Aged Care Reform & the New Aged Care Act (2024/2025): What You Need to Know

Australia is entering one of the most significant shifts in aged care in decades. With the passing of the Aged Care Act 2024, new rules and systems will officially take effect from 1 November 2025. These reforms aim to improve the safety, quality, and accessibility of aged care services, with a stronger focus on in-home care.

For older Australians, their families, and aged care providers, these changes bring both opportunities and questions. What will the reforms mean in practice? How will they affect costs, services, and eligibility? And what should families and providers do to prepare?

This guide will walk you through everything you need to know about the new Aged Care Act and the Support at Home Program.

Why Reform Was Needed New Aged Care

Over recent years, Australia’s aged care system has faced challenges:

Long waiting lists for Home Care Packages
Complexity and confusion navigating the system
Rising demand as the population ages
Concerns raised in the Royal Commission into Aged Care Quality and Safety (2018–2021) about neglect, insufficient staffing, and quality of care

The Royal Commission recommended a complete overhaul. The government’s response was the Aged Care Act 2024, which will reshape the system to put older Australians’ rights, dignity, and choice at the centre.

Key Features of the Aged Care Act 2024

1. A Rights-Based Approach

For the first time, aged care legislation explicitly recognises the rights of older Australians. This includes the right to:

Safe and high-quality care
Independence, participation, and choice
Transparency about services and fees
Respect for cultural identity and personal preferences

2. Stronger Regulation and Oversight

The Aged Care Quality and Safety Commission will have expanded powers to monitor providers, enforce standards, and act quickly when there are breaches. This is designed to restore trust and accountability in the system.

3. Simplification of Programs – Support at Home

One of the biggest changes is the replacement of existing in-home aged care programs (such as the Commonwealth Home Support Programme and Home Care Packages) with the new Support at Home Program. This will create a single, simplified system.

4. Focus on Transparency and Value for Money

Providers will need to clearly show how funds are being used and ensure that services deliver good outcomes. This means older Australians and their families will have greater visibility over what they are paying for.

5. Greater Workforce Standards

To address shortages and quality concerns, the Act introduces stronger requirements for staff training, workforce planning, and fair working conditions. This ensures carers are better supported and skilled to deliver the right care.

The Support at Home Program Explained

The Support at Home Program is one of the most significant elements of the reform. It is designed to:

Replace multiple existing programs with one streamlined system
Reduce confusion for older Australians and their families
Allow services to be tailored more flexibly to each person’s needs

How it Works New Aged Care:

Assessment – An individual’s needs will be assessed through a new single assessment system.
Funding – Instead of being allocated a fixed “package”, people will receive a budget based on their assessed care needs.
Choice – Older Australians will have more freedom to decide how their budget is spent and which provider delivers their services.
Flexibility – Services can be adjusted as needs change, without the delays currently associated with moving between package levels.

Services Covered May Include:

Personal care (bathing, dressing)
Help around the home (cleaning, meals, gardening)
Nursing and allied health (physio, podiatry, dietitians)
Transport and social support
Technology aids and home modifications

What This Means for Older Australians and Families

The reforms aim to make the system easier to navigate and more responsive. For individuals and families, the main benefits include:

Simpler access: Only one program to apply for, rather than multiple confusing options.
Faster support: Reducing long waiting times for packages.
More control: Families can choose providers and services based on personal needs and preferences.
Stronger protections: Clear rights and safety standards will give peace of mind.
Better use of funds: Transparency ensures care budgets go directly to support, not administration.

However, families should also be prepared for:

Changes in how funding is structured (moving from packages to budgets)
The need to understand and manage budgets more actively
Adjustments during the transition period as providers adapt to the new system

What This Means for Providers

For organisations like Coastwide Community Care, the reforms present both challenges and opportunities.

Compliance: Providers will need to meet higher regulatory standards and reporting requirements.
Workforce Development: Recruiting, training, and supporting qualified staff will be essential.
Consumer Focus: Providers must be more transparent, flexible, and responsive to individual client needs.
Innovation: Opportunities exist to use digital tools, personalised care plans, and new models of service delivery.

While the changes bring extra responsibilities, they also encourage providers to deliver higher-quality, person-centred care. Organisations that adapt early will be best placed to support clients through the transition.

Challenges Ahead

Even with positive goals, the reforms are not without challenges:

Transition Period: Moving clients from current programs into Support at Home may cause temporary confusion.
Cost Concerns: Families are watching closely to see how out-of-pocket expenses are affected.
Workforce Shortages: The sector must address shortages of carers, nurses, and allied health professionals.
Digital Readiness: Some older Australians may find managing budgets or service choices online difficult without support.

Preparing for the Changes

For Older Australians & Families:

Stay informed: Learn about your rights and the new system.
Talk to providers early: Ask how they will transition services into Support at Home.
Plan ahead: Consider likely future care needs so your budget can be managed effectively.

Review compliance: Make sure policies and processes meet the new Act’s requirements.
Invest in staff: Training, recruitment, and retention strategies will be key.
Communicate: Keep clients and families updated about changes.
Embrace innovation: Explore digital care platforms, integrated health services, and person-centred models.

For Providers:

Frequently Asked Questions

1. When does the new Aged Care Act take effect?
From 1 November 2025.

2. What happens to my current Home Care Package?
It will transition into the new Support at Home Program, with budgets based on your assessed needs.

3. Will services cost more?
The government aims to make services more affordable and transparent, but out-of-pocket costs may vary depending on income testing and chosen services.

4. How do I know my rights are protected?
The new Act places older Australians’ rights at its core and gives regulators stronger powers to enforce standards.

5. How can providers help during this transition?
Providers like community nursing in Central Coast will guide clients through the change, ensuring minimal disruption and continued quality care.

Conclusion

The Aged Care Act 2024 and the Support at Home Program mark a new era in aged care for Australia. By focusing on rights, transparency, and person-centred services, the reforms aim to deliver safer, fairer, and more responsive care for older Australians.

For families, this means greater confidence that loved ones will be supported with dignity and respect. For providers, it is a chance to innovate and strengthen trust with the community. At Coastwide Community Care, we are preparing to lead this transition, ensuring that every individual continues to receive the highest quality of care—at home, in the community, and into the future.