Navigating the New Aged Care Act: What It Means for Healthcare Providers

Australia’s aged care system is moving through major reform. The new Aged Care Act 2024 and related changes aim to strengthen safety, accountability and the rights of older people. These updates apply to residential aged care, home care, community services, allied health and any organisation delivering funded aged care support.

Aged care workers should understand what the reforms in health care mean to help maintain confidence with residents, families and regulators.

Why the aged care reforms matter

The reforms are designed to improve the quality of care and make responsibilities clearer for providers. Organisations must maintain accurate documentation, protect residents’ rights and demonstrate how they meet obligations under the new Act.

A stronger focus on rights and protection

The updated framework strengthens the rights of older Australians. It includes clearer protections relating to dignity, choice, cultural safety, privacy and communication. Providers may need to review policies, train staff and embed these rights into everyday practice.

Increased regulatory oversight

Regulatory processes now place greater emphasis on transparency and accountability. Providers may need to strengthen incident reporting, governance systems, workforce records and documentation to align with the new expectations.

What this means for workforce capability

The reforms highlight the importance of staff competence and ongoing training. Providers may need to invest in education around clinical care, personal care, infection prevention, medication management and communication. Documented training helps demonstrate compliance and reduces operational risk.

Greater emphasis on quality and safety systems

Providers are expected to maintain strong quality and safety systems. This may include clearer governance structures, improved incident management, regular reviews of care outcomes, and better monitoring of residents’ health and wellbeing. Consistent documentation is essential to show that standards are being met.

Aligning business processes with the new requirements

It may be helpful to break the transition into practical actions such as:

1. Reviewing governance responsibilities to ensure they reflect updated requirements.
2. Updating policies and procedures to align with the new legislation.
3. Strengthening records for clinical decisions, service delivery and incident responses.
4. Providing regular staff training that meets current standards.
5. Checking that contractors and service partners meet compliance expectations.
6. Communicating changes clearly with staff, residents and families.

Considering risk and insurance as part of preparation

Aged care providers face operational, clinical and reputational risks. Insurance cannot replace compliance, but it may support businesses when incidents occur. Depending on the services and structure, relevant products may include Public Liability insurance, Professional Indemnity insurance, Management Liability insurance and Cyber Liability insurance.

What this means for small and medium aged care providers

Smaller organisations may feel the impact of reforms more strongly due to limited time and resources. A step-by-step approach helps make the transition manageable. Annual reviews ensure policies and systems remain aligned with the updated requirements.

A proactive approach builds confidence

Understanding the new Aged Care Act helps providers maintain safety, consistency and trust. When reviewing systems early, strengthening governance processes and staying aware of legislative updates, business owners and workers give organisations a stronger foundation for the future of aged care in Australia.