At December's council meeting held in St Arnaud, a motion was passed to review our community care services in response to Federal Government changes to the way aged care services are funded and delivered.
The new Aged Care Act 2024 and Aged Care Rules 2025 came into effect from November 1, 2025 and have a fundamental focus on the rights and needs of older people. This Act governs the way council provides community care services and introduces new operating requirements that require thorough review before we progress further with their implementation.
We have summarised the key legislation changes, their potential impact and outlined council's next steps below. You can also read more about the passed motion from council's CEO Brent McAlister on our website here.
The new Aged Care Act and its potential impact
The below aims to clarify the legislation changes and what council is doing as next steps to ensure our community continues to receive reliable, sustainable and cost-efficient aged care services.
Funding model changes
Assessing the funding model changes and council's potential future financial position is one of the priorities under this review as the Act is changing the funding model. It's moving away from block funding, where council receives set annualised funding to deliver aged care services and moving towards a fee-for-service, model where funding comes after an individual client chooses a particular provider.
As a result, more specialist providers will likely enter the market to offer aged care services which could make it difficult for council to remain cost-competitive, as these providers may deliver services more efficiently due to different cost structures, wage agreements and economies of scale.
This review is not simply about reviewing cost-cutting options. It is about ensuring our community has access to quality aged care services longer-term while balancing council's need to provide other essential services at the same time.
It is important to note that no council decisions have been made and will not be made until after we have engaged with our community in early 2026. Please refer to the information below to find out more.
What is changing within aged care?
Federal reform is changing how aged care services are provided following the Royal Commission into Aged Care Quality and Safety which delivered a report that was tabled in the Australian Parliament in March 2021.
This report subsequently led to the creation of the new Aged Care Act 2024 which came into effect from November 1, 2025, with changes under this new legislation expected to be fully implemented across the country by June 2027.
Why is it changing?
The Aged Care Act 2024 is a response to the findings of the Royal Commission into Aged Care Quality and Safety and their report, titled 'Care, Dignity and Respect'.
The Commission identified that the existing legislation was no longer appropriate because it focused on the care providers rather than the needs and rights of older people receiving the care. The new Act aims to place the rights of older people at the centre of the aged care system, ensuring they receive safe, high-quality care that respects their dignity and autonomy.
Some of the key changes in the Act include:
Rights-based approach: The Act introduces a Statement of Rights for older people, emphasising their independence, autonomy and their right to make choices about their care.
Funding model changes: The Act introduces a new funding model that requires older adults to make means-tested contributions towards their non-clinical care, with provisions for those facing financial hardship. This is one of the primary drivers for council's decision to conduct a thorough service review.
Regulatory framework: The Act strengthens the role of the Aged Care Quality and Safety Commission, enhancing its ability to regulate providers and ensure compliance with new quality standards.
Improved access and assessment: The Act establishes a single-entry system for access aged care services making is easier for older Australians to receive the support they need.
Increased accountability: The Act ensures care providers face stricter compliance requirements and penalties for non-compliance, ensuring that they meet the new Aged Care Quality Standards.
You can read the full report on the Royal Commission website here.
What will be looked at during the service review?
Council has some difficult decisions to make and want to be open and transparent about them with our community. We need to review areas such as:
- Can council sustainably continue as a direct service provider?
- Can our ratepayers continue subsidising services that are the responsibility of other levels of government?
- How can we best use the limited resources we have available to support the community?
- What role could council play that adds the most value for our older residents?
This review is about understanding what matters most to our community by exploring all of the available options before making any decisions. We need to find the most sustainable path forward and ensure council is using resources wisely for the benefit of the whole community. We are adopting a proactive position through thoughtful scenario planning and being transparent about the challenges and potential trade-offs with the options available.
This review is not about validating pre-determined council decisions or deprioritising the needs of our older residents. Nor are we are not making quick cost-cutting measures which could leave people without services.
Your voice will shape the decision. The community engagement council makes available in early 2026 is a genuine opportunity to help us understand what is most important to our community and to explore the various options together.
How can I have my say?
A service review is a systematic framework that helps provide clear and consolidated information which can then be used to make informed decisions, with a central component of any review being community engagement and feedback.
The Community Care Services Review 2026 aims to clarify the following areas with our community:
- What matters most to our community about aged services?
- What do people value about council's current role in aged care service delivery?
- What concerns people most about the potential changes?
- How can council best support our older residents, whether this is through direct service provision or a position of advocacy and community development?
- How should council balance competing community priorities with limited resources?
The community engagement activities will likely include the following:
- Survey, available online and via hard copy by collection from our council offices.
- Workshops, one in Stawell and one in St Arnaud.
- Drop-in sessions, one in Stawell and one in St Arnaud.
- Chat with a councillor, further details will be provided in due course.
Further information about these activities and how you can participate will be available in January following the Christmas break. If you would like to be notified directly about when these activities are available, please add your name to the following registration list and we will be in touch.
What is the timeline of events?
Council will conduct an extensive community engagement program alongside other internal assessments and engagement with industry stakeholders. Findings from these activities will then be summarised and present to councillors with next step recommendations before a final decision is made.
January / February
Community engagement will be available from Tuesday, January 27 until Tuesday, February 24, 2026. This will include activities such as a survey, workshops and drop-in information sessions. More information about these activities and how you can get involved will be available in due course, however you can also add your name via the registration formed linked at the bottom of this page to be notified directly.
March / April
Assessment of community feedback and collation of a findings report with potential next step recommendations.
May / June
Findings report presented to councillors for consideration and further discussions with council representatives and key industry stakeholders.
July
A formal decision about whether council will continue or conclude providing community care services will be made at their July council meeting. You will be able to review the meeting agenda a week before the meeting on our website here.
Want to know when community engagement opens?
Please keep in mind that council is still working through the community engagement activities that will be available in January 2026, however if you would like to be notified when the engagement period opens, please add your name to the form linked below and you will hear from us with more information over the coming weeks.