Why is aged care changing?

Our aged care system is currently world class. However, people are living longer thanks to better health and better health care.

We need to make some fundamental changes, now, to ensure the system:

  • is sustainable and affordable
  • offers choice and flexiblity for consumers
  • encourages businesses to invest and grow
  •  provides diverse and rewarding career options.

Moving towards consumer-directed care is a big part of the changes we’re making to the aged care system. It means people will have greater choice, and care will be based on needs.

The traditional image of aged care is often associated with residential aged care, but most people want to stay independent, remain in their home and connected to family and community for much longer. Our investment in home support and home care packages means that people will have greater choice and flexibility when it comes to home-based care and support.

What is changing?

Aged care reforms are being progressively implemented in three phases over 10 years, so our aged care system can be sustainable and affordable, and be the best possible system for all Australians.

2012-13 and 2013-14

Years one and two delivered immediate, urgently needed improvements while laying the groundwork for further reform. We introduced the new Home Care Packages and supplements in both home care and residential care, My Aged Care, including a national contact centre began operations, the Australian Aged Care Quality Agency was established, and the Aged Care Pricing Commission was also launched.  For more information about changes already implemented, see What has been achieved so far?

2014-15 and 2015-16

Years three and four are delivering improved access and choice for consumers, and stronger system sustainability. The 2015-16 changes build on those already achieved, including implementation of the national voluntary quality indicators for aged care and introduction of a national fee framework for the Commowealth Home Support Programme.

2016-17 to 2021-22

Changes to be implemented in this phase will be developed in consultation with the aged care sector. The legislation mandates a five-year review be undertaken to look at the impact of reforms to date and where we need to take the system in the future.

By 2022, our vision is that Australia’s aged care system will:

  • be sustainable and affordable, long into the future
  • provide diverse and rewarding career options
  • encourage aged care businesses to invest and grow
  • offer greater choice and flexibility for consumers, and
  • support people to stay at home, and part of their communities, for as long as possible.

What has been achieved so far?

We have already implemented the following improvements to Australia’s aged care system:


The Aged Care Act 1997 and the Aged Care (Transitional Provisions) Act 1997 and supporting subordinate legislation came into effect on 1 July 2014.

Further Information on aged care legislation can be found on the Aged Care Reform Legislation page.

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