Aged Care Reform in Australia

As the number of adults reaching retirement age is growing world-wide, the need and demand for quality aged care services is also on the rise. The 2025 reform in Victoria promises a more inclusive and rights-based aged care system—but providers such as CO.AS.IT. warn that rushed implementation could place its success at risk.

 Although aged care systems vary from country to country, there are four countries whose systems outrank the rest for quality and levels of satisfaction – Norway, Switzerland, Germany and Canada. The upcoming overhaul of Australia’s aged care system is hoping to bring Australia on par with the top four. 

However, with major structural changes, CO.AS.IT. and others urge extended implementation time, tailored support for culturally and linguistically diverse (CALD) communities, and safeguards to ensure quality, culturally appropriate services, and sustainability for non-profit community providers. 

On 1 July 2025, Australia will introduce one of the most significant overhauls of its aged care system in decades, aimed at addressing long-standing concerns around quality, access, and accountability.  Following the findings of the Royal Commission into Aged Care Quality and Safety, the new Aged Care Act adopts a rights-based, person-centred approach intended to transform how care is delivered and experienced across the country.

One of the most notable features of the reform is the formal adoption of a Statement of Rights, which guarantees all older Australians the right to dignity, autonomy, safety, and culturally respectful care. Accompanying this is a strengthened set of Quality Standards and a new regulatory framework designed to hold providers to higher levels of transparency and performance.

The Support at Home Program will consolidate existing schemes into a unified system. Providers will be required to register under a new tiered structure based on service risk and type, and to meet revised financial, clinical, and compliance obligations. Workers in the sector will also be subject to new screening protocols, with all services delivered by appropriately qualified and trained staff.

While the reform has been widely welcomed for its ambition, it has also raised significant concerns, particularly among providers serving CALD communities. As a key non-profit organisation supporting Italian-Australians in Victoria, CO.AS.IT. Melbourne has expressed caution about the proposed timeline and the risks associated with a rushed rollout. Implementing the new system without adequate preparation could disrupt service provision and reduce access to essential, culturally appropriate care. Many CALD seniors rely on bilingual support and culturally responsive services, needs that cannot be met through a one-size-fits-all approach.

CO.AS.IT. is therefore urging the government to extend the transition period by at least 12 months. This would allow providers the necessary time to retrain staff, upgrade digital systems, adapt governance structures, and align with new financial and regulatory expectations. The organisation is also calling for tailored funding models that address the specific needs of CALD communities, as well as for genuine community engagement throughout policy development and implementation.

One key aspect of the reform is the shift towards giving consumers greater responsibility in managing their own services. While this has the potential to empower individuals and reduce overall costs for clients, it also introduces a higher level of responsibility, requiring older Australians to navigate more complex choices and coordinate services independently. This change, while promising greater flexibility, may lead to confusion or gaps in support, particularly for vulnerable clients. Additionally, with providers permitted to retain only 10% of a client’s budget for administration and compliance, there is concern that their ability to deliver comprehensive, wrap-around support may be constrained.

For this reason, CO.AS.IT. stresses the importance of choosing reliable, community-focused providers that reinvest in quality care rather than prioritising profit margins. At the same time, we urge the government to implement appropriate safeguards to ensure that the new model does not disproportionately benefit large corporate providers at the expense of long-standing non-profit organisations, which have historically formed the backbone of Australia’s community-based aged care sector.

CO.AS.IT.’s concerns are echoed by other major sector bodies, including Ageing Australia and the Retirement Living Council. Both have called on the federal government to delay the rollout of the new Aged Care Act, citing significant uncertainty and unease across the sector regarding readiness for the impending changes.

According to Tom Symondson, Chief Executive Officer of Ageing Australia, without more time to implement such sweeping reforms, the very real risk is that we’re going to get to 1 July without everything in place. This will have very real consequences for older people, and there is concern that there could be disruption to services, and confusion and uncertainty for older Australians and providers alike.

Despite these concerns, CO.AS.IT. remains firmly committed to supporting the core goals of the reform and is actively preparing to assist its community through the transition. We are developing multilingual information campaigns and personalised consultations to help clients understand the changes and make informed decisions.

Above all, CO.AS.IT. continues to emphasise that aged care must remain a service for people—not merely a business. The success of this reform will ultimately depend on whether it places community, culture, and compassion at its heart.

As July 1^st approaches, Australia stands at a crossroads. The aged care reform holds the promise of a fairer, more responsive system. But for that promise to be fulfilled, it must be inclusive not only in principle, but in practice, especially for those communities whose needs have too often been overlooked.