Navigating new liabilities: how the Aged Care Act 2024 reshapes risk for service providers

Navigating new liabilities: how the Aged Care Act 2024 reshapes risk for service providers

With Australia’s new Aged Care Act 2024 (Cth) commencing on the 1st of November 2025, service providers will face increased pressure to ensure the quality of care they deliver is of a high standard. With expanded statutory duties, heightened regulatory scrutiny, and new exposures for legal liability, this legislation marks a significant shift in how care organisations must approach governance and accountability. These changes demand more than operational adjustment; they require a fundamental reassessment of your risk management plan, to ensure that your organisation is not only compliant, but that your workers and the older people in your care are properly protected.

Key features of the Aged Care Act 2024: a rights-based framework

The rights and care of older people at the centre 

The Aged Care Act replaces the 1997 legislation and is designed to create a rights-based, person-centred aged care system. It is more extensive than the Act it replaces as it responds to 58 recommendations from the Royal Commission into Aged Care Quality and Safety¹.  Its main purpose is to place the needs of older people at the centre of the aged care system including their safety, health and wellbeing. It aims to empower older people through upholding their rights and personal choices. In addition to this, the way that the Aged Care Quality and Safety Commission operates, and the powers it has to hold providers to account, will also change to guarantee that high quality care is delivered. 

Critical compliance areas for service providers 

The Act encompasses several key requirements and implications for service providers. Some of the areas providers need to pay particular attention to are outlined below²: 

• Mandatory registration – all providers must register with the Aged Care Quality and Safety Commission, including those delivering CHSP and NATSIFAC services. 
• Statement of Rights compliance – service providers must align their services with a formal Statement of Rights that aims to secure the dignity, safety and personal choice of older people.
• New statutory duties – this includes duties of care, worker screening and financial prudence of service providers. 

An increasing risk landscape  

This new Act marks a positive change in the prioritisation of the needs of older people, increasing the quality of care they receive. However, it will simultaneously introduce a growing landscape of risks to navigate for service providers. These include, but are not limited to:

• Expanded legal liability – now providers and individuals who bear responsibility (e.g. executives, managers, nurses) face statutory duties. Any breaches of these can result in civil penalties, personal liability, and subsequent compensation claims.
• Regulatory enforcement – The Commissioner and System Governor now have stronger powers to investigate providers, such as physically entering homes and issuing banning orders. Unannounced inspections and assurance activities should be expected and prepared for. 
• Whistleblower exposure – new protections mean that organisations should be prepared for staff and stakeholders to come forward and report misconduct, perhaps more frequently than before. 
• Information governance – as stricter rules around data handling, transparency and disclosure are enacted, service providers should be aware that mishandling sensitive information could lead to compliance breaches and reputational damage.  
• Governance and compliance burden – failure to align with new responsibilities outlined in the previous section could result in loss of registration, funding claw backs or even public sanctions.
• The impacts on your organisation and people as a whole – change can be a stressful time for organisations, with new obligations meaning your people, operations and assets will be under greater pressure and scrutiny.

Mitigating risk: how Howden can support providers through transition 

The Australian Government have created an Aged Care Transition Taskforce to help the sector adapt seamlessly to the new Act. Howden can complement the work done by this taskforce by offering solutions to help implement risk management strategies to improve compliance and reduce the likelihood of regulatory breaches occurring in your organisation. 

By partnering with Howden, your organisation will gain access to people-risk experts who understand the strategies required to support you and your people throughout this transition.

We’re able to meet you where you’re at in your risk management journey. We can strengthen what’s currently in place but also craft a tailored approach to ensure that your organisation meets the demands of this new legal and regulatory framework with confidence.  
 

Howden’s expertise and risk-led approach can help protect your people, operations and assets. We understand what is required to strategically adapt to the evolving risk landscape that this new Aged Care Act will bring to empower you to feel confident in your ability to deliver a high-quality of service to older people throughout Australia.

– Jacqui Milson, Head of Howden Care

¹Aged Care Quality and Safety Commission, About the new Aged Care Act and key changes for providers, Aged Care Quality and Safety Commission, https://www.agedcarequality.gov.au/providers/reform-changes-providers/about-new-aged-care-act-and-key-changes-providers [accessed 17 July 2025].
²Aged Care Quality and Safety Commission, About the new Aged Care Act and key changes for providers, Aged Care Quality and Safety Commission, https://www.agedcarequality.gov.au/providers/reform-changes-providers/about-new-aged-care-act-and-key-changes-providers [accessed 17 July 2025].
³Department of Health and Aged Care, Aged Care Transition Taskforce, Australian Government, https://www.health.gov.au/committees-and-groups/aged-care-transition-taskforce#role (accessed 21 July 2025).
⁴Department of Health and Aged Care, Aged Care Transition Taskforce, Australian Government, https://www.health.gov.au/committees-and-groups/aged-care-transition-taskforce#role [accessed 21 July 2025].