Aged Care Legislation Amendment (March Indexation and Other Measures) Rules 2026

EXPLANATORY STATEMENT

Issued by the authority of the Minister for Aged Care and Seniors

Aged Care Legislation Amendment (March Indexation and Other Measures) Rules 2026

Purpose

The Aged Care Legislation Amendment (March Indexation and Other Measures) Rules 2026 (the Instrument) makes targeted amendments to the Aged Care Rules 2025 (the Rules) and the Aged Care (Consequential and Transitional Provisions) Rules 2025 to support the ongoing implementation of the Aged Care Act 2024 (the Act) and ensure the aged care system remains accurate, fair, transparent and operationally efficient.

A key purpose of the Instrument is to apply March indexation to relevant thresholds, caps, and subsidy-related amounts, including:

• accommodation-related supplements and applicable amounts
• income and asset testing thresholds
• annual and lifetime caps
• the daily accommodation payment index number.

This Instrument also amends the Rules to support the safe and consistent operation of specialised status determinations for residential aged care, including establishing clear circumstances for revocation and notice obligations. This instrument also clarifies the policy intent that a home may only hold one specialised status at a time.

This Instrument updates obligations relating to registered nurse requirements and exemptions, including arrangements for Multi-Purpose Service Program providers, improves the rules for estimating advance payments, and clarifies accommodation bond and refundable deposit interest calculations.

This Instrument also makes minor changes to align terminology and cross references with the drafting conventions of the Act, including updating documents incorporated by reference and definitions, clarifying requirements for assessments and means testing, and strengthening transparency in service agreements and fee setting. Some of these changes respond to issues raised by the Senate Standing Committee for the Scrutiny of Delegated Legislation in its consideration of the Rules.

Together, these amendments ensure the legislative framework can be administered in an accurate, fair, transparent and operationally efficient way that enhances fairness for older Australians receiving aged care services.

Outline

Broadly, this Instrument makes amendments to:

• implement the March 2026 indexation round across thresholds, caps and subsidy related amounts;
• revise interest arrangements for refunds of refundable deposits and accommodation bonds;
• refine specialised status determinations (including revocation circumstances and notice requirements);
• clarify assessment and means testing processes (including a 43-day period for providing requested information);
• update transparency requirements in service agreements;
• set out a method for estimating advance payments; and
• phase in registered nurse obligations and associated reporting for Multi-Purpose Service Program providers.

Background

March 2026 Indexation

Part 10 of Schedule 1 of this Instrument gives effect to the March 2026 routine indexation round.

Routine indexation under the aged care legislative scheme is applied throughout the year. The March 2026 indexation process adjusts:

• lifetime caps on means tested care fees
• annual caps for post-2014 contribution classes
• income and asset thresholds for residential and home care means assessments
• applicable amounts used in accommodation and respite supplement calculations
• home value caps and transitional provisions.

The amendments ensure providers can apply the correct rates from 20 March 2026 and that system settings remain aligned with contemporary costs of care.

Interest payable on the refund of a refundable deposit balance or accommodation bond balance

To enhance the clarity in calculating interest payable on refunds of accommodation bonds and refundable deposits, the Instrument replaces entire interest calculation provisions, inserting formulas based on:

• base interest rate
• maximum permissible interest rate
• pre-2014 maximum permissible interest rate (where relevant)
• whether refunds occur within or outside the “refund period”.

Specialised status determinations for residential care

This Instrument introduces a clearer framework for when the System Governor may revoke the specialised status of an approved residential care home, including Aboriginal and Torres Strait Islander specialised status and homeless specialised status. The new Subdivisions introduced in Part 5 of Schedule 1:

• define revocation circumstances
• provide formulas for calculating care percentages
• specify notice and reconsideration requirements
• confirm policy intent that homes may hold only one specialised status at a time.

These amendments strengthen regulatory clarity and support consistent application across the sector.

Means testing and required information timeframes

This Instrument introduces a uniform 43-day period for individuals to provide information requested by the System Governor for means testing, aligning with administrative timeframes incorporating postal periods and system processes.

Other changes update the method statements for calculating the individual contribution rate for the post-2014 home contribution class, the asset reduction amount, the input contribution rate for the post-2014 home contribution class, and rounding rules to ensure consistency with social security legislation.

Service agreements, fees and transparency

Part 4 of Schedule 1 of this Instrument make amendments to Chapter 4 of the Rules to clarify what must be included in service agreements, including:

• statements about applicable fees
• the provider’s policies and practices for setting and updating fees
• consistency across service groups.

Registered nurse requirements and exemptions

Schedules 3–5 of this Instrument amend obligations for providers regarding registered nurses, including:

• clarifying criteria for exemption
• establishing specific exemption rules for Multi-Purpose Service Program providers
• setting notice and reconsideration requirements for revocations
• phasing in registered nurse obligations and associated reporting for Multi-Purpose Service Program providers from 1 July and 1 October 2026 respectively.

Technical and drafting amendments

The instrument makes a wide range of technical changes to improve legislative clarity, including:

• updating certain definitions in section 5-5 of the Rules
• correcting cross references
• ensuring consistent terminology (“approved residential care home”)
• adding subheadings
• rounding conventions for supplements for veterans and dementia & cognition.

Application, saving and Transitional Provisions

Additional transitional arrangements support implementation of new care minute rules and requirements regarding for registered nurses.

Authority

This instrument is authorised under the Aged Care Act 2024 and the Aged Care (Consequential and Transitional Provisions) Act 2024. 

This Instrument also relies on subsection 33(3) of the Acts Interpretation Act 1901 which provides that where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

Consultation

Routine indexation of supplements, rates and thresholds in this Instrument are calculated using a well-established formula based on the CPI as a measure of the movements in the non-labour costs of providers. Accordingly, no specific consultation was undertaken with respect to the amounts to which routine indexation has been applied in this Instrument.

Information about the increase in rates and relevant thresholds from 20 March 2026 will be disseminated by the Department of Health, Disability and Ageing via electronic media to approved providers.

The Department of Health, Disability and Ageing has also consulted with Services Australia in developing this Instrument to ensure operational alignment.

The amendments address issues arising in the implementation of the new act and have been reflected in discussions with stakeholders and other feedback received on the operation of the act. To the extent that the amendments create obligations on aged care providers or older people, those obligations are consistent with existing public information and previous legislative requirements, and so not unanticipated

Incorporation by reference

This Instrument updates a number of documents incorporated by reference in the Rules. These amendments are made following issues raised by the Senate Standing Committee for the Scrutiny of Delegated Legislation in its consideration of the Rules.

Item 1 of Schedule 1 updates the definition of the Barthel Index of Activities of Daily Living to refer directly to the underlying clinical index in the tool, rather than incorporating the tool by reference to the Quality Indicator Program Manual. It inserts a note to clarify that the index can also be found in the Quality Indicator Program Manual, which is published on the department’s website.

The document incorporated is referenced with sufficient specificity as it is a journal article (in Collin C, Wade DT, Collin C, Davies S, Horne V. The Barthel ADL Index: a reliability study. Int Disabil Stud. 1988;10(2):61-3. doi: 10.3109/ 09638288809164103. PMID:  3403500). While the document is unable to be freely accessed, we have noted in the explanatory statement below that the relevant outcomes in the index relating to the clinical tool (and which are relied upon for the assessment) are found in the Quality Indicator Program Manual, which is freely accessible on the department’s website. The manner of incorporation is at the point in time that the article was published.

Item 9 of Schedule 1 updates the definition of the Quality of Life Aged Care Consumers ©Flinders University 2022 (QOL-ACC) Tool by referring directly to questions found in the underlying clinical tool, rather than incorporating the tool by reference to the Quality Indicator Program Manual. It inserts a note to clarify that the questions in the tool can also be found in the Quality Indicator Program Manual which is published on the department’s website.

The tool is not freely accessible; however, we have noted in the explanatory statement further below that the relevant questions relating to the clinical tool are found in Appendix D of the Quality Indicator Program Manual on the department’s website. The document will be incorporated at a point in time when the rules are registered on 20 March 2026.

Item 10 of Schedule 1 updates the definition of the Quality of Care Experience - Aged Care Consumers ©Flinders University 2022 (QCE-ACC) Tool) by referring directly to questions found in the underlying clinical tool, rather than incorporating the tool by reference to the Quality Indicator Program Manual. It inserts a note to clarify that the questions in the tool can also be found in the Quality Indicator Program Manual, which is published on the department’s website.

The tool is not freely accessible; however, we have noted in the explanatory statement below that the relevant questions relating to the clinical tool are found in Appendix C and D of the Quality Indicator Program Manual published on the department’s website. The document will be incorporated at a point in time when the rules are registered on 20 March 2026.

Retrospective commencement

This Instrument provides for retrospective commencement in respect of Schedule 6 as amending the Aged Care (Consequential and Transitional Provisions) Rules 2025. This provision provides for a circumstance where registered providers of residential care are not required to give an audited care minutes performance statement to the System Governor at the end of their financial year.

A registered provider may, in certain circumstances, have a different financial year reporting period under paragraph 166-355(1)(b) of the Rules, being the end of a calendar year. The operation of this paragraph of the Rules would mean that, due to the commencement of the Act on 1 November 2025, such a registered provider would be required to provide a professionally audited financial statement over a period of two months only, being November and December 2025. This reporting and administrative requirement provides limited benefit to the provider or System Governor. Data for registered providers’ care minutes obligations (primarily to pay correct amounts of subsidy) is otherwise collected by the System Governor and consequently it would be appropriate in the circumstances to provide a one-off exception to this reporting requirement by retrospective operation of the Rules. The proposed amendment makes an exception to this requirement for this specific period.

Retrospective application of the law is subject to statutory frameworks. In accordance with section 12(2) of the Legislation Act 2003, “an instrument or provision does not apply for a person… to the extent that as a result of that commencement:

(a) the person’s rights as at the time the instrument is registered would be affected so as to disadvantage the person; or

(b) liabilities would be imposed on the person in respect of anything done or omitted to be done before the instrument is registered.”

The proposed provision is intended to work with beneficial effect to ensure registered providers are not in an inadvertent state of non-compliance due to technical requirements of the Act. The provision remains consistent with the intent of the Legislation Act 2003 that a person is not disadvantaged or subject to new liabilities as a result of the law operating retrospectively.

General

This instrument is a legislative instrument for the purposes of the Legislation Act 2003.

Details of this instrument are set out in Attachment A.

This instrument is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment B.

ATTACHMENT A

Explanation of the provisions

Section 1 – Short title

This section provides that this instrument is the Aged Care Legislation Amendment (March Indexation and Other Measures) Rules 2026.

Section 2 – Commencement

This section provides for the commencement of each provision in the rules, as set out in the table at subsection 2(1).

The table provides that sections 1 to 4 and anything else in this Instrument not covered elsewhere by the table commence the day after this Instrument is registered.

The table then provides that:

• Schedule 1 commences on 20 March 2026
• Schedule 2 commences on 23 March 2026
• Schedule 3 commences on 1 April 2026
• Schedule 4 commences on 1 July 2026
• Schedule 5 commences on 1 October 2026
• Schedule 6 commences on 1 November 2025

Subsection 2(2) explains that information in column 3 of the table is not part of this Instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this Instrument.

Section 3 – Authority

This section provides that this instrument is made under the Aged Care Act 2024 and the Aged Care (Consequential and Transitional Provisions) Act 2024.

Section 4 – Schedule

This section confirms that each instrument that is specified in a Schedule to this instrument is amended or repealed as per the Schedule. Any other item in a Schedule to this instrument has effect according to its terms.

Schedule 1 – Amendments commencing 20 March 2026

Part 1—Chapter 1 amendments

Aged Care Rules 2025

Item 1—Section   5-5 (definition of Barthel Index of Activities of Daily Living)

This amendment repeals the definition of the Barthel Index of Activities of Daily Living.

Item 2—Section 5-5 (definition of Barthel Index of Activities of Daily Living)

This amendment replaces the definition of the Barthel Index of Activities of Daily Living. It inserts a new definition which refers directly to the Barthel Index, which is found in the underlying clinical tool, rather than referring to the Quality Indicator Program Manual. It inserts a note to clarify that the relevant outcomes found in the index (which are the aspects of the tool relied upon) relating to the clinical tool are found in the Quality Indicator Program Manual. The Quality Indicator Program Manual is freely accessible on the department’s website.

Item 3—Section 5-5 (definition of base interest rate)

This amendment repeals the definition of base interest rate and substitutes this with a new definition that has the same meaning but is written in a manner that is better aligned to the current legislative framework. The new definition also provides greater clarity that the base interest rate relates to a day.              

Item 4—Section 5-5 (definition of below threshold rate)

This amendment repeals the definition of below threshold rate and substitutes this with a new definition that has the same meaning but is written in a manner that is better aligned to the current legislative framework. The new definition also provides greater clarity as to how the below threshold rate is identified.

Item 5—Section 5-5 (definition of Consumer Experience Assessment)

This item replaces “Quality of Care Experience Aged Care Consumers ©Flinders University 2022 (QCEACC) Tool” with “Quality of Care Experience questions” to refer directly to the new definition of “Quality of Care Experience questions” inserted by Item 9.

Item 6—Section 5-5 (definition of post-2014 home contribution class)

This amendment ensures that anyone in the post-2014 home contribution class will remain in that class if they cease receiving care and then return at a later date. This is to prevent their No Worse Off Principle status being removed from such a person.

Item 7—Section 5-5 (definition of Quality Indicator Program Manual)

This amendment repeals the definition of the Quality Indicator Program Manual. This definition, which incorporates the Quality Indicator Program Manual through a point-in-time reference, is no longer required. Amendments are being made by this Instrument to the definitions of various clinical assessment tools to refer to the underlying clinical tool and to remove references to the Quality Indicator Program Manual from those definitions. 

Item 8—Section 5-5 (definition of Quality of Care Experience - Aged Care Consumers ©Flinders University 2022 (QCE-ACC) Tool)

This item repeals the definition of the “Quality of Care Experience - Aged Care Consumers ©Flinders University 2022 (QCE-ACC) Tool)”.

Item 9—Section 5-5 (definition of Quality of Care Experience - Aged Care Consumers ©Flinders University 2022 (QCE-ACC) Tool)

This item replaces the definition of the Quality of Care Experience - Aged Care Consumers ©Flinders University 2022 (QCE-ACC) Tool) with a new definition that refers directly to questions found in the underlying clinical tool, rather than referring to the Quality Indicator Program Manual. It inserts a note to clarify that the relevant questions relating to the clinical tool are found in the Quality Indicator Program Manual. The Quality Indicator Program Manual is freely accessible on the department’s website.

Item 10—Section 5-5 (definition of Quality of Life - Aged Care Consumers ©Flinders University 2022 (QOL-ACC) Tool)

This amendment repeals the definition of the Quality of Life Aged - Care Consumers ©Flinders University 2022 (QOL-ACC) Tool due to amendments made to the definition of Quality of Life Assessment and the insertion of a new definition for Quality of Life questions.

Item 11—Section 5-5 (definition of Quality of Life Assessment)

These items replace the phrase Quality of Life Aged Care Consumers ©Flinders University 2022 (QOL-ACC) Tool with a new phrase Quality of Life questions.

Item 12—Section 5-5

Item 12 inserts a new definition of Quality of Life questions to refer directly to the questions found in the underlying clinical tool, rather than referring to the Quality Indicator Program Manual. It inserts a note to clarify that the relevant questions relating to the clinical tool are found in the Quality Indicator Program Manual. The Quality Indicator Program Manual is freely accessible on the department’s website.

Item 13—Section 5-5 (the definition of queue rate) 

This provision amends the queue rate for the priority categories medium and standard. This means that individuals assigned a priority category of high or medium are allocated their place faster. The queue rate figure is used in calculating the weighting of an individual’s priority category in calculating allocation wait times. The change responds to experience from the first three months operation of the Aged Care Act 2024, in particular the relative number of urgent and high priority categories that have been assigned.

Item 14—Section 5-5 (definition of refunding event)

This amendment repeals the definition of refunding event and substitutes this with a new definition that is written in a manner that is better aligned to the current legislative framework.  The amendment also ensures the definition clearly applies to refunds of accommodation bond balances as well as refunds of refundable deposit balances. The calculation of interest under section 287‑103A of the Rules for refunds of accommodation bond balances relies on this concept.

Part 2—Chapter 2 amendments

Aged Care Rules 2025

Item 15—Subparagraph 80-15(1)(b)(i)

This amendment repeals subparagraph 80-15(1)(b)(i) of the Rules so that the period of effect for the classification level SAH restorative care pathway for the classification type short-term for the service group Home Support does not cease upon a classification decision being made to establish a classification level for the classification type ongoing for the service group home support for an individual.

This will ensure that an individual is able to finish their restorative care episode, which has a maximum period of 112 days, in situations where the individual is approved for ongoing home support before the episode has run its course.

Part 3—Chapter 4 amendments

Aged Care Rules 2025

Item 16—After paragraph 148-70(4)(d)

This amendment ensures consistency with requirements in service agreements for other service groups. The effect of this amending provision is that it is a requirement for providers to include a statement in the service agreement that the individual agrees to pay any applicable fees referred to in Chapter 4, Part 3, Division 1 of the Act. It inserts “(da) a statement that the individual agrees to pay any applicable fees referred to in Division 1 of Part 3 of Chapter 4 of the Act.” after paragraph 148-70(4)(d). There may be circumstances where a registered provider chooses not to charge any or only some applicable fees or contributions, however what is determined as applicable is to be agreed between the provider and the individual.

Item 17—Subsection 148-70(11)

This is a consequential amendment as a result of the inclusion of Division 2A of Part 3 of Chapter 4 of the Act. It inserts “, Division 2, 2A or 3” after “Division 2”.

Item 18—At the end of subsection 148-70(12)

This amendment reaffirms a long-standing requirement that providers explain to individuals the fee and contribution amounts that providers will charge when entering into a service agreement. It states that providers must specify the policies and practices the provider will follow in setting and updating the amounts of any fees or contributions that the provider will charge the individual (as set out in the agreement under subsection (11)). This is intended to provide transparency to an individual in how their fees and contributions are set and updated.

Item 19—Subparagraph 149-35(2)(d)(i)

This amendment ensures the language used aligns with subsection 148-70(4) of the Rules to avoid confusion. It replaces “any fee or contribution specified” with “any applicable fee or contribution referred to in Division 1 of Part 3 of Chapter 4 of the Act as agreed”.

Item 20—Paragraphs 150A-15(i) and (j)

This amendment removes references to base interest and maximum permissible interest, which are non-defined terms and instead refers to amounts of interest worked out using the base interest rate and maximum permissible interest rate, which are defined terms.

The amendment also combines paragraphs 150A-15(i) and (j) and corrects section cross-references to improve readability and align with other amendments made by this Instrument with respect to interest payable on the refund of a refundable deposit balance.

Item 21—Paragraphs 150A-25(g) and (h)

This amendment removes references to base interest and maximum permissible interest, which are non-defined terms, and instead refers to amounts of interest worked out using the base interest rate and pre-2014 maximum permissible interest rate, which are defined terms.

The amendment also combines paragraphs 150A-15(g) and (h) and corrects section cross-references to improve readability and align with other amendments made by this Instrument with respect to interest payable on the refund of an accommodation bond balance.

Item 22—Sections 153‑10 and 153-15

This amendment repeals sections 153-10 and 153-15 and substitutes them with a new section 153-10. This amendment ensures aged care providers provide free access to vaccines for individuals under the National Immunisation Program.

This amendment also removes the requirement for aged care providers to provide free pneumococcal and shingles vaccinations to individuals and aged care workers. This requirement is otherwise dealt with in the recommendation under the National Immunisation Program that providers provide these vaccines to individuals and workers over certain ages for free.

Item 23—Paragraph 155‑60(2)(e) 

This is a technical amendment to update the reference to the Support at Home service list to the most recent version of the service list now published on the department’s website. This ensures that the most up to date version of the Support at Home service list published on the department’s website is provided for under this requirement. This issue was raised by the Senate Standing Committee for the Scrutiny of Delegated Legislation in its consideration of the Rules.

Item 24—Paragraph 155‑60(2)(e) (note) 

This is a technical amendment to update the reference to the Support at Home service list in the note under subsection 155-60(2) of the Rules. It refers to the most recent version of the service list now published on the department’s website. This ensures that the most up to date version of the Support at Home service list published on the department’s website is provided for under this requirement.

Part 4—Chapter 5 amendments

Aged Care Rules 2025

Item 25—Section 166-20

This amendment repeals the whole of section 166-20 as this report is no longer required.  The source of vaccine data is now available through the Australian Immunisation Register.

Item 26—Paragraph 166-145(3)(b)

These amendments replace various terms and are consequential to amendments made by this instrument in section 5-5 of the Rules.

Item 26 replaces all references to “all questions in the Barthel Index of Activities Daily Living assessment tool” with “the Barthel Index questions”.

Item 27—Subsection 166-165(2)

Item 27 replaces a reference to the Quality of Care Experience Aged Care Consumers ©Flinders University 2022 (QCE‑ACC) Tool with Quality of Care Experience questions to reflect changes made to these definitions by this Instrument.

Item 28—Subsection 166-170(2)

Item 28 replaces a reference to Quality of Life Aged Care Consumers ©Flinders University 2022 (QOL‑ACC) Tool with Quality of Life questions to reflect changes made to these definitions by this Instrument.

Item 29—Paragraph 166-310(3)(b)

This is a technical amendment to paragraph 166-310(3)(b) to insert “a member of” after “be signed by”. This is intended to make the provision of information by a committee more manageable, so that a governing body is not required to sign and a member of a governing body may sign an aged care financial report. To avoid doubt, the member must still be acting in accordance with the authority of the governing body of the registered provider.

Item 30—Subsection 166-1005(1)

This is a technical amendment to replace “(a)” with “(d)” after “For the purposes of paragraph 166(1)”. This is a minor amendment to reference the correct provision in the Act.

Part 5—Chapter 7 amendments

Aged Care Rules 2025

Item 31—Subsection 231-17(1) (Note)

This is a technical amendment which inserts “of the Act” after “section 588” for clarity of interpretation.

Item 32—Subsection 231-35(1)

The Initial Entry Adjustment Supplement recognises the temporary additional costs of initially settling an individual into ongoing residential aged care at an approved residential care home. It provides for a corresponding one-time payment that is calculated at 5.28 times the national efficient price (see section 5-5 of the Rules).

This item is a technical amendment that confirms that ‘transfer’ of the operation of an approved residential care home from one registered provider to another (or certain overnight absences) while continuous provision of care at that home to an individual is maintained, does not result in payment of the supplement.

Item 33—Before section 243-5

This item inserts a new heading for Subdivision A “Specialised status determinations”. This is consequential to Item 34 of this Instrument.

Item 34—At the end of Division 4 of Part 7 of Chapter 7

This item inserts new Subdivision B “Revoking specialised status determinations on initiative of System Governor—circumstances” and Subdivision D “Revoking specialised status determinations on initiative of System Governor—Notice requirements”, as well as new sections 243A-5 to 243A-50.

Section 243A-‑5 provides that the purpose of Subdivision B is to set out circumstances in which the System Governor may revoke a specialised status determination made under subsection 243(3) of the Act for a registered provider and an approved residential care home.

Section 243A-10 sets out that the System Governor may revoke a determination made under subsection 243(3) of the Act for a registered provider and an approved residential care home when that home is transferred from one registered provider to another. A ‘transfer’ occurs when the Commissioner transfers an approved residential care home to another registered provider by:

• revoking the approval of the approved residential care home under subsection 138(1) or (2) of the Act, and;
• approving the residential care home for another registered provider under subsection 112(1) of the Act.

Section 243A-15 sets out the circumstances in which the System Governor may change the specialised status of an approved residential care home.

This item gives effect to the intent that an approved residential care home should have no more than one specialised status at a time.

Section 243A-20 sets out the circumstances whereby the System Governor may revoke specialised Aboriginal or Torres Strait Islander status from an approved residential care home where:

• for 3 consecutive payment periods, the Aboriginal or Torres Strait Islander care percentage for the home for the payment period was less than 50%; or
• the registered provider did not deliver specialist Aboriginal or Torres Strait Islander programs in the home on any day after the end of the 3 months following the application for the determination.

Subsection (2) confirms that for the purposes of subparagraph (1)(b)(i), the Aboriginal or Torres Strait Islander care percentage for an approved residential care home for a payment period is worked out using the prescribed formula care for Aboriginal or Torres Strait Islander residents divided by care for all residents multiplied by 100.

This item gives effect to the policy intent that maintenance of specialised Aboriginal and Torres Strait Islander status should reflect continued delivery of specialised programs to a predominantly Aboriginal and Torres Strait Islander resident population. Failure to maintain eligibility criteria for the specialised status triggers the System Governor’s authority to revoke that status.

Section 243A-25 sets out the circumstances where the System Governor may revoke specialised homeless status from an approved residential care home, namely where:

• for 3 consecutive payment periods, the homeless care percentage for the home for the payment period was less than 50%; or
• the registered provider did not deliver specialist homeless programs in the home on any day after the end of the period of 3 months following the application for the determination.

Subsection (2) provides that, for the purposes of subparagraph (1)(b)(i), the homeless care percentage for an approved residential care home for a payment period is worked out using a prescribed formula care for homeless residents divided by care for all residents, multiplied by 100.

This item gives effect to the policy intent that maintenance of specialised homeless status should reflect continued delivery of specialised programs to a predominantly homeless resident population. Failure to maintain eligibility criteria for the specialised status triggers the System Governor’s authority to revoke that status.

The new rules in Subdivision D are made in reliance on the ancillary ‘necessary and convenient’ limb of the rule-making power in paragraph 602(1)(b) of the Act. These new rules prescribe ancillary notice requirements which support the existing notice requirements in subsection 243A(4) and the overall operation of section 243A of the Act.

Subsection 243A(4) of the Act provides that a notice give must specify the day the revocation takes effect. These rules complement the existing notice provision by prescribing that the notice must also include reasons for the revocation, how the registered provider may apply for a new determination of specialised status, or how the provider can apply for reconsideration.

Section 243A-40 prescribes requirements for notices given under subsection 243A(1) of the Act to revoke a determination under subsection 243(3) of the Act, for a registered provider of an approved residential care home.

Section 243A-45 sets out what the notice must include where given to a registered provider because the System Governor has revoked the approval of an approved residential care home when that home has been transferred from one registered provider to another. This includes:

• reasons for the decision to revoke the determination;
• details about how the registered provider may apply for the reconsideration of the decision to revoke the determination;
• that the new registered provider of the home may apply to the System Governor for a determination under subsection 243(3) of the Act that the home has specialised status.

Section 243A-50 sets out what the notice given under subsection 243A(1) of the Act to the registered provider, where the circumstances set out in section 243A-20 (revocation of specialised Aboriginal or Torres Strait Islander status) or 243A-25 (revocation of specialised homeless status) apply for the determination (that is, in circumstances where revocation is due to failure to maintain eligibility criteria). This includes:

• reasons for the decision to revoke the determination; 
• details on how the registered provider may apply for reconsideration of the decision to revoke the determination.

Item 35—Subparagraph 247-15(b)(ii) 

This is a technical amendment that replaces “transition care therapy services” with a reference to the service type “assistance with transition care”, which better reflects the service type.

Item 36—After Division 1 of Part 10 of Chapter 7

This item inserts new Division 1A and section 256-5, which is made under section 256(3) of the Act as part of the process by which subsidy is payable for funded aged care services provided by a registered provider in an approved residential care home.

Subsection (2) provides for application criteria which specifies the process by which the System Governor estimates the payment to be made to a registered provider for a future payment period (the advance payment period).

Subsection (3) provides the requirements for estimating the amount. An example of the process in practice is as follows:

Step 1: The System Governor considers previous claim information given by a registered provider under section 257 of the Act using the month two calendar months before the advance payment period (the base payment period). For example, for a payment in August the System Governor will review the claims made for June.

Step 2: The sum of subsidy determined for the base payment period determined above is then divided by the number of calendar days on the base payment period. For example – June has 30 days. This would then result in a step 1 subsidy amount divided by 30.

Step 3: The amount worked out under step 2 is then divided by the number of operational beds on the last day of the base payment period. If a registered provider had 10 operational beds in effect, this step would result in a step 2 amount divided by 10.

Note: An operational bed is defined in the rules as a bed covered by the approval of the home that is not an offline bed for the home.  

Step 4: The sum under step 3 is then multiplied by the number of days in the advance payment period. Assuming August for the advance payment period which has 31 days, this step would result in a step 3 amount multiplied by 31. In circumstances where an approved residential care home will only be subject to an approval for part of the period, only days in which the approval is in effect will be counted for the estimate.

Step 5: The sum under step 4 is then multiplied by the number of operational beds at the time the subsidy amount is calculated. If the home had 11 operational beds on the day of the calculation, then this step would result in a step 4 amount multiplied by 11.

Step 6: The result is then rounded to two decimal places and constitutes the amount of subsidy as estimated.

Note 1 provides that any deductions under subsection 261(1) for the advance payment period must also be taken into account in estimating an amount.  

Note 2 references that any estimates of subsidy under this provision must also be increased or reduced in accordance with section 256(2)(b)(ii) of the Act. This occurs after the operation of this provision (effectively being step 7).

The operation of the Act will provide that any advance payments of subsidy in accordance with these rules will also be reconciled to take into account amounts from other payments, meaning that each month there is an advance payment any previous overpayments or underpayments will be dealt with.

This provision provides greater clarity and certainty regarding the method by which advance payments are estimated and then paid to registered providers.   

Item 37—Section 265-5

This item repeals existing section 265-5 and substitutes a new section 265-5.

Subsection (1) prescribes additional purposes for which financial assistance may be provided under paragraph s265-5(2)(g) of the Act.

Subsection (2) retains grant activities already provided for in the rules (related to information).

Subsection (3) provides that financial assistance may be provided to support initiatives that assist older Australians who are experiencing barriers to accessing quality aged care.

In particular, the provision supports activities aimed at improving access for people who are sick or are diverse individuals. ‘Diverse individuals’ is to be considered in reference to the Note at section 25(4) of the Act, and would include individuals living with dementia, older individuals from culturally and linguistically diverse backgrounds, and Aboriginal and Torres Strait Islander individuals.

Subsection (4) clarifies that financial assistance may be provided to assist the Commonwealth to implement an efficient and functional aged care system that keeps Australians ageing well. This provision has several sub-components.

Paragraph (a) covers support in prevention, resilience, and early intervention. This support is to enable continuity of care, improve registered provider resilience and interventions in issues faced by registered providers, or improve workforce resilience. The reference to ‘emergency scenario’ should be read in its ordinary sense, and could include circumstances such as pandemic, natural disaster, or registered provider collapse and unplanned cessation of care to individuals. Clarifying the meaning of ‘emergency scenario’ allows for consistency and certainty for decision makers when applying the provision.

Paragraph (b) covers activities that improve fairness, integration, access, service quality, and support for older people across the health and aged care system. For example, this can be by strengthening sector capability, supporting individuals eligible for aged care, enabling digital and technology-based services, promoting informed decision‑making, preparing Australians for ageing, and advancing reforms to maintain medical and aged care services.

Paragraph (c) covers innovation, research, data development, and modelling projects to inform Government and the aged care sector about the aged system, as well as the delivery of aged care policy, national strategies and action plans to improve outcomes for older Australians. Examples of a national strategies and action plans includes the National Medicine Policy (2022) and the National Asthma Strategy (2018).

Paragraph (d) provides for activities involving research, data development, modelling, and innovation that link care outcomes across the aged care and broader care systems, improve transparency through better metrics and data capabilities, and provide insights to government and the aged care sector on issues related to ageing and aged care.

Part 6—Chapter 8 amendments

Aged Care Rules 2025

Item 38—Subparagraph 280-10(1)(e)(ii)

This is a consequential amendment to update the name of the “pension loans scheme” under Division 4 of Part 3.12 of the Social Security Act 1991 to “home equity access scheme”.

Item 39—At the end of subsection 285A-13(2)

This item inserts new paragraph (d) which provides that if an individual’s income tested fee is worked out to less than $1, this amendment rounds it down to zero.

Item 40—Subsection 285A-13(4)

This is intended to waive an individual’s income tested fee from the period of their start day until the day they are informed of their income tested fee if they have not been informed of it within six months after they begin receiving care. This amendment also provides for clearer subheadings to note the circumstances in which the provision applies by inserting the subheading “Registered provider not informed of individual's income tested fee before individual ceases services”.

Item 41—At the end of subsection 285A-14(5)

This amendment introduces a rounding down calculation to an individual’s means tested care fee, wherein if an individual’s means tested care fee is worked out to less than $1, it will be rounded down to zero.

Item 42—Section 285A-14(7)

This amendment is intended to waive an individual’s means tested care fee from the period of their start day until the day they are informed of their means tested care fee if they have not been informed of it within six months after they begin receiving care. This amendment also provides for clearer subheadings to note the circumstances in which the provision applies by inserting the subheading “Registered provider not informed of individual's means tested care fee before individual ceases services”.

Part 7—Chapter 9 amendments

Aged Care Rules 2025

Item 43—Section 287-‑103A

This amendment repeals section 287-103A and substitutes a new section that is written in a manner that is better aligned to the current legislative framework.  The new section makes clear the circumstances in which interest is paid, with reference to the amended definition of refunding event.

The revised section 287-103A provides greater clarity with respect to the calculation of interest where a refund period applies and where a refund day applies, by separating the circumstances.

The amendment also clarifies the calculation and payment of interest where the individual has died, and the refund is made after the prescribed 14-day refund period. The current application of section 287-103A does not define what interest is payable if the refund is made after the 14-day refund period in this situation. From the inception of the Act, the intention has been to ensure interest is payable in same manner as was previously applied under the Aged Care Act 1997 and Fees and Payments Principles 2014 (No2). That is, a higher rate of interest is calculated and is payable if a registered provider fails to refund an accommodation bond balance within the legislated refund period, in line with their obligations under the Act.

Item 44—Subsection 287-‑155(2)

This amendment replaces the subsection with a new subsection that references the revised definition of the below threshold rate. The amendment does not change the outcome but is written in a manner that is better aligned to the new legislative framework.

Item 45—Subsection 290-25(7)

This item is a technical amendment that omits “that is 28 days after the day” to clarify that the decision time period should not be extended by an additional 28 days for each request for further information from the Pricing Authority.

Item 46—Section 311-‑5 (heading)

This technical amendment inserts the word “balances” after the word “deposit” to provide more clarity and put beyond doubt that the subsequent provision relates to the refund of a refundable deposit balance.

Item 47—Section 311-‑5

This technical amendment Omits “(1)” from section 311-5 as there are no other subsections.

Item 48—Sections 313-5 and 313-10

This amendment repeals sections 313-5 and 313-10 and substitutes new sections that are written in a manner that is better aligned to the current legislative framework.

The revised section 313-5 further clarifies the circumstances in which interest is paid.  The circumstances have not changed as a result of this amendment.              

The revised section 313-10 makes clear the calculation of interest on the refund of a refundable deposit, in various situations, with reference to the amended definition of refunding event.

The amendment provides greater clarity with respect to the calculation of interest where a refund period applies and where a refund day applies, by separating the circumstances.

The amendment also clarifies the calculation and payment of interest where the individual has died, and the refund is made after the prescribed 14-day refund period.  The current application of section 313-10 does not define what interest is payable if the refund is made after the 14-day refund period in this situation. From the inception of the Act, the intention has been to ensure interest is payable in same manner as was previously applied under the Aged Care Act 1997 and Fees and Payments Principles 2014 (No2). That is, a higher rate of interest is calculated and is payable if a registered provider fails to refund a refundable deposit balance within the legislated refund period, in line with their obligations under the Act.

Part 8—Chapter 10 amendments

Aged Care Rules 2025

Item 49—Paragraphs 314-10(3)(b), (4)(b) and (5)(c)

This item is a technical amendment that omits the reference to subsection (11) and replaces it with subsection (12), which is inserted by Item 50 of this Instrument below.

Item 50—At the end of section 314-10

This item inserts new subsection (12) to provide that if an individual in the post-2014 home contribution class (No Worse Off Principle Class) has an income tested care fee of under $1, their means testing category is 0%, and therefore their individual contribution rate is zero. Under the Aged Care Act 1997, if an individual’s income tested care fee was under $1, it would be rounded down to 0, achieving the same effect. This provision aims to explicitly replicate this.

Item 51—Paragraphs 314-15(5)(c) and (d)

This item repeals and substitutes paragraphs 314-15(5)(c) and (d).

The purpose of section 314-15 is to set out the period for determining the contribution rate for an individual for each means testing category.

Further, subsection 314-15(5) sets out the circumstances where the System Governor can request information from a person. Subparagraph 314-15(5)(a) sets 3 days to provide the information to the System Governor.

New paragraph 314-15(5)(c) then provides for where the System Governor makes one or more requests for the required information from the individual under subsection 343(1) of the Act.

New paragraph 314-15(5)(d) applies where the individual provides the required information to the System Governor within 43 days After this, the System Governor will then have 28 days to determine the individual’s means testing class.

The purpose of this amendment is to ensure the system operates consistently with the legislation. The amendment to allow the individual to have 43 days to provide the requested information will better align with the current system timeframes that includes 3 days to initial request, 21 days for first request, 14 days for second request and 8 days for postage.

Item 52—Subsection 314-55(1) (step 4 of the method statement)

This item is a technical amendment to subsection 314-55(1) which is required due to amendments to section 314-75. It amends step 4 of the method statement for calculating amounts of percentages for the means testing categories independence and everyday living. The amendment replaces “section 314‑75” with “subsection 314‑75(1)” due to amendments to the input contribution rate under section 314-75.

Item 53—Subsection 314-55(2) (method statement)

This item substitutes and repeals subsection 314-55(2) (method statement). The item sets out the steps for calculating the percentage rates for the means testing category independence and everyday living for individuals in the means testing classes part pensioner and seniors health card holder in the post 2014 home contribution class who are not continuing home care recipients under the old Act.

This new method statement is as follows:

• Step 1. Work out the income reduction amount under section 314-60.
• Step 2. Work out the maximum reduction amount under section 314-70.
• Step 3. Work out the input contribution rate under subsection 314-75(2).

• Step 4. Work out the amount of the percentage:
  • for the means testing category independence—under subsection 314-80(2)
  • for the means testing category everyday living—under subsection 314-85(2).

The purpose of this amendment is to ensure that for individuals in the post-2014 home contribution class the method for calculating the individual contribution rate is based on the income reduction amount only and to remove the asset reduction amount.

Item 54—Section 314-65 (method statement)

This item sets out a clearer method statement for working out the assets reduction amount:

• Step 1: Work out the value of the individual’s assets in accordance with:
  • Division 1 of Part 3.12 of the Social Security Act; and
  • if the individual is a member of a couple—point 1064-G2 of Module G of Pension Rate Calculator A.
• Step 2: Work out the amount that would be worked out as the individual’s assets value limit under point 1064-G3 of Module G of Pension Rate Calculator A.
• Step 3: Subtract the amount under Step 2 from the amount under Step 1 and round down to the nearest multiple of $250.
• Step 4: Multiply the amount under Step 3 by 0.078 and round to the nearest dollar.

The result is the assets reduction amount.

These amendments are required to clearly align the rules with how the value of assets are calculated under the Social Security Act 1991. For an individual who is a member of a couple, the value of the individual’s assets is taken to be 50% of the value of the assets of the couple as provided for by Point 1064-G2 in Module G of Pension Rate Calculator A in the Social Security Act 1991. In addition, the value of assets is rounded down to the nearest multiple of $250, similar to point 1064-G7 in Module G of Pension Rate Calculator A in the Social Security Act 1991.

Item 55—Section 314‑-75

This item repeals and substitutes the method for working out the input contribution rate as follows:

• Step 1: Divide the greater of the income reduction amount and the assets reduction amount by the maximum reduction amount.
• Step 2: Multiply the Step 1 amount by 100.

The result is the input contribution rate.

New subsection 314-75(2) sets out the method for individuals covered by subsection 314-10(3), that is individuals in the post 2014 home contribution class who were not continuing home care recipients under the old Act.  This method is to:

• Step 1: Divide the income reduction amount by the maximum reduction amount.
• Step 2: Multiply the Step 1 amount by 100.

The result is the input contribution rate.

This is a technical amendment that is required due to amendments to subsection 314-55(2). The individual contribution rate method statement for the post-2014 home contribution class is amended to only provide for an income reduction. The method statement for calculating the input contribution rate for the post-2014 home contribution class also requires amendment to refer only to the income reduction amount, and not the asset reduction amount.

Item 56—Subsection 314A-5(2)

This item makes an amendment to remove the 28 day period where the System Governor requests specified information from the individual under subsection 343(1) of the Act. The amendment substitutes a 43 day period, from the day the System Governor first requests the specified information from the individual under subsection 343(1) of the Act (whether or not the System Governor makes a subsequent request for the specified information from the individual).

The purpose of this amendment is to ensure information and communication technology systems and operational practices at Services Australia operate consistently with the legislation. The amendment to allow the individual to have 43 days to provide the requested information will better align with the current system timeframes that includes 3 days to initial request, 21 days for first request, 14 days for second request and 8 days for postage.

Item 57—Section 337-5

This item replaces “251” (wherever occurring), with “257”. This is a technical amendment to clarify the cross-referencing to claims for residential care subsidy under section 257 of the Act.

Part 9—Chapter 11 amendments

Aged Care Rules 2025

Item 58—Subsection 343A-5(6)

This item changes “for the assessor to perform classification assessments and classification reassessments” to “when necessary for the needs assessor to perform their functions and exercise their powers under the Act”. This amendment is required to remove all doubt that a needs assessor should be given access to the approved residential care home when performing all aspects of their role, not just in regard to classification assessments and reassessments.

Part 10—Indexation amendments

Aged Care Rules 2025

Item 59—Section 302-15 (at the end of the table)

Item 1 provides for a new item (item 2) to be inserted in the table to specify the DAP index number for 20 March 2026.

Item 60—Amendments of listed provisions—indexation of amounts

Item 2 provides for the indexation of amounts for the following:

• Items 1: the lifetime cap, which limits the means tested amount payable by individuals in residential care if they are not a member of a grand-parented class;
• Item 2: the lifetime cap, which limits the means tested amount payable for an individual in the post-2014 home contribution class or the post-2014 residential contribution class;
• Items 3-5: the ‘applicable amount’, which is used to calculate the residential care accommodation supplement and the residential care respite supplement for a care recipient;
• Item 6-8: the ‘applicable amount’, which is used to calculate the transitional accommodation supplement of individuals in the pre-2014 residential contribution class who are eligible for transitional accommodation supplement under section 37 of the Aged Care (Transitional Provisions) Principles 2014;
• Item 9: the pensioner supplement, for individuals in the pre-2014 residential contribution class who are eligible for transitional accommodation supplement under section 37 of the Aged Care (Transitional Provisions) Principles 2014;
• Item 10: the maximum non-clinical care contribution, which limits the means tested amount for individuals in residential care if they are not a member of a grand-parented class;
• Items 11-12: the annual and lifetime caps, which limit the means tested amount payable by individuals in residential care that are in the post-2014 home contribution class or the post-2014 residential contribution class;
• Item 13-16: the income of single persons and illness separated couples thresholds, which apply in the income test component of the means assessment 319 of the Act, or 319-15 for individuals in pre-2014 residential contribution class, or 319-20 for individuals in post-2014 residential contribution class;
• Items 17-21: the asset thresholds, which apply in the asset test component of the means assessment 319 of the Act, or 319-20 for individuals in post-2014 residential contribution class;
• Item 22: the cap on the maximum home value, which is included in the asset test component of the means assessment 319 of the Act, or 319-20 for individuals in post-2014 residential contribution class.

Where the daily accommodation payment indexation applies, registered providers will only index daily accommodation payment amounts on the 20th of March and the 20th of September. The first time daily accommodation payments are indexed will be 20 March 2026. Providers will use the index numbers in this section to calculate the indexation factor for the purpose of applying daily accommodation payment indexation. Registered providers cannot use their own indexation rate.

Part 11—Transitional matters

Aged Care (Consequential and Transitional Provisions) Rules 2025

Item 61—Subsection 124(2)

This item provides a transitional measure for the maximum amount of the care minutes supplement to be paid in respect of the provision of ongoing residential aged care to individuals. This captures approved residential care homes on days during the April to June 2026 quarter.

This amendment addresses how the transition to the new Act impacted pre-existing reporting of care minutes in the October to December 2025 quarter. Certain residential aged care homes—specifically those relying on the labour of nuns—operate under workforce arrangements not reflected in standard staffing metrics used for Care Minutes Supplement calculations due to the operation of the old Act. For the April–June 2026 quarter only, these homes need to be listed in the Rules to receive the highest rate of the supplement.

Paragraph 124(2)(a) provides that registered providers should be dealt with in the ordinary manner in respect of a home under the Act unless the home is listed in the table under paragraph 124(2)(b). This is a targeted, time‑limited amendment necessary to ensure equitable funding treatment. Future quarters will be calculated using the matrix in section 239-35 of the Rules.

Schedule 2—Amendments commencing 23 March 2026

Aged Care Rules 2025

Item 1—Section 5-5 (definition of Aged Care Assessment Manual)

This amendment updates the date that the Aged Care Assessment Manual is incorporated by reference into the Rules. The new date is 23 March 2026, and the Aged Care Assessment Manual is available on the department’s website.

The Manual is being updated as a result of information technology changes and to provide clarifications to administrative processes supporting aged care needs assessments.

Item 2—Section 5-5 (note to definition of Aged Care Assessment Manual)

This amendment aligns with Item 1 of this Schedule, which updates the date that the Aged Care Assessment Manual is incorporated by reference into the Rules.

This Item updates the Note to reflect this change.

Schedule 3—Amendments commencing 1 April 2026—registered nurses and rounding

Aged Care Rules 2025

Item 1—Section 175-10

This section has been amended to insert new subsection 175-10(1) for the purposes of cross-referencing and due to the insertion of new subsection 175-10(2).

Item 2—Paragraph 175-10(a)

This paragraph has been amended to replace “a residential” with “an approved residential”. This is a technical amendment to align with how the existing legislative scheme refers to “an approved residential care home” in full in the first instance.

Item 3—At the end of section 175-10

This is a technical amendment to insert subsection 175-10(2), which clarifies that this Division also provides for the revocation of exemptions relating to the registered nurse obligation.

Item 4—Subsection 175-15(1)

This amendment replaces “provides” with “delivers” to align with the language used in the rest of the legislative scheme.

Item 5—Subsection 175-15(2)

This subsection provides that an application for exemption from the registered nurse obligation under subsection 175(1) of the Act for an approved residential care home must be in the approved form. Approved forms are provided for under section 584 of the Act.

Item 6—Section 175-20

This section is repealed as requests for further information or documents for decisions on applications, claims or requests are provided for under section 588 of the Act.  

Item 7—Subsection 175-‑25(1) (heading)

This heading is amended to clarify that subsection 175-25(1) provides for the criteria for granting an exemption from the registered nurse obligation for approved residential care homes at which funded aged care services are not delivered only under the Multi-Purpose Service Program.

Item 8—Subsection 175-‑25(1)

This subsection provides the criteria for granting an exemption from the registered nurse obligation in subsection 175(1) of the Act for an approved residential care home, other than a home at which the provider delivers funded aged care services only as a Multi-Purpose Service Program provider. These arrangements mirror the exemption arrangements that already apply to mainstream residential aged care homes. This ensures a consistent approach to exemptions across all homes and that the same consumer protections apply regardless of the type of residential care home where an older person chooses to access services.

Item 9—Paragraphs 175-‑25(1)(b) and (c)

These paragraphs are amended to omit “approved residential care”. This is a technical amendment to align with a drafting convention used throughout the legislative scheme. An “approved residential care home” is mentioned in full in the first instance and is referred to as “the home” in every subsequent instance.

Item 10—Paragraph 175-25(1)(d)

This paragraph is amended to refer to “this instrument” and “the home”. This is a technical amendment to align with drafting conventions used throughout the legislative scheme. When referring to a section within the rules, a reference to “this instrument” is usually included. An “approved residential care home” is mentioned in full in the first instance and is referred to as “the home” in every subsequent instance.

Item 11—Subsection 175-‑25(1)

This subsection outlines the criteria for granting an exemption from the registered nurse obligation in subsection 175(1) of the Act for an approved residential care home at which funded aged care services are delivered only under the Multi-Purpose Service Program. The System Governor may grant the exemption only if:

• the home is located in the 2023 Modified Monash (MM) category known as MM 5, MM 6 or MM7; and
• no more than 30 residential care places for the home are in effect under section 97-5 of the rules on the day of the System Governor’s decision; and
• the System Governor is satisfied that the provider has taken reasonable steps to ensure that the clinical care needs of the individuals in the home will be met during the period for which the exemption is in force; and
• for an application made on or after 1 November 2026—the registered provider has given to the System Governor the reports required under section 166-855 of the rules for the home for each calendar month beginning on or after 1 October 2026.

Item 12—Subparagraph 175-‑25(6)(a)(ii)

This subparagraph clarifies that a condition to apply to an exemption is that the registered provider must give to the System Governor a response to a request by the System Governor under section 588 of the Act. This amendment is required due to the amendment to repeal of subsection 175-20 of rules and subsequent reliance on section 588 of the Act for the System Governor to request further information.

Item 13—Paragraph 175-‑30(2)(c)

This paragraph provides that a notice of a decision to refuse to grant an exemption from the registered nurse obligation under subsection 175(1) of the Act must state how the registered provider may apply for reconsideration of the decision. This aligns with drafting convention for other notice of decision requirements in the rules which must state how an affected entity may apply for reconsideration of a decision.

Item 14—Section 175-‑50 (heading)

This heading confirms that this section provides for the grounds of revocation on the System Governor’s initiative. This aligns with drafting convention in the rest of the legislative scheme when references are made to revocations being on the System Governor’s initiative.

This Subdivision is made in reliance on the ancillary ‘necessary and convenient’ limb of the rule-making power in paragraph 602(1)(b) of the Act. The revocation of exemption provisions support the existing operational process for granting exemptions under “Subdivision B of Part 6—Obligations relating to aged care workers etc”.

Subdivision C complements the process for granting exemptions by prescribing the process for revocation on request and revocation on the System Governor’s initiative, and the requirements for giving a notice of the decision.

Item 15—Subsection 175-50(1)

This section is amended to change “a residential” to “an approved residential”. This is a technical amendment to align with a drafting convention used throughout the legislative scheme. An “approved residential care home” is mentioned in full in the first instance.

Item 16—Paragraph 175-50(1)(e)

This paragraph is amended to provide for two separate paragraphs as grounds for revocation of an exemption to the registered nurse obligation under subsection 175(1) of the Act on the System Governor’s initiative.

Paragraph 175-50(1)(e) provides a ground for revoking an exemption for providers which are not Multi-Purpose Service Program providers. For a home other than a home at which a registered provider delivers funded aged care services only as a Multi-Purpose Service Program provider, the exemption may be revoked if the System Governor becomes aware that there are more than 30 operational beds in the home.

Paragraph 175-50(1)(f) provides a ground for revoking an exemption for Multi-Purpose Service Program provider. In relation to a home at which a registered provider delivers funded aged care services only under the Multi-Purpose Service Program, the exemption may be revoked if the System Governor becomes aware that there are more than 30 residential care places for the home in effect under section 97-5 of the Rules.

Item 17—Subsections 175-50(2) to (4)

This amendment repeals subsections 175-50(2) to (4) and replaces it with new provisions requiring the System Governor to give written notice to a registered provider that the System Governor is considering revoking an exemption.

Subsection 175-50(3) provides that the notice must:

• set out the reasons why the System Governor is considering revoking the exemption, and what the effect of the revocation would be; and
• invite the provider to make a submission, in writing, to the System Governor in relation to the matter within the period specified in the notice (which must not be less than 28 days after giving the notice); and
• inform the provider that the System Governor may decide to revoke the exemption if no submission is made within the specified period; or after considering any submission made by the provider within the specified period.

Subsection 175-50(4) provides that the System Governor may also request in the notice under subsection 175-50(2) information specified in the notice to assist the System Governor to decide whether to revoke the exemption. A note under subsection 175-50(4) provides that the provider is not obliged to give the information.

Subsection 175-50(5) provides that the System Governor may by written notice request further information in response to a submission by the provider to the original notice to assist the System Governor to decide whether to revoke the exemption. Subsection 175-50(6) provides that the System Governor may extend the period for the provider to give the information.

Section 175-50(7) provides that the System Governor must:

• consider any submission made in accordance with the invitation under paragraph 175-50(3)(b) and any further information given in accordance with a request under subsection 175-50(4) or 175-50(5); and
• make a decision whether to revoke the exemption within 28 days from:
  • if no submission is made in accordance with the invitation in the notice under paragraph 175-50(3)(b)—the end of the period specified in the notice (including that period as extended (if applicable) under subsection 175-50(6)); or
  • the later of:
    • if a submission is made in accordance with the invitation in the notice under paragraph 175-50(3)(b) and no further information is requested under subsection 175-50(5)—the day the submission is made; and
    • if a submission is made in accordance with the invitation in the notice under paragraph 175-50(3)(b) and further information is requested under subsection 175-50(5)—the day the provider gives the System Governor the further information.

These amendments align the process for revoking an exemption to the registered nurse obligation under subsection 175(1) of the Act with the processes used for revoking other statuses or decisions used throughout the Act and this instrument.

Item 18—Section 175-55

This section is amended to refer to “section 175-50 of this instrument” and to omit “approved residential”. This is a technical amendment to align with drafting conventions used throughout the legislative scheme. When referring to a section within the rules, a reference to “this instrument” is usually included. An “approved residential care home” is mentioned in full in the first instance and is referred to as “the home” in every subsequent instance.

Item 19—Paragraph 175-55(c)

This paragraph provides that a notice of a decision to revoke an exemption from the registered nurse obligation under subsection 175(1) of the Act must state how the registered provider may apply for reconsideration of the decision. This aligns with drafting convention for other notice of decision requirements in the Rules which must state how an affected entity may apply for reconsideration of a decision.

Item 20—Subsection 194-5(2A)

This is a technical amendment that includes rounding to two decimal places and that 0.5 cents will result in a rounding up, to ensure that the calculation of 60% of a base individual amount is rounded correctly. This will ensure that an individual receiving an interim place under section 92A of the Act will have the correct amount in their available home support account.

Item 21—Subsection 196-25(2) and 196-30(2)

This is a technical amendment that omits “up” and includes that 0.5 cents will result in a rounding up, to ensure that the veterans’ supplement and the dementia and cognition supplement is rounded to the nearest cent. This is consistent with rounding conventions applied across the rules for other supplements amounts.

Schedule 4—Amendments commencing 1 July 2026—registered nurses

Aged Care Rules 2025

Item 1—Section 175-5

This section provides an exception to the registered nurse requirement for the Transition Care Program for the purposes of paragraph 175(2)(b) of the Act. This amendment ensures the registered nurse obligation under subsection 175(1) of the Act applies to the Multi-Purpose Service Program from 1 July 2026.

Schedule 5—Amendments commencing 1 October 2026—registered nurses

Aged Care Rules 2025

Item 1—Subsection 166-850(2)

This section is amended to provide that Subdivision L in Division 3 Part 2 of Chapter 5 of the Rules does not apply to the specialist aged care programs:

• the Commonwealth Home Support Program;
• the National Aboriginal and Torres Strait Islander Flexible Aged Care Program;
• Transition Care Program.

This amendment ensures the registered nurse reporting obligations in this Subdivision apply to the Multi-Purpose Service Program from 1 October 2026. To clarify, the registered nurse obligation under subsection 175(1) of the Act will apply to Multi-Purpose Service Program providers from 1 July 2026. However, the accompanying reporting obligation under will not apply to Multi-Purpose Service Program providers until 1 October 2026.

Schedule 6—Amendments taken to have commenced 1 November 2025

Aged Care (Consequential and Transitional Provisions) Rules 2025

Item 1—After section 96 

This provision adds a new section 96A that removes the requirement of providing a Care Minutes Performance Statement for registered providers with a reporting period which ends 31 December 2025. Due to the commencement of the Act on 1 November, this requirement would apply to registered providers for a reporting period from 1 November to 31 December 2025. Whilst this applies retrospectively, it removes an obligation and is not detrimental to any provider or individual.

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Aged Care Legislation Amendment (March Indexation and Other Measures) Rules 2026

This Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Instrument

This Instrument makes amendments to the Aged Care Rules 2025 (the Rules) under the Aged Care Act 2024 (the Act), and to the Aged Care (Consequential and Transitional Provisions) Rules 2025 under the Aged Care (Consequential and Transitional Provisions) Act 2025 to:

         implement the March 2026 indexation round across thresholds, caps and subsidy related amounts;

         revise interest arrangements for refunds of refundable deposits and accommodation bonds;

         refine specialised status determinations (including revocation circumstances and notice requirements);

         clarify assessment and means testing processes (including a 43-day period for providing requested information);

         update transparency requirements in service agreements;

Human rights implications

This instrument engages the following rights:

         The right to social security in article 9 of the International Covenant on Economic, Social and Cultural Rights (ICESCR) and article 28(2) of the Convention on the Rights of Persons with Disabilities (CRPD).

         The right to the highest attainable standard of health in article 12 of the ICESCR and article 25 of the CRPD. 

         The right to equality and non-discrimination in article 2(2) of the ICESCR and articles 2, 16 and 26 of the International Covenant on Civil and Political Rights (ICCPR) and Article 5 of the CRPD.  

         Rights of Persons with Disabilities (CRPD, especially Articles 25 – Health; 5 – Equality and non-discrimination).

Assessment of Compatibility 

Right to social security

The right to social security in Article 9 of the ICESCR and Article 28(2) of the CRPD protects access to social support systems that assist individuals to secure an adequate standard of living and to participate fully in the community. The UN Committee has stated that the right to social security is of central importance in guaranteeing human dignity for all persons when they are faced with circumstances that deprive them of their capacity to fully realise their rights under the ICESCR. The UN Committee has stated that the right to social security, through its redistributive character, plays an important role in poverty reduction and alleviation. It has also stated that social security prevents social exclusion and promotes social inclusion. 

This instrument engages the right to social security as it adjusts means testing mechanisms and indexation so that fees and thresholds remain aligned with economic conditions, and clarifies method statements for income and asset reductions, contribution rates, and rounding. It also sets a uniform 43-day period for individuals to provide requested information to determine their individual contribution rate and rounds small means-tested fees down to zero in specified cases.

Indexation, clear calculation methods and reasonable procedural timeframes support accurate, predictable entitlements and liabilities. Rounding down nominal amounts prevents immaterial debts, protecting individuals from disproportionate financial impacts. Overall, the amendments support effective access to funded aged care services and are compatible with the right to social security.

Right to the highest attainable standard of health

The right to the highest attainable standard of physical and mental health, protected by Article 12 of the ICESCR and Article 25 of the CRPD, encompasses timely and appropriate access to health-related services that enable individuals to maintain wellbeing, functional capacity, and independence.  

Several measures in this instrument promote safe, quality care:

         the subdivision clarifying circumstances and notice requirements for revocation of specialised residential care status supports service integrity for Aboriginal and Torres Strait Islander and homeless residents;

         the advance payment estimation method promotes continuity of funding for delivered care; and

         phasing registered nurse obligations (with tailored criteria for Multi-Purpose Service Program providers and a staged reporting start) supports safe clinical oversight in rural and remote contexts.

On balance, the instrument promotes and is compatible with the right to health.

Right to equality and non-discrimination

The rights to equality and non-discrimination are contained in Articles 2 and 26 of the ICCPR and article 2(2) of the ICESCR. The rights to equality and non-discrimination provide that all persons are equal before the law and entitled, without any discrimination, to the equal protection of the law. Non-discrimination is an integral part of the principle of equality. It ensures that no one is denied their rights because of factors such as race, colour, sex, language, religion, political or other opinion, national or social origin, property or birth.

Revoking specialised status from an approved residential care home engages the right to equality and non-discrimination because such status classifications, whether for people experiencing homelessness or for Aboriginal and Torres Strait Islander people, are designed to ensure equitable access to funded aged care services for groups with distinct and often heightened needs. Where a change in specialised status affects the cohort an approved residential care home is funded and structured to support, there is a risk that residents belonging to these vulnerable groups could experience reduced access to culturally safe, appropriate, and tailored care. Any process that alters or removes specialised status must therefore be exercised in a way that is fair, transparent, and proportionate to avoid indirect discrimination or unequal treatment in practice.

The proposed amendment, which enables the revocation of specialised status when switching between homeless and Aboriginal and Torres Strait Islander people designations (for example) or when the System Governor determines that the approved residential care home no longer meets the relevant criteria under sections 243-10 and 243-15 of the Rules, interacts with this right by imposing consequences that may affect both service providers and the people they serve. Incorporating procedural safeguards, such as the right to receive a notice of intention to revoke, an opportunity to respond, a formal notice of revocation, and access to reconsideration and appeal (noting that review mechanisms for revocation decisions already exist under section 557, item 21A of the Act), helps ensure that decisions are not arbitrary and that providers can challenge determinations that may have equality implications for residents. These safeguards support the principle that any limitation on specialised status must be reasonable, evidence-based, and undertaken in a manner that does not result in discriminatory outcomes for the groups the specialised status is intended to protect.

These measures promote equality by directing specialised support to individuals who need it. Where specialised status is revoked, procedural safeguards (reasons, reconsideration information) mitigate any risk of arbitrary or unequal treatment. The instrument is compatible with the right to equality and non-discrimination.

Rights of persons with disabilities

The rights of persons with disabilities, as protected under the CRPD, include the right to equality and non-discrimination (Article 5) and the right to the highest attainable standard of health without discrimination on the basis of disability (Article 25). These rights recognise that persons with disabilities must have full and equal enjoyment of all human rights and fundamental freedoms, including access to the supports, services and environments necessary to live independently and participate fully in the community. The CRPD Committee has emphasised that disability is an evolving concept and that the rights of persons with disabilities extend to ensuring accessibility, reasonable accommodation, inclusive service systems, and safeguards against exclusion or unequal treatment. The Committee has also noted that health and care systems must be designed and administered in a way that supports dignity, autonomy, and meaningful participation for persons with disabilities.

Aged care recipients include many people with disability. Measures that ensure stable funding (advance payment estimation), maintain clinical oversight (registered nurse obligations and tailored criteria for Multi-Purpose Service Program providers), and clarify specialised services for cohorts with complex needs (e.g., homelessness) help ensure accessible, appropriate care.

By improving the clarity and continuity of services and reinforcing clinical safety, the amendments promote equal access to quality care for people with disability. The instrument is compatible with CRPD rights.

Conclusion

The Aged Care Legislation Amendment (March Indexation and Other Measures) Rules 2026 promotes the rights to health and social security, support equality and non-discrimination. To the extent any rights are limited (e.g., through procedural timelines or status revocation), those limitations are reasonable, necessary, and proportionate to the legitimate objectives of safety, integrity, and efficient administration of the aged care system. Accordingly, this instrument is compatible with human rights.

Sam Rae

Minister for Aged Care and Seniors