Preparing for the Aged Care Act 2025: What Providers Need to Know

The Aged Care Act 2025 represents the most significant reform to aged care regulation in Australia's history. Born from the Royal Commission into Aged Care Quality and Safety, it fundamentally shifts how aged care is delivered, funded, and regulated.

For providers, this isn't just about compliance—it's about rethinking systems, processes, and culture to meet new expectations. Here's what you need to know.

What's Changing?

The new Act introduces several fundamental shifts:

Rights-Based Framework

The Act places the rights of older Australians at its centre. This isn't just philosophical—it creates enforceable rights that providers must respect and uphold. Your systems need to demonstrate how you're protecting and promoting these rights.

Statement of Rights

A new Statement of Rights establishes what older Australians can expect from aged care services:

• The right to safe, quality care
• The right to be treated with dignity and respect
• The right to have control over their own lives
• The right to access information
• The right to complain without fear of retribution

Strengthened Quality Standards

New quality standards replace the current framework, with more specific requirements and stronger enforcement mechanisms. Providers need to demonstrate ongoing compliance, not just point-in-time assessment.

New Registration Requirements

All providers must register under the new framework. This includes demonstrating capability, suitability, and having appropriate governance structures.

System Implications

The new Act has significant implications for your technology systems:

1. Enhanced Record Keeping

You'll need to maintain comprehensive records that demonstrate:

• How care decisions were made
• How consumer preferences were incorporated
• Evidence of informed consent
• Complaints and how they were handled
• Incidents and responses

Your CRM and care management systems need to capture this information in a structured, auditable way.

2. Quality Indicator Reporting

Mandatory quality indicators will require systematic data collection and reporting. If you're currently capturing this data manually or inconsistently, you'll need better systems.

3. Consumer-Facing Transparency

The Act requires greater transparency with consumers and families. This includes:

• Clear information about services and fees
• Access to their own records
• Regular communication about care

Consider whether you need consumer portals or improved communication systems.

4. Governance and Accountability

Boards and executives have explicit accountability. Your systems need to provide governance visibility—dashboards, reports, and alerts that keep leadership informed.

Preparing Your Organisation

Here's a practical framework for preparation:

Step 1: Assess Current State

• Map current systems and data flows
• Identify gaps against new requirements
• Review record-keeping practices
• Evaluate reporting capabilities
• Assess staff digital literacy

Step 2: Plan System Changes

Based on your assessment:

• Prioritise gaps by risk and effort
• Determine whether existing systems can be enhanced or need replacement
• Plan integration between clinical, CRM, and financial systems
• Budget for technology investment

Step 3: Implement Changes

• Start with highest-risk gaps
• Allow time for testing and training
• Plan for parallel running during transition
• Document processes for auditing

Step 4: Monitor and Improve

• Establish ongoing compliance monitoring
• Regular system reviews
• Continuous improvement processes

The Role of CRM in Compliance

A well-configured CRM system can support compliance in several ways:

Enquiry to Admission Tracking

Track every interaction from first contact through assessment to admission. This demonstrates how consumer choices were respected and how decisions were made.

Family Communication Records

Log all communications with families. This protects you in disputes and demonstrates ongoing engagement.

Complaints Management

Systematic capture and tracking of complaints with clear escalation and resolution processes.

Consent Management

Record and track consents—when they were given, what they covered, and when they need renewal.

Reporting and Dashboards

Real-time visibility into key metrics for operational and governance purposes.

Common Pitfalls to Avoid

• Waiting too long to start: System changes take time. Don't leave preparation until the last minute.
• Focusing only on technology: Systems support processes and people. All three need to change together.
• Underestimating training needs: New systems and processes require significant training investment.
• Treating it as a one-time project: Compliance is ongoing. Build sustainable processes, not just project deliverables.
• Ignoring integration: Siloed systems create gaps. Plan for how data flows between systems.

Getting Started

If you haven't started preparing, here are immediate actions:

1. Read the Act and supporting materials: Understand what's actually required, not just headlines
2. Engage your board: Governance needs to understand their accountability
3. Assess your systems: Identify gaps honestly
4. Talk to your technology partners: Understand what support is available
5. Start budgeting: These changes require investment

The Opportunity

While the new Act creates compliance obligations, it also presents an opportunity. Providers who embrace the intent—genuinely putting consumers at the centre—will differentiate themselves in an increasingly competitive market.

Better systems don't just support compliance; they improve operations, reduce risk, and enable better care. The providers who view this as an opportunity rather than a burden will come out ahead.