In today’s dynamic and increasingly regulated Australian aged care landscape shaped by the ongoing Australian aged care reforms, providing exceptional and safe care requires more than just dedication – it demands a robust and integrated management system. At Skefto, we understand the unique challenges faced by residential and community aged care providers, especially with the aged care reforms 2025 on the horizon.
That’s why we’ve developed our Governance, Risk, Incident, Complaints, and Safety Management platform, a comprehensive suite of services designed specifically to streamline your governance, risk, safety, complaints, and incident management processes. This allows you to focus on what truly matters: the well-being of your residents in this evolving regulatory environment brought about by the aged care reforms Australia.
On 1 July 2025 the aged care system we have navigated since 1997 is changing in very significant ways due to the aged care reforms 2025. Are you ready for the enormity and breadth of requirements coming to aged care providers with these Australian aged care reforms? Here is a summary of the key changes related to Australian residential and community aged care legislation coming into effect on 1 July 2025:
1. New Aged Care Act:
A new rights-based Aged Care Act 2024 (Act) will commence, replacing the Aged Care Act 1997 as part of the aged care reforms 2025.
The new Act claims to put the rights and needs of older people at the centre of the aged care system in alignment with the broader Australian aged care reforms.
The Act includes a Statement of Rights for older people accessing government-funded aged care, covering aspects like independence, autonomy, respect, safety, quality care, and the right to raise concerns without fear of reprisal. Providers will have a positive duty to act in accordance with these rights, reflecting the principles embedded in the aged care reforms Australia.
The Act introduces the concept of supported decision-making, allowing older people to register individuals to assist them in their decision-making, supporting autonomy in line with the aged care reforms.
Whistleblower protections will be enhanced for those reporting issues within the aged care system, further strengthening transparency in response to the Australian aged care reforms.
A new Aged Care Regulatory Model will be implemented, aiming for a more streamlined and risk-based approach to regulation. Existing providers will be “deemed” registered initially under new registration categories, with a staggered re-registration process to follow within three years. Non-corporate entities can also register under this new framework driven by the aged care reforms 2025.
There will be increased transparency through a new public register of registered providers and published sanction information, a core feature of the aged care reforms Australia.
The Act mandates a review of the legislation within three years of commencement, ensuring ongoing adaptation to the Australian aged care reforms.
2. Strengthened Aged Care Quality Standards:
The current eight Aged Care Quality Standards will be replaced by seven strengthened standards from 1 July 2025 in accordance with the aged care reforms 2025.
The aim is for the standards to be more measurable, detailed, and person-centred, reflecting the new Statement of Rights and using clearer language that aligns with the aged care reforms Australia.
The new standards are:
- Standard 1: The Person (Consumer dignity & choice)
- Standard 2: The Organisation (Assessment & planning)
- Standard 3: Care and Services (Personal care & clinical care)
- Standard 4: The Environment (Services & supports for daily living & Service environment)
- Standard 5: Clinical Care (Falls under Personal care & clinical care in the current standards)
- Standard 6: Food and Nutrition (New standard)
- Standard 7: The Residential Community (Human resources & Organisational Governance)
These standards will have measurable outcomes and suggested actions to support implementation, as required by the Australian aged care reforms.
3. New Support at Home Program:
The new Support at Home Program (S@H) will commence on 1 July 2025, replacing the Home Care Packages Program and the Short-Term Restorative Care Programme as part of the aged care reforms Australia. The Commonwealth Home Support Programme will transition no earlier than 1 July 2027.
S@H aims to provide a more seamless and tailored system of in-home care with more levels of funding, reflecting the changes outlined in the aged care reforms 2025.
Existing Home Care Package recipients will move to the new program with their current funding levels and any unspent funds, ensuring continuity through the Australian aged care reforms.
The program will include support for home modifications and faster access to assistive technology, key components of the evolving aged care reforms.
4. Changes to Residential Aged Care Funding and Payments:
Refundable Accommodation Deposits (RADs) and Daily Accommodation Payments (DAPs):
Aged care facilities will be required to retain 2% per annum of the RAD balance, deducted monthly for a maximum of 5 years (total 10% maximum retention), in line with the aged care reforms 2025.
DAPs will be indexed twice per year in line with CPI changes, as specified in the Australian aged care reforms.
The maximum room price that can be charged without approval will increase from $550,000 to $750,000 reflecting adjustments in the aged care reforms Australia.
Ongoing Care Fees
The Hotelling Supplement Contribution (HSC) will be introduced to fund day-to-day expenses (in addition to the basic daily fee), capped at $12.55 per day, depending on the resident’s assessable assets and income under the guidelines of the aged care reforms 2025.
The Non-Clinical Care Contribution (NCCC) will replace the means-tested care fee as a contribution towards non-clinical care costs, capped at $101.61 per day, based on assessable assets and income. This is a key financial reform of the aged care reforms Australia.
The NCCC will have a lifetime cap: no longer payable after four years in care or when $130,000 (indexed) in total NCCCs have been paid. Contributions made in the Support at Home program will count towards this cap, consistent with the principles of the Australian aged care reforms.
Clinical care costs will be 100% subsidised by the government in residential aged care, reflecting commitments within the aged care reforms 2025.
No Worse Off Principle: Individuals who were in residential aged care or approved for home care on or before 12 September 2024, will generally not be financially disadvantaged by these changes introduced in the aged care reforms Australia.
5. Other Key Changes
Expansion of the National Aged Care Mandatory Quality Indicator Program: This will include enrolled nurses, allied health, and lifestyle staffing measures in residential aged care, with reporting commencing between 1 July and 21 July 2025, as part of the aged care reforms 2025. Work is underway to expand quality indicators to in-home aged care in line with the broader Australian aged care reforms.
First Nations Aged Care Assessment System: This will commence as part of the new single assessment workforce to simplify access to aged care for First Nations people, aligned with the aged care reforms Australia.
Higher Everyday Living Fee: This will replace Additional Service Fees and Extra Services Fees for new residents in residential care. Providers must transition all agreements to this structure by 30 June 2026 under the requirements of the aged care reforms 2025.
New Compliance Algorithm for Star Ratings: This will be published on the My Aged Care website, reflecting the regulatory reforms introduced by the Australian aged care reforms.
These changes represent a significant reform of the Australian aged care reforms, focusing on placing the rights and needs of older people at the centre, enhancing governance accountability, risk management requirements, quality and safety, and creating a more integrated and equitable system.
Your governance and risk management accountability are increasing with the aged care reforms 2025. Are you prepared?
Skefto exists to assist enterprises to provide well governed, risk managed, safe delivery of services to their clients whilst facilitating high quality, proactive incident management and complaints processes within the Skefto platform. The Skefto platform offers a unified solution, seamlessly integrating critical functions to enhance efficiency, demonstrate to and ensure key stakeholders an acceptable standard of compliance, and culture of continuous improvement aligned with the Australian aged care reforms.
Skefto’s Key Benefits for You:
Strengthening Governance & Compliance:
- Centralise policy and procedure management, ensuring easy access and version control consistent with the aged care reforms Australia.
- Simplify audit preparation with comprehensive documentation and reporting capabilities aligned with the latest Australian aged care reforms and Aged Care Quality Standards.
- Track and manage regulatory requirements, ensuring ongoing compliance and reducing the risk of non-conformance under the aged care reforms 2025.
- Improve accountability and transparency across all levels of your organisation.
Proactive Risk Management:
- Identify, assess, and mitigate potential risks across all aspects of your operations, from resident and client safety to financial stability in line with the aged care reforms Australia.
- Implement and monitor risk control measures effectively.
- Gain valuable insights through risk registers and reporting dashboards, enabling proactive decision-making.
Prioritise Care Recipient and Staff Safety:
- Streamline hazard identification, reporting, and resolution in accordance with the requirements of the aged care reforms 2025.
- Manage safety training and competency records efficiently.
- Facilitate effective communication of safety alerts and procedures.
- Contribute to a safer working environment for your staff and a secure living environment for your residents/clients – even for those living in their own home under the Australian aged care reforms.
Efficient Complaints Management:
- Establish a clear and accessible process for residents/clients, families, and staff to lodge complaints aligned with the aged care reforms Australia.
- Track and manage complaints efficiently, ensuring timely and appropriate resolution.
- Analyse complaint data to identify trends and areas for improvement in service delivery.
- Demonstrate a commitment to responsiveness and continuous improvement consistent with the aged care reforms 2025.
Effective Incident Management:
- Simplify the reporting, investigation, and analysis of incidents, including near misses.
- Implement corrective and preventative actions to minimise the recurrence of incidents.
- Maintain comprehensive incident records for compliance and learning purposes.
- Improve resident and client safety and reduce potential harm in line with the Australian aged care reforms.
Why Choose Skefto?
- Australian Expertise: We are an Australian company deeply committed to understanding the specific needs and regulatory environment of the Australian aged care reforms 2025.
- Tailored for Aged Care: Skefto is not a generic solution; it has been purpose-built to meet the unique complexities of Australian residential and community aged care under the aged care reforms Australia.
- User-Friendly Interface: Our intuitive platform is designed for ease of use by staff with varying levels of technical expertise, minimising training requirements and maximising adoption.
- Scalable and Flexible: Skefto can adapt to the size and evolving needs of your organisation, whether you operate a single facility or home care support agency or operate a large network of services in the context of the aged care reforms 2025.
- Dedicated Support: Our Australian-based support team is readily available to provide comprehensive assistance and ensure your ongoing success.
- Future-Focused Innovation: We are committed to continuous development, ensuring Skefto remains at the forefront of Australian aged care service management technology aligned with the Australian aged care reforms.
Here are some useful sector reform resources
- Board Briefing Toolkit: Aged Care Reform
Additional Government Resources and Information
- Aged Care Quality and Safety Commission: New Aged Care Act;
- Aged Care Quality and Safety Commission: Aged Care Sector Readiness Plan
- Aged Care Quality and Safety Commission: Strengthened Quality Standards framework analysis;
- Aged Care Quality and Safety Commission: Stronger Standards, Better Aged Care Programs;
- Department of Health and Aged Care: About the new aged care regulatory model;
- Department of Health and Aged Care: A new model for regulating aged care – Consultation Paper 2;
- Department of Health and Aged Care: Home Support Programme 2025-27 Extension and Reform Update Webinar
- Department of Health and Aged Care: New Aged Care Act;
- Department of Health and Aged Care: Support at Home Program Handbook;
- Department of Health and Aged Care: Support at Home Program Manual – A Guide for Registered Providers;
- Department of Health and Aged Care: The Aged Care Quality Standards;
- Department of Health and Aged Care: What the new Aged Care Act may mean for you; and finally
- The much awaited new Rules released on 1 April 2025 and can be found here at Consultation on the new Aged Care Act.
But there is a lot of needed documents still missing …
At 31 March 2025 there were still several important documents missing from the regulator that providers need to adequately prepare for the anticipated implementation of the new Aged Care Act, as follows:
Guidance documents:
- New Aged Care Act Policy Manual;
- Supported Decision-Making Framework;
- S@H Program Assurance Framework and Program Assurance Plan;
- Assistive Technology and Home Modifications (AT-HM)Scheme Guidelines; and
- Restorative Care Pathway Clinical Guidelines.
Specific to S@H Manual:
- Continuity of Care (the new terminology for security of tenure);
- Provider obligations and registration conditions;
- Additional details re wellness and reablement;
- Additional details re the S@H priority system and access to interim funding;
- Service agreements;
- Income and assets assessments;
- End-of-Life Pathway form;
- Service Australia claiming guidance;
- Cancellations and no-shows;
- Monthly Statements; and
- Program linkages (S@H relationships with CHSP, Transition Care, Residential Care, MPS, ATSI aged care, NDIS and disability support for older Australians).
Skefto will continue to provide a watching brief on these important documents and advise clients accordingly.
