With the implementation of the Aged Care Act 2024 (Cth) (Act) fast approaching on 1 July 2025, aged care providers across Australia are beginning their preparations for the major reforms.
In order to ensure a seamless transition from the current Aged Care Act 1997 (Cth) (Current Act) to the new Act, it is crucial that new and existing providers of aged care services understand the changes that will take place in the lead up to, and the commencement of the Act.
I’m an approved provider, will I still be an approved provider after 1 July 2025?
Yes, if you are an active provider, however, “approved providers” will now be called “registered providers”. Existing approved providers will be automatically registered as registered providers under the Act. This initial registration period will last anywhere between 3 months to 3 years and 3 months, and will generally depend on the last time the provider or its services underwent an audit.
The Commonwealth is currently in the process of contacting approved providers to ensure a smooth transition process, by confirming the type of services offered, how many allocated places are held, and updating contact details.
I’m thinking about becoming an aged care provider - how does this process work under the new Act?
Under the Act, entities wishing to deliver funded aged care services must meet the eligibility requirements and make a registration application. If approved, the newly minted “registered provider” will be allowed to deliver care in its registration category (such as residential care or home and community services) for the nominated registration period (generally 3 years).
Providers in the residential care category must also ensure that their residential care home obtains approval, which can be done standalone or as part of the provider’s registration process. A residential care home’s approval does not have an expiry date and will only end if revoked or the home is no longer covered by the registered provider’s registration.
Allocated places are no longer being assigned to most providers – what does this mean for me as a provider of aged care?
Government funding for residential care is distributed through a process called allocated places. Currently, allocated places are assigned to the approved providers who deliver aged care services.
On 1 July 2025, most allocated places will now be assigned directly to the individuals receiving care. The aim of this move is to give individuals more choice and control over their care provider. This change does not apply to providers who deliver services under certain specialist aged care programs.
Despite the move away from allocated places in the future, the existing allocated places will still be an important benchmark for residential care homes during the transition period.
On 1 July 2025, existing residential care homes will automatically be approved under the new Act and allocated a number of beds that reflect the capacity of the home. Although the exact number of beds may vary, this number is to be based on the total amount of allocated places already held by the residential home under the Current Act.
I’ve already made an application under the Current Act – do I have to reapply once the new Act comes into force?
No - most applications submitted under the Current Act which are not finalised on 1 July 2025 will be carried across to their counterparts in the new Act. Whilst many of these processes remain the same between the Current Act and new Act, entities may be asked to provide further information if required.
Similarly, any sanctions and non-compliances already in place under the Current Act will follow the entity under the new Act.
Cowell Clarke’s dedicated Aged Care and Retirement Living team continues to work closely with aged care providers to ensure the best possible outcomes are achieved whilst ensuring compliance.
For further information, please contact our Aged Care, Retirement Living and Health team.
This publication has been prepared for general guidance on matters of interest only and does not constitute professional legal advice. You should not act upon the information contained in this publication without obtaining specific professional legal advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication and to the extent permitted by law, Cowell Clarke does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting or refraining to act in relation on the information contained in this publication or for any decision based on it.