With the implementation of the Aged Care Act 2024 (Cth) (Act) fast approaching on 1 July 2025, aged care providers across Australia must prepare for the transition from the Aged Care Act 1997 (Cth) (Current Act) to the Act. For this purpose, it is crucial that new and existing providers understand the changes that will take place in the lead up to, and the commencement of the Act.
Will I still be an approved provider after 1 July 2025?
Yes, existing approved providers which are active will automatically become "registered providers" under the Act. The initial registration period will vary, lasting anywhere between 3 months to 3 years and 3 months, depending on the recency of the provider’s last audit.
What’s the process for becoming an aged care provider under the Act?
Under the Act, entities wishing to provide funded aged care services must meet eligibility requirements and apply for registration. If approved, the entity will become a "registered provider" and can deliver care within their nominated category (e.g., residential care or home and community services) during their registration period (generally 3 years).
Providers in the residential care category must also ensure their homes are approved, which can be done standalone or as part of the 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 provider’s registration.
What does the change to allocated places mean for residential care providers?
Government funding for residential care is distributed through a process called allocated places. Currently, these places are assigned to the providers who deliver aged care services.
However, starting 1 July 2025, most allocated places will instead be assigned directly to individuals receiving care, giving them more choice and control over their providers. This change will not apply to providers delivering services under certain specialist aged care programs.
Despite this, the existing allocated places will remain informative during the transition period. On 1 July 2025, existing residential care homes will be automatically approved under the 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 home under the Current Act.
Do I need to redo applications under the Act if I’ve already applied under the Current Act?
No, most applications submitted under the Current Act that are not finalised by 1 July 2025 will be carried over to their counterparts in the new Act. While many processes will remain similar, providers may be asked to provide additional information if needed. Any sanctions or non-compliances already in place will also remain under the Act.
Cowell Clarke’s Aged Care and Retirement Living team continues to assist aged care providers throughout the transition, ensuring compliance and supporting providers in achieving the best possible outcomes.
For further guidance, please contact:
Claudia Van Eckeren, Lawyer
Megan Jongebloed
(Head of Aged Care)
08 8228 1107
(Lawyer)
