Aged Care Act 1997
The Aged Care Act 1997 established the modern framework for Commonwealth-funded aged care services in Australia. The Act governs the approval, funding, and regulation of residential aged care, home care, and flexible care services. The Act establishes the Aged Care Quality and Safety Commission, which accredits and monitors aged care providers. The Act provides for the subsidy of aged care places (residential and home care packages), user contributions and fees (including the means-tested care fee and accommodation payments), and the rights of aged care recipients, including the Aged Care Charter of Rights. The Act was significantly reformed following the Royal Commission into Aged Care Quality and Safety (2021).
Legal area: Medical and health law governs healthcare provision, pharmaceutical benefits, aged care, and public health regulation.
Year enacted: 1997
Full text: https://www.legislation.gov.au/Details/C1997A00102
Key Provisions
- Part 2: Approval of providers (quality and suitability requirements)
- Part 3: Allocation of aged care places (residential and home care)
- Part 4: Subsidies and supplements for approved providers
- Part 5: User contributions (basic daily fee, means-tested care fee, accommodation payments)
- Part 6: Quality and safety (accreditation, monitoring, sanctions)
- Part 7: Complaints and investigations
- Schedule 1: The Aged Care Charter of Rights
- Part 9: Approved providers’ responsibilities
Significance
The Aged Care Act 1997 provides the legislative framework for a sector supporting over 1.3 million older Australians. Following the Royal Commission into Aged Care Quality and Safety (2018-2021), which found systemic failures in the sector, the Act was substantially amended by the Aged Care and Other Legislation Amendment (Royal Commission Response) Act 2022, including the introduction of the Aged Care Charter of Rights, strengthened quality standards, and increased home care funding.