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Labor-stacked Senate Inquiry presses for urgent passage of Aged Care Act changes

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Less than a month after being introduced to Parliament, two Bills amending the new Aged Care Act have been backed by a Senate inquiry report that calls for them to be passed “without delay.”

The Aged Care and Other Legislation Amendment Bill 2025 and the Aged Care (Accommodation Payment Security) Levy Amendment Bill 2025 were introduced on 24 July 2025, and referred to the Senate Community Affairs Legislation Committee a week later. The committee comprises four Labor Party members, three Liberal Party Senators and one Australian Greens Senator, and is chaired by Labor's Dorinda Cox.

The inquiry held a hearing in Canberra on 8 August, received 20 submissions, and commissioned a technical report from MinterEllison.

Its 60-page report makes just one recommendation: that the Bills be passed in the first sitting week of the Senate. The committee stressed “the need for timely aged care reforms” but also noted several concerns raised by stakeholders.

Among them:

  • The inclusion of a “Henry VIII clause” allowing the Minister to create regulations for two years to resolve unintended consequences of the Act. The committee said such rules would still be subject to scrutiny.
  • The requirement for separate HELF and service agreements, which could add complexity to admissions. The Department was urged to support providers through the transition.
  • The automation of administrative functions, which the committee said would improve transparency, while noting assurances from the Department that human oversight remains in place.

The report also pointed to the Government’s own delays. The two Bills were not released until 24 July, weeks after the Government announced on 4 June that the new Aged Care Act would be postponed.

“This inquiry confirmed existing Government legislation was not adequate to implement their package of reforms, and that on balance, it was the Government who required more time to ready their systems for change, not the sector,” the report said.

Both the House of Representatives and the Senate return on Monday (25 August).


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