The New Aged Care Act: What it means for families

At Paris Financial, we understand that aged care decisions are among the most sensitive and significant financial conversations families will have. From 1 November 2025, the Australian Government is introducing new Aged Care Act 2024, designed to overhaul the existing system and place older people’s rights at the heart of aged care.

This is one of the biggest shifts in aged care legislation in decades, with wide-reaching implications for individuals, families, and service providers. The changes aim to simplify the system, strengthen protections, and raise standards of care across the country.

A Shift to a Rights-Based Model

The new Aged Care Act introduces a rights-based model, enshrining the dignity, independence, and wellbeing of older Australians in law. For the first time, aged care recipients will have formal legal rights guiding their treatment and experience.

These include the right to:

• Be treated with dignity and respect.
• Make decisions about their own care.
• Receive culturally safe and appropriate services.
• Access clear and simple information.
• Be protected from neglect and harm.

Providers will be required to uphold these rights, with stronger enforcement measures in place to ensure compliance.

Key Reforms Under the new Aged Care Act

The legislation introduces significant changes across multiple areas:

1. Improved access and simpler navigation

Older Australians and their families will find it easier to enter and move through the aged care system, with less red tape and more support. The process of applying for services will be streamlined.

2. Clearer provider responsibilities

Care providers will have clearly defined obligations. These include care quality benchmarks, worker training requirements, and systems for listening and responding to complaints.

3. Transparency and choice

Consumers will receive better information to help them compare providers, understand fees, and make confident decisions about their care options.

4. Stronger oversight

The new Act introduces robust regulatory and complaints-handling frameworks, with increased powers for aged care authorities to monitor and enforce standards.

5. A Supported workforce

To support higher standards, the Act will also promote a more stable, better trained and better paid aged care workforce.

Financial Implications for Families

For many Australians, the financial aspects of aged care are just as important as the care decisions themselves. These reforms could affect:

• accommodation costs and bonds
• eligibility for government subsidies
• access to transparent pricing structures
• estate planning and intergenerational wealth transfers

At Paris Financial, we help clients plan aged care transitions well in advance, ensuring they retain financial flexibility and avoid unexpected costs. The new Act adds further weight to the need for professional advice.

How to prepare for the changes

With the new legislation taking effect on 1 July 2025, here’s how to stay ahead:

• Review aged care arrangements for yourself or family members.
• Speak to current care providers about how they’re preparing.
• Seek financial advice to structure assets and income effectively.
• Consider updating your estate planning documents.

How Paris Financial can support you

Our team is here to help you:

• understand your aged care funding options
• minimise tax while accessing care
• plan for future costs and estate transfers
• navigate means testing and Centrelink requirements.

We believe aged care planning should never be rushed. Whether you’re preparing for yourself, a parent, or another loved one, we’ll work with you to design a plan that protects your finances and ensures peace of mind.

Stay informed

To read more about the new Aged Care Act and the rights-based care model, visit the My Aged Care website.

If you’d like to speak to someone about how these changes might affect your situation or a family member’s care, book a free consult with the Paris Financial team here: Contact Us.

Source: My Aged Care