Strengthening Aged Care For Every Older Australian

Department of Health

The Albanese Labor Government is listening to the experiences of older Australians and taking the necessary action to refine the aged care system and build on its once-in-a-generation reforms.

Yesterday, the Aged Care Legislation Amendment (Aboriginal and Torres Strait Islander Aged Care Commissioner and Other Measures) Bill 2026 passed the Parliament with bipartisan support, introducing critical changes to make the system work more effectively and produce better outcomes for older Australians.

At the heart of the Bill is the establishment of Australia’s first permanent Aboriginal and Torres Strait Islander Aged Care Commissioner, creating a powerful, independent voice for Aboriginal and Torres Strait Islander Elders and their communities.

Located within the Aged Care Quality and Safety Commission, this new office will allow the Commissioner to directly connect with the regulatory systems that oversee the sector, elevate the feedback and priorities of Aboriginal and Tores Strait Islander Elders and inform policy development and decision-making.

The new permanent Commissioner will build on the work of the Interim First Nations Aged Care Commissioner, with the new office commencing from 1 July 2027 following a public, merit-based selection process, with consultation with Aboriginal and Torres Strait Islander organisations and advocates.

To support the operation of the Aged Care Act 2024, changes will also be made to the Aged Care Rules 2025 to make the system simpler for older people to navigate and easier for providers to administer, while strengthening safeguards and enhancing consumer protections.

This includes the establishment of a new escalation pathway which provides an additional review process for aged care assessment decisions.

Assessments have always been undertaken by qualified human assessors who use the tool alongside their clinical expertise and professional judgement, and this new pathway will further strengthen human oversight.

While an older person can already seek a review of an assessment decision through existing review pathways, the new escalation pathway will give older Australians an additional safety net so they have confidence their assessment outcome will reflect their care needs.

Additional changes include:

  • clearer obligations on providers to refund contributions and fees that have been overcharged
  • greater flexibility for older people to choose how they pay for residential aged care while they await outcomes of means testing
  • strengthened information requirements, including clearer service agreements
  • more streamlined obligations for local councils delivering aged care services, bringing them into line with state and territory governments.

The new Aged Care Act was the most significant reform to aged care in almost 30 years and change of this magnitude was always going to require diligent monitoring and ongoing refinement.

The Government is committed to keep listening to the sector to continue building a more effective and responsive aged care system that delivers great care and fair outcomes for all older Australians.

Quotes attributable to Minister for Aged Care and Seniors Sam Rae:

“The Albanese Labor Government is listening to older Australians and making sure that technical, but still important, issues are being corrected so everyone can access the care and support they need with confidence.

“Every older Australian deserves care that sees them, knows them and treats them with respect, and the establishment of Australia’s first permanent Aboriginal and Torres Strait Islander Aged Care Commissioner will give an independent voice to First Nations peoples and deliver better outcomes for them and their communities.

“We’re ensuring aged care assessment decisions are consistent, equitable and accurate, and the new bipartisan escalation pathway will support those older Australians whose unique circumstances might not fit neatly into a tool.”

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