A time for clarity and commitment: Navigating the transition to the new Aged Care Act

The journey toward a reformed aged care system in Australia has reached a critical juncture, marked most recently by the Government’s decision to defer the commencement of the new Aged Care Act to 1 November 2025. For Catholic Health Australia and our members, this decision – announced by Ministers Mark Butler and Sam Rae in early June – was a welcome and important recognition of the real-world challenges facing both providers and the older Australians we serve.

CHA and its members have long supported reform. A stronger, more transparent and person-centred aged care system is in everyone’s interest. However, reforms of this magnitude require time, clarity, and genuine partnership. The deferral reflects months of advocacy from CHA and others, warning that the original timeline risked unintended consequences – forcing providers to enter service agreements without critical information, and potentially disrupting care for thousands of older people.

Since the announcement, CHA has continued to work closely with the Government and Department of Health and Aged Care to ensure the extra time delivers meaningful outcomes. In June, CHA met with the new Aged Care Minister, Sam Rae, and more recently in July with Liz Hefren-Webb, the Aged Care Quality and Safety Commissioner. These discussions are part of a sustained and practical engagement strategy focused on helping the sector safely and effectively transition older Australians to the new legislative environment.

There remains much to be resolved. From the finalisation of the Rules that underpin the Act, to the clarification of co-contribution amounts, to the processing of hardship provisions and sub-contracting arrangements – CHA has been actively elevating the concerns of our members and other providers. Our goal is to ensure that providers have financial, legal and logistical certainty around key elements of the Act – for example Support at Home service agreements.

We also continue to call for transparency around price caps, financial and prudential standards, and the higher everyday living fee (HELF) transition dates. Our members need this information not only to prepare but to responsibly communicate with the older Australians they care for.

In the midst of this complexity, one thing is clear: CHA is committed to supporting our members every step of the way. We will continue to bring our collective voice to government and regulators, ensuring that reforms are implemented in a way that protects the dignity and wellbeing of older Australians while sustaining the viability and values of Catholic aged care services.

The next few months will be critical. We urge members to stay engaged, keep raising concerns, and share what’s working on the ground. Together, we can help shape an aged care system worthy of the people it serves.

Alex Lynch is Director of Aged and Community Care at Catholic Health Australia