A Stronger Future for Aged Care: New Financial and Prudential Standards
The Aged Care Quality and Safety Commission has today published a consultation summary report on the draft financial and prudential standards that will apply to aged care providers from 1 November 2025, under the new Aged Care Act.
The new financial and prudential standards are a key reform under the Australian Government’s commitment to improving the safety, quality, and resilience of the aged care sector, as recommended by the Royal Commission into Aged Care Quality and Safety.
Aged Care Quality and Safety Commissioner, Liz Hefren-Webb, said the new financial and prudential standards will bolster the transparency, accountability, and long-term sustainability of aged care providers across Australia.
“The new financial and prudential standards will ensure that aged care providers are not only meeting their obligations to deliver high-quality care but are also financially viable and effectively managing the funds entrusted to them,” Ms Hefren-Webb said.
In progressing drafting of the new standards, the Commission has considered feedback received throughout the public consultation process, which focussed on the themes of minimum liquidity amounts, phasing of implementation, and ensuring clarity of the new requirements in the standards.
Deputy Commissioner Regulatory Operations, Gary Rake, said the reforms mark a significant shift in regulatory oversight to better protect residents and ensure providers are equipped to deliver sustainable care and services into the future.
“These new standards provide a clear and consistent framework for financial stewardship in the aged care sector,” Mr Rake said. “They will help ensure that providers are managing resources responsibly, while giving older people and their families greater confidence in the services they rely on.”
Following consultation, the Commission has adjusted the minimum liquidity calculation, reducing the requirement for refundable retirement deposits from 10 percent down to 2 percent. The Commission has also committed to clarifying how providers can use alternate methods to demonstrate they are meeting the objectives of the Liquidity Standard.
The Commission has calculated that 84 percent of providers already hold liquid assets exceeding the minimum amount that would be required by the new Liquidity Standard.
To give the sector certainty and time to prepare, after releasing the report today, the Commission will publish a final version of the standards over the coming weeks.
The Commission will continue to work closely with providers to support implementation, and offer guidance materials, educational resources, and other sector engagement activities.
Media enquiries: media@agedcarequality.gov.au
Further information:
The consultation summary report is available on the Commission’s website at:
Changes to the proposed minimum liquidity standard following consultation
| Component of the Minimum Liquidity amount calculation | Original Standard (for consultation) | Revised Standard (post-consultation) |
| Percentage of the previous quarter’s cash expenses | 35% | 35% |
| Percentage of retirement refundable deposit liabilities | 10% | 10% |
| Percentage of retirement refundable deposit liabilities | 10% | 2% |
