Strengthening provider governance in aged care

We’re changing provider governance arrangements to improve the quality and transparency of aged care services. From 1 December 2022, these changes will apply to Australian Government-funded aged care providers of residential care, home care, and flexible care.

Changes to provider governance from 1 December 2022

Following recommendations made in 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.

Who the provider governance changes apply to

Changes to provider governance apply to approved providers of:

  • residential care
  • home care
  • flexible care.

These changes do not apply to providers who:

  • operate under a grant agreement, such as:
    • Home Support Program (CHSP)
    • National Aboriginal and Torres Strait Islander Flexible Aged Care Program (NATSIFACP).

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

The federal Aged Care and Other Legislation Amendment (Royal Commission Response) Act 2022 includes these measures. 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 access to information on approved providers’ operations.

Greater transparency rebuilds trust in the sector. It helps older people, their families, and carers make informed decisions about their care and in selecting the right provider.

Residential care, home care and transition care providers need to report additional information on their operations to the department annually. See the Residential, home care and transition care provider transparency fact sheet for more information on the requirements.

Aged care providers will have the opportunity to preview their individual provider finances and operations information before it is published on My Aged Care from February 2024.

Register for the publishing provider reporting webinar, 28 November 2pm, on how finances and operations information will be made available on My Aged Care

Reporting requirements

The reporting period begins on 1 July and ends on 30 June the next year.

The information must be submitted to the Department by 31 October each year.

The first reporting period is 1 July 2022 to 30 June 2023 and is due  by 31 October 2023.

Residential and home care providers

Residential care and home care providers must give:

  • a statement signed by the governing body stating whether the provider did or did not comply with its duties under the aged care legislation and:
    • each duty 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
  • diversity information including:
    • whether the providers’ governing body includes representatives from First Nations, disability, gender diverse and cultural and linguistically diverse communities (or any other diversity demographic)
    • initiatives to support a diverse and inclusive environment for care recipients and staff at each service.
  • the membership of governing body including:
    • whether the provider has a majority of independent non-executive members and a person with experience in providing clinical care on their governing body or
    • has exemption from this responsibility.

Residential care and home care providers need to submit the additional information online through a Provider Operations Collection Form (Collection Form).

The Collection Form is available through the Government Provider Management System (GPMS).

For more information on GPMS please refer to the GPMS webpage where there are several resources to support you including:

Links and guidance documents on how to use the Collection Form are listed in the resources and more information section below. 

Transition care providers

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.

Transition Care Providers will give this information through the existing Transition Care Annual Accountability Report.

Resources and more information

Provider Governance Section

Contact the Provider Governance Section for more information about strengthening governance in aged care.
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