On 1 November 2025, the Aged Care Act 2024 (Cth) (the Act), which applies to government-funded aged care services, came into operation. The Australian aged care industry entered a new regulatory world – one where the rights of aged care recipients are the primary focus, and where aged care providers must ensure that these rights are both respected and protected.
In the first article of The Aged Care Revolution series, we examine the new governance framework introduced by the Act, focusing on the role, obligations and accountability of 'responsible persons' in ensuring providers uphold the rights of aged care recipients.
The need for reform
In recent times, a groundbreaking Royal Commission is often preceded by a Four Corners episode on the ABC. For aged care, it was the two-part 'Who Cares?' episode that exposed bad actors in the aged care industry and sparked widespread horror and shame. The Royal Commission made 148 recommendations on how to fix the system. It identified that poor governance and accountability at provider and board levels were major contributors to system failures. It recommended stronger oversight by persons having decision making authority or influence over the way in which aged care services are provided. And so, the 'responsible person' found their way into the Act.
Who are responsible persons?
The Act distinguishes between responsible persons employed in government and non-government sectors.
If the registered provider is not a government entity, then a responsible person includes:
- Any person who is responsible for the executive decisions of the registered provider (which includes all members of the governing body of the provider).
- Any other person who has authority or responsibility for (or significant influence over) planning, directing or controlling the activities of the registered provider.
For any registered provider of aged care services (which includes both government and non-government entities), a responsible person will also be:
- Any person who has the responsibility for overall management of the nursing services, and who is a registered nurse.
- Any person who is responsible for the day-to-day operations of an approved residential care home or service delivery branch of the registered provider.
Although the definition of responsible persons, as it applies to government entities, does not specifically refer to persons who make executive decisions or those having responsibility for planning, directing or controlling the activities of the provider, the Act does not exclude these people from being responsible persons if they are responsible for the day-to-day operations of the provider.
What level of responsibility is imposed by the Act?
The Act provides that it is a condition of a provider’s registration that, when it comes to responsible persons (and aged care workers more generally), it must:
- Comply with the worker screening requirements prescribed by the Rules.
- Ensure that aged care workers meet any qualifications and training requirements prescribed by the Rules.
- Ensure that aged care workers are given opportunities to develop their capability to provide funded aged care services.
More specifically, a registered provider is obliged to consider the suitability of its responsible persons at least once every 12 months, and to keep a record of such reviews. Failure to do this is an offence under the Act and attracts a financial penalty.
Higher statutory duties are imposed on those responsible persons in the non-government sector who are on the Board, making executive decisions or who are otherwise responsible for planning, directing or controlling the activities of the registered provider. They must:
- Acquire and maintain knowledge of the statutory requirements that apply to the registered provider.
- Gain an understanding of the nature of the funded aged care services the registered provider delivers and the potential adverse effects that can result to individuals when delivering those services.
- Ensure that the registered provider has available for use, and uses, appropriate resources and processes to manage adverse effects to the health and safety of individuals accessing funded aged care services.
- Ensure that the registered provider has appropriate processes for receiving and considering information regarding incidents and risks and responding in a timely way to that information.
- Ensure that the registered provider has, and implements, processes for complying with its statutory duties.
All responsible persons otherwise have an obligation under the Act to:
- Comply with the Aged Care Code of Conduct.
- Notify the regulator of any changes in their suitability to be a responsible person, such as becoming a bankrupt, being subject to a banning order or an adverse finding by the Regulator.
- Comply with the whistle-blower provisions in the Act where a protected disclosure is made to them.
Implications for you
A failure to meet these obligations exposes a responsible person to individual financial penalty. Likewise, if a registered provider does not provide training to responsible persons so that they understand what is required, the provider is exposed to a financial penalty. These are ongoing obligations and require regular attention.
