Australia’s aged care system is on the brink of generational reform. With the Aged Care Act 2024 set to take effect from 1 July 2025, we are witnessing a fundamental shift in how care is delivered, regulated and experienced. At Sprint, we believe this transformation creates both a moral imperative and a market opportunity, to reimagine care models that are not only rights-based and people-centred, but also digitally-enabled and scalable.
As early investors in UMPS, a voice-first in-home safety platform, and Hayylo, a care communication and engagement solution, we’re excited about how these reforms validate the need for innovative, tech-powered solutions that empower older Australians to live independently and with dignity. In this post, we break down what the new legislation means for the sector and why we’re backing the next generation of aged care enablers.
The new Aged Care Act 2024 is being introduced in direct response to the findings of the Royal Commission into Aged Care Quality and Safety, which delivered its final report in March 2021.
The Royal Commission uncovered systemic failures in the existing system, including:
- Unsafe and substandard care across residential and home care services
- Inadequate regulation and accountability
- Poor workforce conditions and training
- Disempowerment and neglect of older people receiving care
Its central recommendation was to replace the current legislative framework with a rights-based Act that re-centres the system around the dignity, will, and preferences of older people.
Shift in Philosophy
The new Act marks a paradigm shift from provider-centric care to person-centred, rights-based care, drawing on principles from:
- Human rights law (including the UN Convention on the Rights of Persons with Disabilities)
- Best-practice governance and safeguarding
- Modern regulatory design, with emphasis on outcomes, not just inputs
It also introduces modern language and concepts such as:
- Supported decision-making
- Duty of care for providers
- Transparency, responsiveness, and enforceability in complaints and compliance
Overview of the key reforms
- Rights-Based Framework
- Introduction of a Statement of Rights, ensuring older individuals have autonomy, respect, and access to safe, quality care.
- Providers are mandated to align services with these rights, replacing the previous Charter of Aged Care Rights.
- New Regulatory Model
- Implementation of a risk-based registration system categorizing providers into six service types, each with tailored obligations.
- Enhanced powers for the Aged Care Quality and Safety Commission to oversee compliance and enforce standards.
- Strengthened Provider Obligations
- Mandatory registration with the Commission for all providers.
- Compliance with updated Aged Care Quality Standards, a new Code of Conduct, and Financial and Prudential Standards.
- Enforcement of worker screening requirements and adherence to new statutory duties of care.
- Governance Responsibilities
- Introduction of explicit duties for directors and senior managers (termed “responsible persons”) to ensure high-quality care delivery.
- Providers are held accountable for the standard of care, with obligations linked directly to service outcomes.
- Support at Home Program
- Launch of the Support at Home initiative, consolidating existing in-home care programs to streamline services.
- The Commonwealth Home Support Programme will transition into this model no earlier than 1 July 2027.
- Financial Contributions and Protections
- Introduction of means-tested co-contributions for non-clinical care services.
- Implementation of hardship provisions to safeguard individuals with limited financial means.
- Assurance that individuals in the system prior to 12 September 2024 will not face financial disadvantages due to these changes.
- Enhanced Complaint Mechanisms
- Establishment of an independent Complaints Commissioner to oversee and ensure transparency in the complaints process.
- Strengthened whistleblower protections to encourage reporting of issues without fear of reprisal.
- Supported Decision-Making
- Legal recognition of supported decision-making, allowing older individuals to appoint supporters to assist in care-related decisions, ensuring their preferences and autonomy are respected.
Key Takeaway
As the aged care sector prepares for this landmark legislative shift, one thing is clear: the future of care will be co-designed with technology, guided by rights and driven by outcomes. At Sprint we see this not just as a regulatory update but as a generational opportunity to invest in solutions that restore agency, improve safety and enable connection for our ageing population. We remain committed to backing founders who are building the infrastructure of a fairer, smarter and more human-centred aged care system.
Author: Georgia Barkell is the Managing Partner of Sprint Ventures.
