes will adversely impact or potentially benefit your organisation, submitting a response may be a prudent investment.

• Read and understand each consultation draft of the Rules: Identify how your organisation *may* need to change to comply with those proposed new laws and prepare to the extent it is possible and appropriate. Starting this process before the Rules are passed as law will make it easier to adapt quickly before the changes take effect.

Let’s Work Together 

Responding to major reforms is not easy, especially when much remains uncertain. Our award-winning aged care legal team is already working with providers to develop and implement strategic changes in response to the reforms. If you’d like to find out more about how we can help you we recommend booking a Discovery Call with Jessica Kinny, Solicitor Director, in 2025. Click here to book a call now.

 This blog post does not constitute legal advice and should not be relied upon as such. It is a general commentary on matters that may be of interest to you.  Formal legal or other professional advice should be sought before acting or relying on any matter arising from this communication.

Subscribe

Sign up with your email address to receive news and updates.