The Aged Care Accommodation Agreement will undergo significant reform under the Aged Care Act 2024 (Cth), which comes into effect on 1 July 2025. These changes aim to improve transparency, protect residents, and streamline the agreement process in residential aged care settings.
What Is an Aged Care Accommodation Agreement?
An Aged Care Accommodation Agreement is a legally binding contract between a resident and an aged care provider. It outlines the fees, terms of entry, and living arrangements. The upcoming changes introduce stricter requirements for content, timing, and disclosure.
Key Changes Under the Aged Care Act 2024
1. Pre-Entry Disclosure Obligations
Providers will now be required to present the following documents before a resident enters care:
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A draft of the Aged Care Accommodation Agreement
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Payment details including Refundable Accommodation Deposit (RAD) and Daily Accommodation Payment (DAP)
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Any other prescribed documentation under the new Rules
These documents must also be provided to any nominated supporter or decision-maker of the resident.
➡️ Read more about residential aged care reforms on the Department of Health website
2. Agreement Must Be Signed Before Care Begins
One of the most important changes is the removal of the 28-day grace period. From 1 July 2025, the Aged Care Accommodation Agreement must be signed before a resident begins receiving funded aged care services.
This places more responsibility on providers to ensure documentation is finalised promptly.
3. Mandatory Information in Agreements
The agreement must now include:
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Entry date (or expected entry)
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Accommodation cost and payment structure
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Chosen payment method (RAD, DAP, or both)
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Calculation method for combined payments
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Retention amounts, if applicable
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Indexation rules for daily payments
➡️ Need help understanding accommodation fees? Our Wills & Estates team can help.
4. New Compliance Obligations for Providers
Provider obligations have now been reframed as conditions of registration. Failure to comply may result in civil penalties under the new Act. It’s more important than ever to have compliant systems and trained staff.
What Should Aged Care Providers Do Now?
To remain compliant, providers should:
✅ Update agreement templates in line with new requirements
✅ Train staff on the updated Aged Care Accommodation Agreement process
✅ Monitor the release of final Rules for further obligations
➡️ Unsure where to start? Speak to our team for practical legal advice.
Conclusion
The new Aged Care Accommodation Agreement rules reflect a broader shift towards transparency, consumer protection, and accountability in aged care. Whether you’re a provider or family member, understanding these changes is critical.
At MCB Lawyers, we’re here to guide you through these legal reforms and ensure you’re well prepared.
Stay Ahead of Aged Care Law Reforms with MCB Lawyers
At MCB Lawyers, we’re here to help you navigate these critical regulatory changes with confidence. Our team can assist you in:
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Updating and reviewing your accommodation agreements
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Providing training and support for your staff
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Ensuring full compliance with the Aged Care Act 2024 by the 1 July 2025 deadline
📞 Contact us today to discuss how we can support your transition and safeguard your operations.