As of 1 July 2025, Australia’s aged care system has entered a new phase of reform following a series of major government initiatives rolled out over the past year. Key changes include the implementation of the Aged Care Act 2024, the Government’s formal response to the Aged Care Taskforce recommendations, and the launch of the Support at Home program. These reforms are designed to enhance care quality, improve provider accountability, and deliver more tailored support for older Australians.
Aged Care Act 2024 Now in Effect: Raising Standards Across the Sector
The Aged Care Act 2024, now in force, replaces previous legislation to provide a more robust legal framework for aged care services in Australia. The new Act enshrines core principles aimed at improving the experience of aged care recipients and strengthening sector oversight.
Key reforms include:
- Enhanced Quality of Life: A focus on personalised, dignified care across home, community, and residential aged care settings.
- Stronger Provider Obligations: Providers are now subject to clearer standards and tighter compliance measures, with a regulatory focus on ensuring consistent service quality and safety.
Educational materials—including fact sheets and plain-language summaries—are available to help providers and families understand the practical implications of the new Act.
Government Action on Aged Care Taskforce Recommendations
In response to the Aged Care Taskforce’s March 2024 report, which outlined 23 recommendations to improve sustainability and equity in the sector, the Australian Government has implemented a revised funding model effective 1 July 2025.
Key funding reforms include:
- Accommodation Payments: New guidelines support a balance between affordability and high-quality residential care facilities.
- Residential Care Contributions: Reforms address fee equity, ensuring individuals contribute fairly based on income and means.
- Transitional Protections: Individuals receiving residential aged care before 30 June 2025 are safeguarded under a “no worse off” principle, preventing unexpected increases in out-of-pocket expenses.
The Department of Health and Aged Care has released detailed examples and case studies to help families and providers understand how these reforms apply in real-world scenarios.
Support at Home Program Now Operational
The Support at Home program, launched on 1 July 2025, has officially replaced the Home Care Packages Program and the Short-Term Restorative Care Programme (STRC). This new initiative is designed to help older Australians maintain independence and remain in their own homes for longer.
Program highlights:
- Eight Levels of Tiered Funding: Care recipients now access support aligned with their assessed needs, with funding packages of up to $78,000 per year.
- Home Modifications & Assistive Technology: Funding is available for safety-focused modifications and essential technology, supported by a streamlined equipment loan scheme.
- Budget Continuity for Existing Clients: Individuals approved for Home Care Packages by 30 June 2025 have transitioned to the new model with funding aligned to their approved care level. Unspent funds from existing packages have been retained for continuity.
Transition protections are in place for those already engaged with the system prior to the September 2024 reforms. Recipients continue to contribute under the same terms to avoid any sudden financial burden.
It’s important to note that CHSP (Commonwealth Home Support Programme) clients are unaffected by these changes until at least 1 July 2027, when a full transition to Support at Home is expected.
Conclusion
With all major reforms now in effect, Australia’s aged care landscape is undergoing one of its most significant transformations in recent history. The focus is now firmly on improving care quality, increasing transparency, and delivering flexible, needs-based support across both residential and home care settings.
These reforms are particularly relevant to families and providers seeking aged care Perth options that align with the latest standards, whether through home-based services or transitioning to an aged care home Perth.
For up-to-date information, resources and implementation support, visit the official Department of Health and Aged Care website.