Key Changes and Developments in the Australian Aged Care and Nursing Sector Since July 2025

The Australian aged care and nursing sector has continued to undergo significant reform since mid-2025, as governments, regulators, and providers work to strengthen care quality, workforce capability, and system sustainability. These changes are part of a long-term response to sector pressures, workforce shortages, and the findings of the Royal Commission into Aged Care Quality and Safety.

This article outlines the most important policy, workforce, and regulatory developments that healthcare professionals and service providers should be aware of since July 2025.

Introduction of the New Aged Care Act

One of the most significant milestones for the sector is the commencement of the new Aged Care Act, which replaced the Aged Care Act 1997 from 1 July 2025.

The new Act introduces:

• A rights-based framework for older people

• Stronger obligations on providers to deliver safe and quality care

• Increased transparency and accountability across services

The legislation shifts the focus from provider-centred operations to older person-centred care, aligning aged care more closely with Australia’s broader health and human rights frameworks.

Oversight and enforcement responsibilities continue to sit with the Australian Aged Care Quality and Safety Commission, with enhanced powers to monitor compliance and take regulatory action where standards are not met.

Ongoing Workforce Reforms and Mandatory Care Minutes

Workforce reform remains a priority area across aged care and healthcare settings.

Since mid-2025:

• Mandatory care minute requirements remain in force for residential aged care

• Facilities continue to be required to provide a minimum level of RN coverage

• Greater scrutiny is being placed on how staffing models support care quality, not just compliance

These requirements are designed to improve clinical oversight, reduce adverse events, and strengthen continuity of care for residents.

Continued Use and Review of the AN-ACC Funding Model

The Australian National Aged Care Classification (AN-ACC) funding model continues to guide residential aged care funding.

Recent sector discussions have focused on:

• Refinements to care classification assessments

• Alignment between funding, care complexity, and workforce capability

• Ensuring funding supports appropriate clinical skill mix

Facilities are increasingly expected to demonstrate how staffing and care delivery align with assessed resident needs under AN-ACC.

Strengthened Clinical Governance Expectations

Since July 2025, there has been increased emphasis on clinical governance and risk management, including:

• Clear lines of clinical accountability

• Regular review of care outcomes and incidents

• Stronger documentation and reporting processes

Regulators now expect providers to show evidence of proactive governance systems rather than reactive compliance.

Nursing Workforce Trends and Professional Practice

Across the broader nursing sector, recent trends include:

• Continued national nursing shortages

• Increased reliance on flexible workforce models

• Greater focus on wellbeing, fatigue management, and retention strategies

The Nursing and Midwifery Board of Australia continues to emphasise professional standards, scope of practice clarity, and ongoing competence for registered and enrolled nurses.

Digital Health and Reporting Improvements

The aged care and healthcare sectors are also seeing:

• Expanded use of digital care documentation systems

• Improved data reporting to support quality monitoring

• Greater integration between funding, compliance, and care outcome data

These changes aim to reduce administrative burden over time while improving visibility of care quality across services.

What These Changes Mean for the Sector

Together, these reforms signal a continued shift toward:

• Rights-based, person-centred care

• Stronger governance and accountability

• Workforce models that prioritise skill mix and safety

• Ongoing regulatory oversight and transparency

For providers, nurses, and healthcare organisations, staying informed about legislative and regulatory developments is essential to maintaining compliance and delivering high-quality care.

Conclusion

Since July 2025, Australia’s aged care and nursing sector has continued its transformation through legislative reform, workforce initiatives, and strengthened governance expectations. These changes reflect a broader commitment to improving care quality, supporting the nursing workforce, and ensuring that aged care services meet the evolving needs of older Australians.

Ongoing education and awareness will remain critical as the sector continues to adapt.