Lexi Webster
The Aged Care Act 1997 was an Act of the Australian parliament that regulated aged care services, particularly those funded by the government. The Act outlined the obligations and responsibilities of aged care providers to ensure quality care and respect for those accessing these services. It also covered rules around funding, regulation, approval of providers, and the rights of people receiving care. The Act was replaced by the Aged Care Act 2024, which came into effect on 1 July 2025, aiming to strengthen the aged care system and put the rights of older people at the centre.
| Characteristics | Values |
|---|---|
| Name of the Act | Aged Care Act 1997 |
| Jurisdiction | Australia |
| Legislative Purpose | To provide for a system of subsidised, regulated residential aged care and home care services for older Australians, as well as establishing an Aged Care Standards and Accreditation Agency to oversee quality of care. |
| Key Principles | Consumer choice, flexibility, dignity, respect, and quality of life for elderly Australians. |
| Eligibility | Australian citizens and permanent residents aged 65 and over, or 50 and over for Aboriginal and Torres Strait Islander people, who need help with everyday tasks or health care. |
| Types of Care | Residential care, home care packages (4 levels), respite care, transition care, and support for carers. |
| Funding and Costs | The Australian Government subsidises a range of aged care services. Consumers may be asked to contribute to the cost of their care through fees and charges. |
| Quality and Safety | The Act establishes an accreditation framework to ensure quality care and consumer rights. It also outlines the responsibilities of service providers and sets out complaints and appeals processes. |
| Consumer Rights | Consumers have the right to be treated with respect, have their privacy maintained, be given information about their care, and be involved in decisions about their care. |
| Provider Responsibilities | Aged care providers must meet standards, ensure quality care, and comply with funding and reporting requirements. They must also respect consumer rights and have a range of policies and procedures in place. |
| Complaints and Appeals | The Act outlines a process for consumers and their representatives to raise concerns or complaints, with an independent review available if needed. |
| Latest Amendments | The Act has been amended numerous times, with significant changes in 2012, 2016, and 2018 to improve quality, funding, and consumer-focused care. |
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What You'll Learn
Funding, regulation, and approval of providers
The Aged Care Act 1997 was an Act of the Australian parliament that regulated aged care services, particularly those funded by the Commonwealth government. It outlined the obligations and responsibilities that aged care providers must follow to receive subsidies from the Australian government.
The Act was replaced by the Aged Care Act 2024, which came into effect on 1 July 2025. The new Act will put the rights of older people needing care at the centre of the system and strengthen the aged care sector in Australia. It will also build on priority aged care reforms that have already been delivered.
The new Act includes a Statement of Rights, which outlines the rights that older people in the aged care system should expect when seeking or accessing government-funded aged care services. This ensures that older people and their needs are at the centre of the new system. It also makes sure that older people can access streamlined and clarified obligations and registration conditions. For example, a provider must demonstrate that they understand the Statement of Rights and have practices in place to ensure the delivery of funded aged care services is compatible with the Act.
The new Act will also protect whistleblowers, ensuring that older people, their loved ones, and aged care workers can report information without fear of punishment or unfair treatment.
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Quality of care and rights of people receiving care
The Aged Care Act 1997 was an Act of the Australian parliament that regulated aged care services, particularly those funded by the Commonwealth government. The Act outlined the obligations and responsibilities that aged care providers must follow to receive subsidies from the Australian government. It also set out rules for funding, regulation, approval of providers, and the quality of care and rights of people receiving care.
The Act was replaced by the Aged Care Act 2024, which came into effect on 1 July 2025. The new Act will put the rights of older people at the centre of the aged care system and ensure that people who access aged care services are treated with respect and have the quality of life they deserve. It includes a Statement of Rights, which outlines the rights that older people should expect when seeking or accessing government-funded aged care services. This includes the right to be free from all forms of violence, discrimination, exploitation, neglect, and abuse, as well as sexual misconduct. The new Act will also protect whistleblowers, ensuring that older people, their loved ones, and aged care workers can report information without fear of punishment or unfair treatment.
The new Act will affect everyone connected to the aged care system, including government agencies, service providers, and older people and their representatives. It will also impact the broader sector, including private investors and superannuation and property real estate investment trusts. The new Act aims to strengthen Australia's aged care system and address issues facing older people, aged care providers, workers, and the sector as a whole.
To prepare for the new Act, older people and their representatives may want to review their existing relationships in My Aged Care. The new Act will introduce a registered supporter role, and regular or authorised representatives can opt out of this role before 31 October. On 1 November, active representative relationships that have not opted out will transition to supporter relationships.
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Obligations and responsibilities of care providers
The Aged Care Act 1997 outlines the obligations and responsibilities that aged care providers must follow to receive subsidies from the Australian Government. The Act covers government-funded aged care and sets out rules for funding, regulation, approval of providers, quality of care, and the rights of people receiving care.
Care providers must promptly address concerns about matters that may impact the quality and safety of care, supports, and services. They must also ensure that the care they provide is free from all forms of violence, discrimination, exploitation, neglect, and abuse, including sexual misconduct. This means taking all reasonable steps to prevent and respond to such incidents. Non-compliance can lead to fines of up to $55,500 for individuals and $277,500 for bodies corporate.
The new Aged Care Act, which came into effect on 1 July 2025, strengthens Australia's aged care system by putting the rights of older people at the centre. It underpins responses to 58 Royal Commission recommendations and builds on priority aged care reforms. The Act includes a Statement of Rights, outlining the rights that older people should expect when seeking or accessing government-funded aged care services.
To ensure older people's needs are met, the Act requires providers to demonstrate their understanding of the Statement of Rights and to have practices in place to ensure the delivery of funded aged care services is compatible with those rights. The Act also protects whistleblowers, allowing older people, their loved ones, and aged care workers to report issues without fear of retribution.
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Whistleblower protection for people reporting issues
The Aged Care Act 1997 is the main law that covers government-funded aged care in Australia. It sets out rules for funding, regulation, approval of providers, quality of care, and the rights of people receiving care. The Act also includes mandatory reporting laws, which ensure that incidents are reported in accordance with the guidelines set out in the Act to guarantee the safety of residents in aged care facilities.
The new Aged Care Act, which will come into effect on 1 July 2025, aims to enhance whistleblower protections. These protections are designed to address the concerns raised by the Royal Commission about the fear of reprisal deterring complaints in residential aged care facilities. The new Act will broaden the scope of reportable incidents, encompassing services provided in home and community-based aged care settings.
The new Act allows a broad range of individuals, such as aged care workers, responsible persons of registered providers, and recipients of aged care services, along with their carers and advocates, to make disclosures. To be protected, whistleblowers must provide their name, have reasonable grounds to suspect a violation of aged care legislation, and make the disclosure in good faith. The Act encourages whistleblowers to disclose their identity but still allows for anonymous complaints.
The new Aged Care Act will also provide legal safeguards for whistleblowers, including protection from civil or criminal liability, voided contractual obligations, and the assurance of confidentiality. It is important to note that the protection for whistleblowers is restricted to disclosing information about reportable incidents, and other types of disclosures may not be protected.
The new Act imposes a positive obligation on providers to prevent the victimisation of their workers and protect their identities if they make a disclosure. Providers should have a whistleblower policy in place and ensure strong documentation around their complaints management procedures. These changes are designed to bring aged care whistleblower protections in line with those found in other legislation, such as the Corporations Act 2001 and the National Disability Insurance Scheme (NDIS) Act.
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Rules on subsidies, standards, and non-compliance
The Aged Care Act 1997 was an Act of the Australian parliament that regulated aged care services, particularly those funded by the Commonwealth government. It outlined the obligations and responsibilities that aged care providers must follow to receive subsidies from the Australian government. The Act was replaced by the Aged Care Act 2024, which came into effect on 1 July 2025.
The new Act will put older people who need aged care at the centre of the system and will affect everyone connected to it. It includes a Statement of Rights, which outlines the rights that older people should expect when seeking or accessing government-funded aged care services. This ensures that older people can access streamlined and clarified obligations and registration conditions. For example, a provider must demonstrate their understanding of the Statement of Rights and have practices in place to ensure the delivery of funded aged care services is compatible with the Act.
The new Act will also strengthen the aged care system by ensuring that people who access aged care services funded by the Australian government are treated with respect and have the quality of life they deserve. It will also build on priority aged care reforms that have already been delivered, addressing urgent matters of quality and safety, enabling transparency in pricing, and providing an enduring and sustainable funding model.
The Aged Care Act 1997 included rules on non-compliance, with fines of up to $55,500 for individuals and $277,500 for bodies corporate. The new Act will protect whistleblowers – those who call out issues – to ensure that older people, their loved ones, and aged care workers can report information without fear of punishment or unfair treatment.
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Frequently asked questions
The Aged Care Act 1997 is the main law that covers government-funded aged care in Australia. It outlines the rules and obligations that aged care providers must follow to receive subsidies and funding from the Australian Government.
The Act covers various aspects of aged care, including funding, regulation, approval of providers, quality of care, rights of people receiving care, and non-compliance. It also includes provisions for residential care subsidies, accommodation payments, and the responsibilities of approved providers.
The Act applies to aged care providers, workers, and the broader sector. It also outlines the rights of older people accessing aged care services and the responsibilities of government agencies in supporting, delivering, regulating, and overseeing the aged care system.
Yes, the Aged Care Act 1997 has been replaced by the Aged Care Act 2024, which came into effect on 1 July 2025. The new Act aims to put the rights of older people at the centre of the aged care system and addresses issues related to quality, safety, and transparency in pricing. It also includes a Statement of Rights that outlines the rights of older people in the aged care system.
