Aged Care Regulatory Updates

The ACQSC has invited the first group of providers to renew their registration under the new Aged Care Act 2024. Registration must be renewed every three years and involves re-assessment of suitability, capacity and capability. Providers in registration categories 4–6 (including residential care/Category 6) will undergo an audit against the Strengthened Quality Standards as part of renewal.

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The ACQSC has commenced auditing providers using a new process aligned with the Strengthened Quality Standards and the Aged Care Act 2024 registration model. Audits apply when providers register, renew, or vary registration in categories 4, 5, or 6. The process is described as more efficient, consistent and transparent, including structured opportunities for providers to respond to findings.

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From 1 October 2025, aged care homes must meet both legislated total care minutes AND registered nurse care minutes targets to achieve 3 stars or more for their Staffing rating. The updated calculation will first appear publicly on the My Aged Care Find a Provider tool from the second quarterly Star Ratings update in 2026 (mid-2026). Providers below target on either measure will be capped at 2 stars for Staffing.

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From 1 April 2026, AN-ACC funding for non-specialised metropolitan (MM1) residential care homes is restructured: the base care tariff drops from 0.5 to 0.387 NWAU, with the difference replaced by a care minutes supplement paid only if homes meet both total and RN care minute targets. Homes that fail to meet targets face a maximum funding reduction of ~$31.64 per resident per day. Providers must ensure QFR reporting is accurate as discrepancies between QFR and audited Care Minutes Performance Statements can trigger supplement recalculation.

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Under the Aged Care Act 2024 (from 1 November 2025), SIRS has been expanded from residential care to include Support at Home providers. Priority 1 incidents must be reported within 24 hours; Priority 2 within 30 days; final reports within 60 days. The 8 reportable incident types continue to apply. Residential providers should review updated guidelines.

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A new Care Minutes Performance Statement has been added to the 2025-26 ACFR. It requires reporting of direct care minutes delivered, associated labour hours and costs, RN coverage and occupancy — and must be externally audited. The ACFR is due by 31 October 2026.

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The ACQSC has commenced auditing providers against the Strengthened Quality Standards using a new process that is more efficient, consistent and transparent. Audits are conducted for registration, renewal or variation in categories 4, 5 or 6. Providers have opportunities to respond to findings before final decisions.

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From 1 November 2025, the Compliance rating incorporates graded assessment against the 7 Strengthened Quality Standards. Transition to the redesigned rating will take up to 3 years as homes are audited. A Compliance rating of 1 or 2 stars will cap the Overall Star Rating. Homes may also be eligible for an 'exceeding' grade.

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From 1 April 2026, care funding for non-specialised homes in metropolitan areas (MM1) is linked to delivery of care minutes via a new care minutes supplement. The Base Care Tariff will be reduced by up to $31.92 per resident per day, with that amount redirected into the supplement paid based on actual care minutes performance.

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The ACQSC will commence a targeted review in April 2026 of compliance with the new Financial and Prudential Investment Standard. All non-government providers registered in Category 6 must comply, including maintaining an Investment Management Strategy to protect refundable deposits. Selected providers will be contacted directly.

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Under the Aged Care Act 2024 (commenced 1 Nov 2025), existing residential care agreements automatically became 'service agreements' and existing care plans became 'care and service plans'. Both must be reviewed and varied or replaced within 12 months (by 1 November 2026). Providers must also provide the Statement of Rights to all existing residents. The deadline is approaching — action needed now.

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From 1 April 2026, non-specialised residential aged care homes in metropolitan areas (MM1) have their Base Care Tariff reduced, with the difference redirected into a new care minutes supplement. The supplement is zero if a home delivers less than 85% of both total care minutes and RN minutes targets. Providers should use the online estimator and ensure QFR reporting accuracy, as supplement entitlements are calculated from QFR data two quarters earlier.

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The 2025-26 ACFR will be the first completed under the Registered Provider structure (opening July 2026, due 31 October 2026). Key changes include new Care Time Performance Statement, updated terminology and declaration files to align with the new Aged Care Act, a new Annual Prudential Compliance Statement, and new Hotelling/HELF line items. Providers must report under both the Aged Care Act 1997 (Jul-Oct) and Aged Care Act 2024 (Nov-Jun) in one report.

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All residential aged care providers must submit audited Care Minutes Performance Statements as part of the Aged Care Financial Report for 2025-26, due 31 October 2026. If care minutes reported in the Performance Statement differ from the Quarterly Financial Report, the department can recalculate the care minutes supplement. This is the first year this externally audited statement is required.

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In April 2026, the ACQSC is commencing a targeted review on the new Financial and Prudential Investment Standard. All non-government providers registered in Category 6 must comply with the Investment Standard, including setting up and maintaining an Investment Management Strategy. Selected providers will need to demonstrate how well they understand and comply with their financial and prudential obligations under the new Aged Care Act.

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From 1 April 2026, the government has linked care funding to care minutes delivery for non-specialised homes in metropolitan (MM1) areas. BCT funding is reduced by 0.113 NWAU ($31.92/bed day) and redirected into a new care minutes supplement paid on a sliding scale based on actual care minutes performance. Providers delivering below 85% of both total and RN targets receive zero supplement. This is a direct financial consequence for non-compliance with care minutes targets.

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