Up and running or left behind?

May 29, 2025

By Bruce Bailey

Aged Care Act

Unless you’ve been living under a rock, you are acutely aware that July 1, 2025, marks the start date of the new Aged Care Act.

While the transition will continue well beyond July 1, 2025, there are some critical elements that residential providers should have addressed by June 30 2025.

We’ve asked our consultants for their thoughts on key areas and actions, and we've compiled these into the following checklists to help you get up and running, rather than be left behind when the clock strikes midnight on June 30 2025!


Clinical/Compliance

Key areasActions

The role of supporters is facilitative. Unlike legal representatives, supporters do not have the authority to make decisions. 

Allowed actions include:

  1. Requesting, accessing, or receiving information or documents on the individual's behalf;
  2. Communicating the individual’s will, preferences, and decisions;
  3. Undertaking other actions on behalf of the individual, excluding making decisions.
  • Ensure you have documented the supporters for each consumer and understand their roles.
  • Update policies to capture the role of supporters, distinguishing these stakeholders from those appointed as decision makers (Attorney and Guardian).
  • Educate staff to raise awareness. 
Use of restrictive practices only as a last resort
  • Ensure Behaviour Support Plans are comprehensive and individualised for each consumer.
  • Be able to demonstrate the use of any restrictive practice is a last resort, including documentation that reflects all other non-pharmacological strategies have been exhausted.
Suitability of responsible persons
  • Update suitability screening of key personnel (now responsible persons) to include the person responsible for the overall management of the nursing service of each home. 

Operational 

Key areas Actions
Resident contracts                      
 
  • Revise resident agreements and address segregation of HELF, which must now be documented in a separate agreement, and the introduction of the 2% RAD retention.
     
  • Ensure the new resident agreement incorporates all terminology updates required, such as the new names and acronyms for various fees.
  • Incorporate as annexures documents required to be provided, such as the Residential Care Services List, the HELF Fact Sheet and the Statement of Rights.  
Adapt to the removal of Extra Service status
  • While ESS-approved benchmark services must continue to be provided for existing residents after July 1, no new residents can be admitted under ESS. 
Adapt to the replacement of Additional Services with Higher Everyday Living Fee (HELF)

See our:

Reconsider room pricing in light of the higher accommodation threshold $750,000
  • Ideally, have implemented an accommodation pricing strategy and ongoing review process. We recommend one that considers affordability, facility attractiveness and financial return to the provider.
Understand grandfathering provisions for Extra Service and Additional Service, and RAD
  • The changes to consumer charges have the potential to create confusion with staff, residents and their representatives.
  • If you are not ready to implement HELF, be aware that this may create possible points of conflict with grandfathered residents on ESS and AS programs
Indicative Registration Renewal Plan
  • Dependent on the date of expiry, develop a Renewal Assessment Plan. 
Marketing Material
  • Ensure your printed marketing material is updated to reflect the new fees, charges structure and terminology of the new Aged Care Act, including any new pricing.
Website and MyAgedCare disclosures
  • Ensure your website and MyAgedCare reflect new pricing and disclosure requirements around services.

Governance

Key areasActions
Understand and adapt to the registered provider framework 
  • The new ACT prioritises the provider rather than the facility. This has numerous implications.
  • Check the provider register to ensure you have the right registrations (6 in all). 
RAD and other Liquidity requirements
  • Update Liquidity Management Strategy as appropriate to reflect mandatory levels and provider-specific situations.
  • Forecast cash flows to identify risk of future noncompliance.
Related party loans 
Review of Statement of Financial position
  • With the elimination of allocated places, ensure your statement accurately reflects your assets.
Financial impact of changes in ESS. AS/HELF and RAD retention
  • The impact of the 2% retention on how people pay for accommodation is unknown. Scenario analysis of this potential impact, together with the impact of AS, ESS, HELF and the 2% retention, will ensure there are no shocks as the changes play out.
  • Ensure billing systems are tested for the new billing requirements and service range.
Regulator supervision level
  • Understand the implications of your current classification: surveillance, targeted, active, heightened.
Inform residents of the changes as relevant to them 
  • Respite residents who were admitted prior to the availability of the resident agreement, effective July 1, may need to be provided with information around the terms and agreements both prior to and post July 1, in particular any fee differences such as AS/ ESS/ HELF and RADs.
New Aged Care Rules (draft)
  • The Department and Quality Commission expect providers to comply with the draft Rules until they are reviewed and finalised by the new minister.
Staff education and resources
  • Create an education plan that supports staff knowledge of the changes as they relate to their roles, and the transition plans you have in place.

Join our webinar

We’re hosting a webinar with Inside Ageing on June 12: 'HELF: Prepare to operationalise the new legislation’

 

With July 1 just around the corner, is your organisation ready for the shift to the Higher Everyday Living Fee (HELF) and the changes in compliance management that come with it? We know that many organisations will need to review and adjust their approach to admissions and enhance service delivery processes.

Join us for a final preparation webinar designed to ensure you’re fully equipped for a smooth transition. 
We’ll cover the essential steps you should have completed by now, highlight any last-minute checks, and offer guidance on executing your HELF transition effectively.

This session will walk you through key actions to take, potential pitfalls to avoid, and how to ensure compliance as the new Aged Care Act takes effect. Don’t miss this critical opportunity to fine-tune your strategy and guarantee a successful transition on July 1, 2025.

Topics we’ll cover:
•    The Rules, final versions and implications
•    Checklist
•    Implementation pitfalls
•    Ongoing responsibilities for AS and ESS residents

To learn more about the webinar and register, click here.


To find out how we can assist your organisation, contact Bruce.

Contact Bruce
Bruce Bailey