Since March, the RLC has called for a delay to the rollout of the Act and adopt a transitional approach to ensure operators can support clients seamlessly and comply with legal requirements.
In a statement today, the Commonwealth said the decision was made following "careful consideration", with a recommendation to soon be made to the Governor-General, Her Excellency the Honourable Sam Mostyn AC, that she proclaims the commencement of the new Aged Care Act be 1 November 2025.
Minister for Health and Ageing, Mark Butler, said: "We want to make sure that all operational, digital and legislative pieces are in place before the rollout starts."
"This brief deferral allows providers to train their staff, have conversations with their clients, get their IT systems ready, and prepare operations for an orderly transition," he said.
RLC Executive Director Daniel Gannon said the Commonwealth has made the right decision.
"This is much-needed common sense from the Commonwealth," Mr Gannon said.
"This delay by the Commonwealth is welcome news and was always the best, inevitable outcome for older Australians and providers alike.
"It's a big relief for the clients and operators who were feeling anxious over what was a rushed and sloppy approach to a new, modern, and better system.
"The RLC publicly called for this delay, some stakeholders even derided these calls, yet we extend our thanks and appreciation to the Commonwealth for listening and understanding. The consequences of pushing ahead with an impossible deadline could have been irreversible, with serious threats to the short-term viability of the sector.
"Nobody disputes that our country is in desperate need of a new Aged Care Act, especially as Australia grows older and greyer. However, the new system must be handled with care and delivered properly.
"This delay means operators now have additional breathing space to ensure systems are ready to go.
"Pain points around pricing can now be appropriately addressed, while proper guidelines for contract charges, cancellation costs, and travel expenses can be set in stone, so there is no confusion.
"Without this delay, it would have been impossible for operators to establish accurate pricing, and clients would have been denied the opportunity to shop around to find the best and most cost-effective packages for them.
"The RLC is also aware that liquidity ratios will be dropped from 10 per cent down to two per cent. While it's not zero per cent like it should be, these changes won't cripple the industry."
