Strengthening provider governance in aged care

Changes to provider governance from 1 December 2022

Following the recommendations of the Final Report of the Royal Commission into Aged Care Quality and Safety, we are changing provider governance arrangements. Changes are to improve the quality and transparency of aged care services.

Effective governance is vital in delivering safe, quality aged care.

Providers will strengthen their governance through changes to:

• governing body membership and advisory bodies
• reporting of provider circumstances
• procedures for provider key personnel.

To develop these changes, we consulted with:

• older people and their representatives
• peak bodies
• aged care providers.

To learn more see the Strengthening provider governance webpage of the Aged Care Quality and Safety Commission website.

These measures are included in the federal Aged Care and Other Legislation Amendment (Royal Commission Response) Act 2022. They address recommendations 88 to 90 of the Royal Commission into Aged Care Quality and Safety.

These reforms seek to improve the governance systems of approved providers of Commonwealth-funded aged care.

Greater transparency about aged care providers and services

The Royal Commission into Aged Care Quality and Safety recommended that older people have better information access about approved providers’ operations.

Providing greater transparency helps to rebuild trust in the sector. It also supports older people to make an informed decision about their care and to find a provider that is right for them.

From 31 October 2023, we will need extra information from approved providers about their operations.

We plan to publish more information about individual provider operations on the My Aged Care website from January 2024 .

The draft legislation enabling the department to publish certain information about the operations of providers of residential care and home care was available for public consultation from 2 May to 16 May 2022.

See the Residential, home care & transition care provider transparency fact sheet for more information on the requirements.

Residential and home care providers

By 31 October each year, residential care and home care providers must give:

• a statement signed by the governing body stating either that:
  • the provider complied with its duties under the aged care legislation; or
  • the provider did not comply with its duties under the aged care legislation during the period between 1 July and 30 June, and:
    • each duty that the provider failed to comply with
    • whether the non-compliance affected one or more services
    • the reasons why the provider failed to comply
    • actions taken to rectify the non-compliance
    • resolution of the non-compliance.
• the most common kinds of feedback and complaints received by each service
• key improvements made to the service quality
• whether the providers’ governing body includes representatives from First Nations, disability, gender diverse and cultural and linguistically diverse communities (or any other diversity demographic)
• key initiatives implemented to support a diverse and inclusive environment for care recipients and staff at each service. Including whether the providers’ services have policies and procedures for culture, diversity and inclusion, cultural safety, and social activities to support culture, diversity and inclusion
• information about whether the provider:
  • has a majority of independent non-executive members and a person with experience in providing clinical care on their governing body
  • has exemption from this responsibility.

Transition care providers

By 31 October each year, providers of transition care must give:

• the most common kinds of feedback and complaints received by each service
• main improvements made to the service quality.

Resources and more information

• Exposure Draft of the Aged Care Legislation Amendment (Transparency of Information) Principles 2023
• Aged Care Legislation Amendment (Governance and Reporting for Approved Providers) Principles 2022
• Aged Care Quality and Safety Commission - Strengthening provider governance webpage
• Residential, home care & transition care provider transparency