Aged Care

Labor made a promise to Australians that we would take better care of their loved ones. We have delivered on this promise.  In the first sitting fortnight of the 47th Parliament, the Albanese Labor Government passed the Aged Care and Other Legislation Amendment (Royal Commission Response) Bill 2022 - delivering on commitments to reform aged care.


The bill was passed in the Senate on Tuesday 2 August 2022, enabling major improvements to aged care in line with the recommendations of the Royal Commission into Aged Care Quality and Safety.

The Labor Government made a promise to restore dignity, humanity and security for older Australians and this Bill is a critical first step in improving aged care.


This legislation:

  • Replaced the outdated Aged Care Funding Instrument with a new aged care subsidy funding model from 1 October 2022. The new AN-ACC model offers a more equitable approach, with funding that better matches the provider’s costs of meeting the care needs of residents.
  • Enabled the publication of the star ratings for all residential aged care services by the end of 2022. This Star Ratings system has put a spotlight on the sector, allowing older Australians and their families to compare quality and safety performance of different services and providers.
  • Included measures to extend the Serious Incident Response Scheme (SIRS) to all in home care providers, commencing from 1 December 2022.
  • Introduced a new Code of Conduct for approved providers, aged care workers and governing persons from 1 December 2022.

Labor has also increased aged care workers wages. We ensured that wages are representative of the vital work that aged care workers do in providing the care that older Australians deserve. The Government funded a 10 per cent increase from 1 July 2024, and will fund a further 5 per cent increase from 1 July 2024. Labor's IR reforms will also support workers to negotiate higher rates of pay beyond the minimum award wage increases awarded by the Fair Work Commission. 


After nine years of neglect, reform in aged care has finally begun. This task will take years, but this bill passing is a critical first step to ensure our most vulnerable people are treated with the dignity they deserve.