New Aged Care Act 2024: Provider Obligations Explained (2026 Update)

Last updated: August 11, 2026 | Reading time: 24 minutes | Reviewed by MedHireHub editorial team

What Is the New Aged Care Act 2024?

The Aged Care Act 2024 (No. 104, 2024) is the most significant reform to Australian aged care in three decades. It replaces the Aged Care Act 1997 and implements the majority of recommendations from the Royal Commission into Aged Care Quality and Safety. The Act received Royal Assent on 2 December 2024 and commenced on 1 November 2025.

The Act fundamentally reshapes how aged care is regulated, funded, and delivered in Australia. It introduces a new provider registration model, strengthened Quality Standards, a statutory Statement of Rights, mandatory 24/7 registered nurse coverage, enforceable care minute targets, and a new regulatory enforcement framework with significant penalties for non-compliance.

Commencement Date & Transition

The Aged Care Act 2024 commenced on 1 November 2025 by proclamation (Proclamation F2025N00516). It was originally scheduled to commence on 1 July 2025 but was deferred by approximately 4 months to give providers and the sector additional time to prepare.

The following changes all took effect on 1 November 2025:

• New Aged Care Act 2024 (full commencement)
• Support at Home program (replacing Home Care Packages and Short-Term Restorative Care)
• Strengthened Aged Care Quality Standards (7 Standards)
• Higher Everyday Living Fee (HELF)
• New provider registration model (6 categories)
• Statement of Rights (embedded in legislation)
• New regulatory model and enforcement framework
• Redesigned Star Ratings

Existing providers were "deemed" into the new registration categories based on the services they were already delivering. This means they did not need to re-apply from scratch but must comply with the new obligations going forward.

Source: Department of Health — New Aged Care Act to start from 1 November

10 Key Provider Obligations Under the Act

Registered providers must meet a range of obligations under Part 4 of the Act. The key obligations are:

Source: Department of Health — Guide to Aged Care Law, Chapter 3

24/7 Registered Nurse Requirement (Section 175)

Under Section 175 of the Aged Care Act 2024, a registered provider must ensure that at least one registered nurse is on site, and on duty, at all times at an approved residential care home.

Key Details

• Who: A registered nurse (RN) — not an enrolled nurse (EN). ENs cannot substitute for RNs under this requirement.
• When: 24 hours a day, 7 days a week, including all public holidays
• Where: On site at the residential aged care home
• Reporting: Monthly reporting required within 7 days after the end of each calendar month (Aged Care Rules 2025, Rule 166.855)

Exemptions

Exemptions are available for rural and remote areas, granted for up to 12 months at a time. The System Governor must be satisfied that clinical care needs will be met during the exemption period. Exemptions are not automatic — providers must apply and demonstrate need.

How Agencies Help

Many facilities struggle to recruit permanent RNs willing to work night shifts, weekends, and public holidays. Specialist aged care staffing agencies like MedHireHub provide pre-vetted, AHPRA-registered RNs for block booking and emergency fill. See our 24/7 RN Staffing Solutions Sydney 2026 guide for detailed solutions.

Sources: Section 175 on AustLII, Department of Health — 24/7 RNs

215 Care Minutes Requirement (Section 176)

Under Section 176 of the Act and Aged Care Rules 2025, Rule 176-20, residential aged care homes must deliver a sector-wide average of 215 minutes of care per resident per day, including 44 minutes of direct registered nurse (RN) care.

Key Details

• Total care minutes: 215 per resident per day (sector-wide average)
• RN care minutes: 44 per resident per day
• EN substitution: Up to 10% of the RN target can be met by enrolled nurses (e.g., 4.4 EN minutes for a 44-minute RN target)
• Individual home targets: Vary based on resident classification (Classes 1–13 and Respite Classes 1–3)
• Class 7 (most common): 215 total minutes, 46 RN minutes

Implementation Timeline

Sources: Section 176 on AustLII, Department of Health — Care Minutes

Statement of Rights (Section 23)

For the first time, a Statement of Rights is embedded directly in legislation under Section 23 of the Aged Care Act 2024. This gives older people enforceable rights when accessing funded aged care services.

Key Rights Include

• Independence, autonomy, empowerment and freedom of choice
• Equitable access to services
• Quality and safe funded aged care services
• Respect for privacy and information
• Person-centred communication and the ability to raise issues without reprisal
• Advocates, significant persons and social connections

The Statement of Rights informs the strengthened Quality Standards and must be upheld by all providers. It is available in 29 languages and Easy Read format.

Sources: Section 23 on AustLII, ACQSC — Statement of Rights

7 Strengthened Quality Standards

The Aged Care Act 2024 introduced 7 Strengthened Quality Standards (streamlined from the previous 8), which commenced on 1 November 2025. These Standards are more measurable, detailed, and comprehensive than the previous version.

The 7 Standards

Key Statistics

• 33 outcomes with 154 supporting actions
• 13% of expectations are entirely new
• 63% clarify current expectations
• 24% align to current Quality Standards
• Review cycle: Every 5 years

Application by Registration Category

• Category 6 (Residential care): Must meet all 7 Standards
• Category 5 (Flexible aged care): Must meet Standards 1, 2, 3, 4, 5
• Category 4 (Personal care/care support): Must meet Standards 1, 2, 3, 4 (plus outcome 5.1 for care management)
• Categories 1–3: Specific Standard applications apply

For a deeper dive, see our Aged Care Quality Standards Compliance Guide.

Sources: ACQSC — Stronger Standards, Department of Health — Strengthening Quality Standards

New Provider Registration Model (6 Categories)

The Act introduces a new 6-category provider registration model (Sections 104, 107, 109), replacing the old single-approval system. Providers register for one or more categories based on the services they deliver.

The 6 Registration Categories

Registration Requirements

• Must have an Australian Business Number (ABN)
• Must be suitable to deliver funded aged care services
• Must have commitment, capability and capacity
• Must identify responsible persons
• Must specify legal and business structure
• Registration must be renewed (3-year cycle)

Existing providers were deemed into categories when the Act commenced on 1 November 2025, based on services already delivered.

Sources: Section 109 on AustLII, ACQSC — Becoming a Registered Provider

Direct Employment vs Agency (Outcome 2.9)

One of the most significant changes for staffing agencies is Outcome 2.9 of the Strengthened Quality Standards, which requires providers to "use direct employment to engage aged care workers whenever possible, and minimise the use of independent contractors and agencies providing contractors."

What This Means in Practice

• Direct employment is preferred — providers should prioritise hiring permanent and casual staff directly
• Agencies should be used when directly employed workers aren't available — not as a first choice
• Continuity of care — providers should aim to roster the same agency workers for consistency
• Competency checks — providers must complete competency checks for agency/contractor workers
• Registered provider remains accountable — even when using associated providers (subcontractors), the registered provider is responsible for service quality

Sources: Section 11 on AustLII, ACQSC — Workforce Planning

Support at Home Program

The Support at Home program commenced on 1 November 2025, replacing the Home Care Packages (HCP) Program and Short-Term Restorative Care (STRC) Programme.

Key Features

• More funding levels for complex needs
• Restorative Care Pathway — time-limited support to help older people regain independence
• End-of-Life Pathway — extra funding for the last 3 months of life
• Assistive Technology and Home Modifications scheme — separate from care funding
• Better access to assessment and reassessment

CHSP Transition

The Commonwealth Home Support Program (CHSP) will transition to Support at Home no earlier than 1 July 2027. CHSP has been extended from 1 July 2025 to 30 June 2027.

Source: Department of Health — Support at Home

Higher Everyday Living Fee (HELF)

The Higher Everyday Living Fee (HELF) (Section 284) commenced on 1 November 2025. It replaces the previous additional service fees and extra service fees.

What It Is

HELF is an optional fee for permanent and respite residents for services of a higher standard than the Residential Care Service List, or for services not on the list at all.

Key Rules

• Must not be charged before resident enters care
• Cannot be a condition of entry or used to secure a room
• Must have written agreement (standing) or verbal agreement (ad-hoc)
• Agreement must be separate from service and accommodation agreements
• Subject to indexation

Two Types of Agreements

1. Standing (written): For planned or ongoing higher-standard services
2. Ad-hoc (verbal): For impromptu single services

Sources: Section 284 on AustLII, Department of Health — HELF

Redesigned Star Ratings

The Star Ratings system has been redesigned to align with the new Act. The 4 sub-categories remain but with updated methodologies:

Compliance Rating Levels

• 1 star: Significant improvement needed (civil penalties, compensation orders, criminal prosecution, revocation/suspension of registration)
• 2 stars: Improvement needed (Notice to Remedy, Compliance Notices)
• 3 stars: Acceptable
• 4 stars: Good
• 5 stars: Excellent

Sources: Department of Health — Star Ratings Changes, My Aged Care — How Star Ratings Are Calculated

Compliance Penalties & Enforcement

The Aged Care Act 2024 introduces a stronger enforcement framework with significant penalties for non-compliance. The penalty unit value for 2025-26 is $330 per penalty unit (Crimes Act 1914, Section 4AA).

Civil Penalties (Section 179)

Other Enforcement Tools

• Infringement Notices (Section 448): Up to 12 penalty units for individuals, 5x for corporations; 28 days to pay
• Compensation Orders (Section 186): Court may order compensation for serious injury or illness resulting from breach of statutory duty; application within 6 years
• Revocation/suspension of registration: For the most serious contraventions

Sources: Section 179 on AustLII, Section 186 on AustLII

Aged Care Worker Requirements

Under Section 152 of the Act and Aged Care Rules 2025 (Part 6, Division 1), aged care workers must meet specific requirements:

Qualifications

• Workers must have "appropriate qualifications, skills or experience" to provide the funded aged care services (Rule 152.35)
• Minimum Certificate III in Individual Support (Ageing) is generally expected for personal care workers
• RNs must hold current AHPRA registration
• ENs must hold current AHPRA registration

Screening Requirements

• Worker screening (Rules 152-15 to 152-22): NDIS Worker Screening Check or state-based police check requirements
• Police certificates required (Rule 152-25)
• First Aid and CPR certification commonly required

Code of Conduct (Sections 173–174)

• Workers must comply with the Aged Care Code of Conduct
• Must not threaten or harm persons who provide feedback or make complaints
• Must not share identity of complainants (except with responsible person/provider)
• Must not give false or misleading information

Sources: Section 152 on AustLII, ACQSC — Workers and Their Responsibilities

First Nations Aged Care

The Act includes specific provisions for Aboriginal and Torres Strait Islander people under Section 66. Key reforms include:

• National Aboriginal and Torres Strait Islander Flexible Aged Care Program (NATSIFAC) included in the new Act
• Culturally safe care requirements embedded in the strengthened Quality Standards
• Aboriginal and Torres Strait Islander assessment organisations being rolled out (3 organisations currently)
• Elder Care Support (ECS) program workforce increased (at least 100 additional connector positions)
• Aboriginal and Torres Strait Islander Aged Care Framework released (10-year roadmap)
• Interim First Nations Aged Care Commissioner appointed

The reforms align with the principles of Closing the Gap and the United Nations Declaration on the Rights of Indigenous People.

Sources: Section 66 on AustLII, Department of Health — First Nations Aged Care

Implementation Timeline

Source: Department of Health — Aged Care Reforms Roadmap

Steps to Consider for Compliance

The following are general steps that providers and agencies may wish to consider. This is general information only, not legal advice — we recommend consulting a qualified legal professional or the Aged Care Quality and Safety Commission for your specific compliance obligations.

For Aged Care Providers

1. Verify your registration category — consider confirming you're registered for all service categories you deliver
2. Audit your 24/7 RN coverage — check that at least one RN is on site at all times; identify gaps and arrange coverage. See our 24/7 RN Staffing Solutions guide.
3. Track care minutes — consider implementing systems to monitor and report care minutes against your home's target; address shortfalls proactively
4. Update your continuous improvement plan — required under Section 147; consider using the Plan-Do-Check-Act cycle
5. Align with Strengthened Quality Standards — consider conducting a gap analysis against the 7 Standards and 33 outcomes
6. Review agency arrangements — consider how you can justify agency use per Outcome 2.9; prioritise block-booking for continuity
7. Verify worker qualifications and screening — check that all workers (including agency) have current AHPRA registration, police checks, and required certifications
8. Update your complaint handling processes — consider aligning with the Statement of Rights; ensure residents can raise issues without reprisal
9. Monitor your Star Ratings — track your Compliance and Staffing ratings; address any areas below 3 stars
10. Prepare for care funding linkage — from 1 April 2026, metropolitan homes will have funding linked to care minutes delivery

For Staffing Agencies

1. Provide block-booked staff for continuity — agencies that offer the same workers consistently will be preferred under Outcome 2.9
2. Pre-complete competency checks — consider providing documentation to providers so they can meet their competency check obligations
3. Verify all worker credentials — check AHPRA registration, police checks, First Aid, Certificate III/IV qualifications are current
4. Understand the new Standards — consider aligning your training and induction with the 7 Strengthened Quality Standards
5. Support the direct employment preference — position your agency as a supplement to direct employment, not a replacement

MedHireHub provides fully compliant aged care staffing solutions across Sydney and NSW, including 24/7 RN coverage, emergency staffing, and bulk workforce solutions. All staff are pre-vetted with current AHPRA registration, police checks, and required qualifications. Contact us at 0449 951 875 to discuss your compliance needs.

Frequently Asked Questions

Disclaimer: This article is for informational purposes only and does not constitute legal, financial, or professional advice. The Aged Care Act 2024 is now law (commenced 1 November 2025) and all obligations described are currently in effect unless otherwise noted. Penalty figures are calculated based on the 2025-26 penalty unit value of $330 (Crimes Act 1914, Section 4AA) and are subject to indexation. MedHireHub provides staffing and recruitment services only and does not guarantee ACQSC compliance, audit outcomes, care minute targets, or any specific regulatory result for any client. Compliance responsibility remains with the employing facility or provider. For current and authoritative information, consult the Aged Care Act 2024 on the Federal Register of Legislation, the Department of Health, the Aged Care Quality and Safety Commission, or a qualified legal professional.