Putting Rights and Workforce at the Centre: A Strategic View on Australia’s Aged Care Reforms

Australia’s aged care sector is entering a serious phase of complex reform. The new Aged Care Act 2024 comes into effect on 1 November 2025, after a delay that allows providers more time to prepare. This delay has been alleged by proponents to reflect the government’s responsiveness to sector feedback and readiness concerns. The Act introduces a rights‑based framework that positions older people at the centre of service delivery. It mandates stronger quality standards, establishes a clear Statement of Rights, enhances regulatory powers, and introduces the new Support at Home program.

For leaders, this transition brings both opportunity and challenge. The strategic imperative is clear. You must align operations with the new regulatory demands while preserving a positive culture and continuity of care.

What Leaders Should Prioritise

1. Embed the Rights‑based Approach
The Act’s Statement of Rights appears to aim to give older people the choice, agency, safety and respect they deserve. Your leadership team must ensure that staff training, communication materials and service design reflect these principles. Embedding a culture that honours autonomy will not just meet compliance, it strengthens trust and improves client experience.

2. Strengthen Clinical Leadership
Registered nurses must now be on duty 24/7 in residential aged care under the new framework, with each resident entitled to at least 215 minutes of care per day, including 44 minutes from an RN. That shift places additional demand on nurse recruitment, development and rostering. Now is the time to invest in transition‑to‑practice programs, nurse leadership, and supportive supervision that build resilience and clinical confidence.

3. Prepare for New Funding and Fee Structures
Management fees are capped at 10% new co‑contribution funding models are introduced, and residential care faces changes such as the hotelling supplement and the non‑clinical care contribution fees. Support at Home replaces Home Care Packages with time‑based billing and a new pricing structure. Your finance team must understand these changes and model projections that maintain solvency while assuring service quality.

4. Meet Safety and Compliance Standards
Safe Work Australia’s Model Code of Practice for healthcare and social assistance sets a new minimum benchmark for occupational health and safety. It covers physical, psychosocial and biological hazards. Your operational leadership must conduct a gap analysis, update policy, train staff, and engage frontline voices in a positive safety culture.

5. Tackle Workforce Planning Head‑On
Many parts of the sector still lack a robust workforce strategy. The 2022–2025 Workforce Action Plan is now outdated and must be replaced with a solid, data‑driven roadmap that navigates recruitment, retention, and professional development. Leaders should act on workforce insights now—before staffing pressures threaten service delivery or burn out sets in.

Does all this lead to a positive strategic outlook?

Yes, the reform agenda is complex. But with thoughtful planning, these changes can galvanise leadership, strengthen care delivery, and enhance client dignity.

A rights‑based system positions care quality as a core value. Stronger nurse leadership ensures clinical safety and confidence. New funding models, while challenging, offer a chance to innovate financially. Safety standards protect both staff and clients. And workforce strategy builds long‑term resilience.

As the sector moves toward November 2025, proactive leaders can frame this moment as a turning point for better, more sustainable care. Those who act early, plan thoughtfully and listen to both staff and clients will lead the sector’s transformation.

References

Australian Government Department of Health, Disability and Ageing. (2025). About the new rights‑based Aged Care Act [Web page]. Retrieved August 2025.

Australian Government Department of Health, Disability and Ageing. (2025). Strengthened Aged Care Quality Standards – August 2025 [Publication]. Retrieved August 2025.

Australian Government Department of Health, Disability and Ageing. (2025). New ways of working in aged care [Web page]. Retrieved July 2025.

Australian Government Department of Health, Disability and Ageing. (2025). Aged care workforce news [Web page]. Retrieved May 2025.

Australian College of Nursing. (2025). Registered nurses take on more leadership responsibilities in aged care [Expert insight]. Retrieved June 2025.

Workday. (2025). Navigating the Aged Care Act: Key priorities for providers [Blog]. Retrieved July 2025.

OTA Australia. (2025). Advocacy and policy update for 7 August 2025 [News]. Retrieved August 2025.

Safe Work Australia. (2025). New safety standards unveiled for Australia’s care workforce [News]. Retrieved July 2025.

ANMF. (2025). Response to the 2025 Progress Report on Implementation of Royal Commission aged care recommendations [PDF]. Retrieved March 2025.

Commons summary of Aged Care Act 2024. (2025). Aged Care Act 2024. Retrieved July 2025.

Australian Government Delays New Aged Care Act. (2025). Australian Government delays new Aged Care Act until November 2025 [News]. Retrieved July 2025.