In October 2021, during a family visit at the Morrie Evans Aged Care Facility, a 93-year-old resident fell from a malfunctioning reclining chair while staff were moving it. She suffered fractures to her ribs and spine, developed a chest infection in the days that followed, and tragically died a week later.

It was a devastating loss for the woman’s family. But what makes this event even harder to accept is that it was preventable.

According to WorkSafe’s Acting Chief of Health and Safety, Barb Hill, even basic safety measures – like a simple assessment system – could have stopped the incident from happening.

Following sentencing in Melbourne County Court late last year, provider Benalla Health was fined $230,000 after pleading guilty to failing to ensure people in its care were not exposed to health and safety risks.

This distressing case – and others like it – are part of the reason aged care reform is raising expectations around safety, quality, and accountability through the new Aged Care Act.

 

Reforms and Responsibility: The Implications of the New Aged Care Act

If you’re a registered aged care provider still getting to grips with the changes, or a broker looking to support your clients through the reforms, here’s a quick rundown of some of the key elements of the new Act:

Statement of Rights

What is it?

A legally embedded statement that sets out the fundamental rights of people accessing aged care services, such as dignity, choice, safety, and respect.

What it means for providers

These rights act as a framework for how care should be delivered at every touchpoint. That means everything from the way staff communicate and interact with residents, to how decisions are made and complaints are handled.

Strengthened Aged Care Quality Standards

What is it?

Updated Quality Standards place greater emphasis on aspects like clinical care, dementia support, governance, and nutrition, with graded assessments conducted by the regulator.

What it means for providers

Policies and procedures need to be evident in everyday practices. Regulators will look at how care is provided in real-world settings, so it’s crucial that the whole workforce understands how these standards should be upheld.

A new regulatory model and provider registration system

What is it?

A single, universal registration framework for all government-funded providers, with conditions linked to quality, safety, worker screening, and the Code of Conduct.

What it means for registered providers

Continued registration will rely on having strong internal systems, robust governance, and organisation-wide compliance.

Mandatory internal systems for complaints and whistleblowing

What is it?

A new mandate requires providers to maintain formal complaint handling processes and internal whistleblower protections as part of their registration conditions.

What it means for Registered Providers

Anyone who wants to raise concerns – whether residents, families, or staff members – must have a clear pathway to do so, supported by processes that allow you to respond quickly and effectively.

 

Statutory Duties and Risk Implications for Aged Care Providers

Another major change that registered providers need to be aware of is the introduction of two statutory duties:

• Registered Provider duty, which focuses on proactive harm prevention and care standards.
  Example: Failing to maintain basic safety systems, e.g. not having processes to inspect and maintain mobility equipment, leading to a preventable injury.  

• Responsible person’s* duty, which focuses on leadership accountability and culture of safety.
  Example: Senior leaders being aware of repeated safety incidents or understaffing risks but not taking reasonable steps to address them.

* “Responsible persons” include board directors, executive decision-makers and individuals with significant influence over operations. Clinical roles such as Registered Nurses are only captured where they genuinely hold executive or decision-making authority.

The fact is, incidents like these are not rare outliers. They reflect the kinds of everyday operational risks we see across the sector, where small system gaps can lead to serious harm and significant consequences.

What happens in the case of a duty breach?

If a provider is found guilty of breaching one of these duties, an updated compensation pathway set out by the new Act will allow affected individuals to claim damages.

Here’s how the new statutory duties can result in increased risk for registered providers:

• Stronger accountability: While there’s a move away from “strict liability” offences, there remains a core focus on provider accountability, especially where failures lead to serious harm (even if unintentional).
• Higher financial penalties: Criminal sanctions have been removed, but don’t be fooled – civil penalties for serious breaches can be much higher than under previous legislation. This raises the financial risk linked to poor systems or compliance failures.
• Individual responsibility: With individuals now able to be held personally liable for serious breaches, there’s a greater need for active oversight and taking steps to address issues before they escalate.

The fines associated with duty breaches are significant.

For Registered Providers and Responsible Persons: Breach type: Penalty estimate

Serious failure to comply with statutory duty (registered provider that is an individual): 150 penalty units (~$49,500)

Serious failure to comply (registered provider other than an individual): 1,000 penalty units (~$330,000)

Serious failure resulting in death or serious injury/illness (individual provider or responsible person): 500 penalty units (~$165,000)

Serious failure resulting in death or serious injury/illness (non-individual providers): 4,800 penalty units (~$1,584,000)

 

Risk Management Steps for Providers

“When aged care residents are already vulnerable to injury and illness, every step must be taken to ensure their safety is a top priority.”

Barb Hill, WorkSafe Acting Chief of Health and Safety 

The changes introduced in the new Act directly impact the risk landscape for providers. Increased regulation, new duties and standards, and modified compensation pathways all require a renewed focus on identifying and mitigating risks in this new era of aged care.

Risk management practices may include the following:

• Compliance monitoring: Regularly review care practices, equipment safety checks, and documentation processes to ensure they align with current legal obligations and quality standards.
• Incident management and quality improvement: When incidents occur, investigate thoroughly and take active steps to strengthen systems and reduce the chance of harm recurring.
• Robust hiring processes: Screen, train, and supervise staff to ensure every member of your workforce has the right skills and clearance for their role.
• Reviewing insurance policies: Check existing policies to ensure your coverage reflects changing regulations and potential financial risks linked to serious incidents.

If you want to have your risk framework reviewed or are unsure about its effectiveness, Ansvar has a free online risk maturity self-assessment tool (RMA Online). The tool can assist your organisation in better understanding where you are on your risk management journey, assess the effectiveness of your risk management framework and help identify areas for improvement.

 

Aged Care is Changing. Is Your Risk Management Keeping Pace?

As a registered aged care provider, knowing you have insurance that covers you against emerging risks means protection and peace of mind.

At Ansvar, we specialise in insurance cover for residential aged care and home care providers, and other aged care industry professionals.

If you’d like more information about our tailored solutions, get in touch with our friendly team today.

 

A more People-focused aged care system

The new Aged Care Act, which commenced on 1 November 2025, is designed to put the rights, dignity and needs of older people at the centre of a stronger, people-focused aged care system.

It aims to empower older people to live active, self-determined and meaningful lives with greater choice and control, uphold their rights through a statutory Statement of Rights, ensure equitable and culturally safe access to care, support full participation in society, and strengthen quality, safety and accountability in how aged care services are delivered and regulated.