Australia’s aged care system is going through its single most significant transformation in decades, with the new 2024 Aged Care Act (commenced in 2025) placing the rights and dignity of older Australians at the centre of the law.
But what are the changes, why did it change in the first place, and who will be affected? In the following sections, we’ll break down the new rules of the 2026 aged care landscape and explore what this rights-based future looks like in practice.
What Is the Aged Care Act?
The Aged Care Act is Australia’s primary legislation that governs how aged care services are funded, regulated, and delivered across the country. In simple terms, it defines how older Australians receive care and support and the standards providers must meet to deliver safe, reliable, and respectful care to every older Australian and their families.
As of 2024, significant changes have been made to the old Aged Care Act, which is why the new one is now called the Aged Care Act 2024, reflecting a series of updated reforms to Australia’s aged care system. However, although it is titled the Aged Care Act 2024, it should be noted that the changes to the aged care system were actually implemented in 2025.
Why Did the Aged Care Act Change?
The Aged Care Act, as we know it today, was introduced in response to the 2018-21 Royal Commission into Aged Care Quality and Safety. The inquiry was established to investigate systemic failures within the aged care sector and address reports of abuse brought to light by the Australian Broadcasting Corporation.
The Royal Commission was announced in 2018, with its findings and final report being handed down in 2021, detailing 148 recommendations designed to fundamentally reform the aged care system. We’ll go into depth on the key changes below; however, it should be noted that this transition is a multi-year process that reached its most critical milestone, with the new aged care changes officially commencing on November 1, 2025.
Key Findings
Here are the core issues identified that necessitated the new aged care reforms commenced in 2025:
- A “Shocking Tale of Neglect”: The interim report (2019) used this exact phrase to describe the prevalence of malnutrition, physical restraint, and avoidable infections.
- Rationing vs. Entitlement: One of the most significant findings was that the system was built on “rationing” care (based on budget) rather than an “entitlement” to care (based on need).
- Ageism: The Commissioners noted that the system’s failings were underpinned by deep-seated ageism within society and government policy.
- Workforce Crisis: It highlighted that the workforce was undervalued, underpaid, and often underutilised.
Key Recommendations
The final report handed down, titled ‘Care, Dignity and Respect’, highlighted that the existing aged care system was substandard at best, and required a total overhaul. Here is how those recommendations were categorised:
- A New Aged Care Act: The primary recommendation in the final report was to move away from the 1997 Aged Care Act, focusing on the rights of older people rather than solely on provider regulation.
- A New Governance Model: Create new independent bodies, such as an Aged Care Safety and Quality Authority, that independently regulates providers and enforces safety standards.
- Quality & Safety: A new set of Aged Care Quality Standards, stricter regulation of restrictive practices (restraints), and better clinical care for issues like pressure sores, falls, and weight loss.
- A Program Redesign: Creating a single aged care program that combines home care and residential care, moving away from fixed “places” and “packages” toward a system where anyone assessed as needing care is entitled to receive it immediately.
- Mandatory Staffing Levels: Introducing mandatory minimum staff time, increasing wages, and mandating that every residential facility has a registered nurse on site 24/7.
- Diversity & Inclusion: Specific pathways and funding for Aboriginal and Torres Strait Islander people, people in regional/remote areas, and those from diverse (CALD) or LGBTQIA+ backgrounds.
- A New Funding & Financing Model: Shifting from a “rationed” budget to a guaranteed “entitlement” system where every person assessed as needing care is legally funded to receive it.
The goal is simple: to ensure that every older person in Australia can live an active, self-determined, and meaningful life, supported by a system that prioritises their rights, dignity, and safety.
What Does Support Look Like After the 2025 Aged Care Reform
Now, you might have read all of the above and thought that it’s all just a bunch of bureaucratic jargon. If you did, that’s okay. Here is what you really need to know:
The Commonwealth Home Support Programme (CHSP)
The CHSP is staying the same, at least for now (we’ll explore this in depth more below). It is the Australian Government’s entry-level aged care program. It is designed to help older Australians live independently and safely at home by providing small amounts of practical, subsidised support.
Examples of support provided under this program include (not exhaustive):
- Allied health and therapy services
- Therapeutic services for independent living, e.g., acupuncture
- Domestic assistance, including e.g., general house cleaning
- Home maintenance and repairs
- Nursing and personal care
- Social support and community engagement
Support at Home
Before the reform, the system for complex at-home care was split into two parts: 1) Home Care Packages (HCP), and 2) Short-Term Restorative Care (STRC), which, the Royal Commission found, was too slow and confusing for recipients.
What replaced these programs is the new Support at Home Program, which has been designed to help older individuals remain independent and living in their own homes for longer, by providing simplified, flexible access to services tailored to individual needs across three categories:
- Clinical Care: E.g., Nursing, occupational therapy, and physiotherapy
- Independence Support: E.g., Personal care (showering/dressing), transport, and respite.
- Everyday Living: E.g., Cleaning, gardening, and meal preparation.
It is worth noting that Support at Home also introduced three short-term pathways to fund assistive technology and home modifications, as well as restorative care and end-of-life care, ensuring that participants can access one-off funding for equipment or intensive support exactly when they need it.
To access government funding, individuals must complete a formal assessment to identify their specific needs. Under the Support at Home program, participants are assigned one of eight funding classifications. This classification sets their quarterly budget, providing a clear and reliable amount of money to pay for the services, equipment, and clinical care they need to live independently.
Changes for Current Home Care Package Recipients
Moving to the new Support at Home program is designed to be automatic and stress-free. Whether you have been receiving care for years or recently joined, the “No Worse Off” principle ensures your services and budget are protected. Below is a breakdown of how the transition affects you based on your start date.
Grandfathered Participants
If you were assessed or approved for a package on or before September 12, 2024, you are “grandfathered.” This means the percentage you contribute to your care will not increase under the new system.
You are not required to apply for the new Support at Home Program; instead, you were automatically transitioned on November 1, 2025. It’s worth noting that a “No Worse Off” principle applies here, meaning that if you didn’t pay fees before the reform, you won’t pay them now, and if you do pay, your fees remain the same.
Transitional Participants (Hybrid Clients)
Transitional Participants are those who were approved for, or started receiving, a Home Care Package (HCP) between September 13, 2024, and October 31, 2025.
Just like grandfathered participants, as a transitional participant, you are not required to apply for Support at Home, and instead will be transitioned automatically. As your previous HCP was mapped on a four-tier system, you will be automatically moved to the equivalent funding level in the new system, to ensure continuity of care and that your available service hours remain stable.
What the Future Looks Like
The CHSP will transition to the new Support at Home Program on June 30, 2027, which means that if you are currently receiving basic services, nothing will change for you in the immediate future. The goal, however, is to have the CHSP fully merged into the Support at Home program, as it was on November 1, 2025, for HCP and STRC.
Previously, if you were on a basic CHSP service (like once-a-week cleaning) and your health declined, you often had to leave that program and wait on a long list for a Home Care Package. By 2027, there will be no “switching” programs. You will simply stay in the Support at Home program, and your funding classification (one of the 8 levels) will be adjusted up or down as your needs change.
Disclaimer: The information provided reflects the aged care landscape as of April 2026. While the Aged Care Act 2024 has commenced, specific program details are subject to ongoing government updates. Readers should consult My Aged Care or a certified financial advisor for personalised advice regarding their specific circumstances and the “No Worse Off” principle.
