Federal Government delay new Aged Care Act to ensure ‘an orderly transition’

In a move welcomed by many within the aged care sector, the Albanese Government has announced a delay to the rollout of the much-anticipated new Aged Care Act, citing the need for additional preparation time to ensure a seamless transition.

Originally set to commence on July 1, the new legislation will now come into effect on November 1 2025, pending formal proclamation by the Governor-General, Her Excellency the Honourable Sam Mostyn AC

The government says the decision comes after receiving “advice from the sector and experts that more time will improve the delivery of these reforms and minimise disruption.”

In a statement, the Government emphasised that the delay will give aged care providers crucial breathing room to ready their systems, train staff, and engage with clients about the upcoming changes. It also allows more time for finalising the operational and digital infrastructure necessary for the Act’s implementation, as well as the passage of supporting legislation in Parliament.

Speaking on the decision, Minister for Health and Aged Care Mark Butler acknowledged the scale of the reform and the need for a considered rollout.

“The Albanese Government has made no secret of the fact that this is an incredibly ambitious reform,” he said.

“These are once-in-a-generation reforms, which put older Australians at the centre of aged care.

“We want to make sure that all operational, digital and legislative pieces are in place before the rollout starts.

“This brief deferral allows providers to train their staff and have conversations with their clients, get their IT systems ready and prepare operations for an orderly transition.”

While some were initially eager for the July launch, key advocacy groups have welcomed the delay as a pragmatic move.

COTA Australia CEO Patricia Sparrow said the extension provides necessary time to ensure older Australians are properly informed and the system is ready.

“We welcome the Federal Government’s response to our call for a new commencement date for the Aged Care Act. The move to a 1 November 2025 commencement date acknowledges that more time is needed to inform older people about the changes, to support its successful implementation and build confidence in the system,” Sparrow said.

“The new Aged Care Act is an important step towards a better future for current and future generations of older Australians – one that puts their rights and dignity at the centre of the care system. We wanted a 1 July start date so people didn’t have to wait any longer for their rights than they already have, but ultimately, we concluded it’s far more important to get it right and ensure that older people understand what will happen for them.”

Sparrow added that the extra time must now be used wisely by both the Federal Government and aged care providers to ensure a smooth and effective transition.

The Older Persons Advocacy Network (OPAN) echoed these views, affirming that the delay is the right decision for older adults.

“Until now, OPAN has been steadfast in its call for the Act to be implemented, as promised, on 1 July 2025, because older people can’t get the aged care they need without it,” OPAN CEO Craig Gear OAM said.

“However, over the past weeks, it has become increasingly apparent that, while the macro design of the reform is solid, older people don’t have the necessary information to make informed choices at an individual level, particularly around the new Support at Home program.

“We are also concerned that the appropriate systems aren’t yet in place to ensure continuity of care and services for older people during the transition.

“It is for these reasons, OPAN reluctantly supports the delay announced by the Minister for Health and Ageing and the Minister for Disability and the NDIS Mark Butler and the Minister for Aged Care and Seniors Sam Rae today.”

Read more: Essential questions to ask when choosing the right aged care facility for you