Four months into the new Aged Care Act providers are beginning to see what reform looks like in practice.

This rights-based, evidence-driven legislation is reshaping governance, financial operations, compliance expectations and frontline culture across the sector.

In a recent DCM Group webinar, Health Metrics’ and MOA Benchmarking Chief Scientific Officer, Lahn Straney, joined sector leaders to reflect on the first 120 days of the Act. Throughout the discussion, one key message stood out: this is a structural reform with tangible operational consequences.

The panel identified four key shifts already emerging. Here’s what they mean for aged care providers.

1. Governance under increased pressure

Registration renewal invitations are landing across the sector. At the same time, boards are engaging more deeply, and risk appetite is tightening.

Under the new Act, governance expectations have lifted significantly. Boards are expected to understand not only the strengthened standards, but also conditions of registration, clinical governance responsibilities and risk oversight frameworks.

The new Act moves beyond simple compliance to an organisation’s ability to demonstrate insight and control.

For providers, this means governance reporting must be supported by accurate, defensible data. Board conversations are increasingly focused on trends in restrictive practices, complaints, incident reporting and quality indicators.

This is showing up as a growing demand for clear dashboards, meaningful performance indicators and connected reporting that supports board and executive oversight. In this environment, visibility is foundational.

2. Data reporting and compliance expectations have intensified

The Act reinforces that providers are assessed not only on what they do, but on what they can prove.

Documentation fatigue is real, yet scrutiny around data accuracy and reporting consistency is increasing. More advanced conversations around incident reporting and quality indicators are becoming common at both executive and board levels.

The goal is not to collect more data, but to ensure data is accurate, connected and meaningful.

For boards and executives, performance dashboards and cross-correlated insights are becoming essential governance tools. For frontline teams, systems must support intuitive workflows rather than create unnecessary administrative burden.

The focus needs to be on making information usable, not just reportable. When care management systems reflect real workflows, data quality improves. When insights are surfaced clearly, risk can be identified earlier.

Strong data foundations support compliance, reduce regulatory risk and strengthen organisational confidence.

3. A rights-based framework requires cultural and operational alignment

The move to a rights-based framework under the Act represents a welcome cultural shift, but it requires operational change too.

Providers must foster psychological safety for reporting, strengthen partnerships between quality and operations, and ensure leadership behaviours reinforce transparency and accountability.

Quality and compliance can no longer operate as standalone audit functions. They must work collaboratively with frontline teams to identify subtle risks and embed continuous improvement.

Technology plays an important role in this cultural shift. Systems that reduce duplication and return time to care support workforce sustainability, while those that surface risk clearly enable more confident decision-making.

Culture and systems are interconnected. One reinforces the other.

4. A more collaborative regulator with explicit accountability

Many providers have noted a more consultative tone from the regulator during the first 120 days.

A “best efforts” approach during transition has been recognised, with engagement generally constructive.

However, accountability is sharper and more explicit than ever. Providers must demonstrate continuous improvement. Governance mechanisms must be defensible. Risk profiling must be proactive rather than reactive.

This reinforces the importance of governance readiness. Clear audit trails, accurate incident reporting, reliable quality indicators and strong governance reporting have become strategic safeguards.

What success under the New Aged Care Act 2024 will require

The first 120 days suggest that success under the new Act will depend on three interconnected capabilities:

• Governance visibility
• Operational clarity
• Data maturity

Providers who can clearly understand their risk profile, support frontline teams with intuitive systems and translate data into meaningful insight will be better positioned to meet compliance requirements and sustain high-quality care.

Health Metrics supports aged care providers by delivering connected care management systems and practical reporting insights that strengthen oversight and decision-making at every level of the organisation.

Reform is still in its early stages, but strategic decisions are already underway. For providers, the focus must now be on ensuring systems, governance and culture are aligned to meet the demands of a changing sector.