The short answer

Aged Care Legislation Amendment (Aboriginal and Torres Strait Islander Aged Care Commissioner and Other Measures) Bill 2026 Explained

The Aged Care Legislation Amendment (Aboriginal and Torres Strait Islander Aged Care Commissioner and Other Measures) Bill 2026 is a Government bill introduced in the House of Representatives on 1 July 2026 by the Minister for Aged Care and Seniors, Sam Rae MP. The bill would amend the Aged Care Act 2024 to create a statutory Aboriginal and Torres Strait Islander Aged Care Commissioner within the Aged Care Quality and Safety Commission, give effect to Recommendation 49 of the Royal Commission into Aged Care Quality and Safety, and make a range of technical amendments to the Aged Care Act 2024 and Aged Care Rules 2025. According to the official summary on the Parliament of Australia bill page, the bill would also repeal the Aged Care (Consequential and Transitional Provisions) (Aged Care System Modification) Rules 2025. The bill is currently before the House of Representatives and was referred to the Senate Community Affairs Legislation Committee on 2 July 2026, with a report due 11 August 2026.

This is a federal system guide. State constitutions, parliaments and local-government laws can allocate comparable functions differently.

The useful question is not only “what is the rule?” but also “who administers it, which document controls it, and when might it change?” That distinction prevents an accurate general explanation from becoming wrong advice in a particular election, chamber or policy setting.

Evidence review

What the bill proposes — three schedules of amendments

The bill is structured in three schedules. Schedule 1 is the headline measure: it would establish the statutory office of the Aboriginal and Torres Strait Islander Aged Care Commissioner within the Aged Care Quality and Safety Commission. This gives legislative effect to Recommendation 49 of the Royal Commission into Aged Care Quality and Safety, which called for a dedicated First Nations aged care leadership role.

The Commissioner would operate as a functionally independent office with powers to advocate for culturally safe, trauma-aware and responsive aged care services; drive systemic improvements; provide independent advice and oversight to the System Governor (the head of the aged care system); and produce an annual report and annual work plan. The Commissioner could also access the Commission's capacity-building and educational functions.

The model was informed by extensive national consultations conducted by the Interim First Nations Aged Care Commissioner with older Aboriginal and Torres Strait Islander people, their families and communities, community-controlled and mainstream providers, and peak bodies. The Interim Commissioner's report, 'Transforming Aged Care for Aboriginal and Torres Strait Islander people', along with the Royal Commission's recommendations, form the basis of the amendments.

Evidence review

Schedule 2: Making the Aged Care System Modification Rules permanent

Schedule 2 translates temporary measures from the Aged Care (Consequential and Transitional Provisions) (Aged Care System Modification) Rules 2025 into permanent amendments to the Aged Care Act 2024 and the Aged Care Rules 2025. This schedule would then repeal the temporary rules, as reflected in the official summary on the Parliament of Australia bill page.

Key changes include: amending section 89 of the Act so that an individual's ongoing Home Support priority category and classification level can be reinstated if a legislated uptake period is missed; introducing new sections to enable payment of Government subsidy to providers who cannot claim through regular channels; and creating a payment pathway at the Service Delivery Branch level.

The schedule also amends provisions for income and asset determinations for residential care means testing — including variations following social security decisions, dates of effect for variations, and asset determination changes arising from provider notifications about refundable deposit balances. Section 337 would be amended to make it mandatory for registered providers to report an individual's refundable deposit balance or refundable accommodation contribution balance.

These amendments are designed to ensure individuals accessing funded aged care services benefit from relevant indexation changes and revaluations, and that contribution rates accurately reflect each person's financial circumstances.

Evidence review

Schedule 3: Other measures — from provider refunds to accommodation payment choice

Schedule 3 contains 13 parts of miscellaneous amendments. Key changes include: requiring providers to refund overcharged contributions and overpaid resident fees (Parts 5 and 6); restoring full accommodation payment choice during the interim period before means assessment is finalised (Part 7); allowing refundable deposit liabilities to transfer with a service upon sale or merger without requiring cash transfer, with the receiving provider assuming all obligations (Part 8); and providing that refundable deposits are assessable for aged care means testing on entry to residential care (Part 10).

Other parts address: exempting elected local government members from the definition of 'responsible person' (Part 2); enabling a staged transition of residential care subsidy from advance payments to arrears (Part 4); establishing a two-notice process totalling 46 days for requesting income and asset information (Part 9); modifying the 90-day decision timeframe for reviewable decisions (Part 12); and authorising overpayments to be recognised as recoverable amounts (Part 13).

Evidence review

Parliamentary and policy context

This is a Government bill from the Health, Disability and Ageing portfolio. The creation of the Commissioner role is a direct response to the Royal Commission's final report, which identified that Aboriginal and Torres Strait Islander people face significant barriers to accessing culturally safe aged care. The Royal Commission found that the aged care system had failed to meet the needs of First Nations elders.

The technical amendments in Schedules 2 and 3 address operational issues that have emerged since the Aged Care Act 2024 commenced. The explanatory memorandum states there are no financial impacts from measures in the bill.

The bill was introduced in the House of Representatives on 1 July 2026 and is currently 'Before Reps'. It was referred to the Senate Community Affairs Legislation Committee on 2 July 2026, with a report due 11 August 2026.

Evidence review

Human rights implications

The statement of compatibility in the explanatory memorandum addresses the bill's engagement with the right to health (Article 12 of the ICESCR), the rights of Indigenous peoples (including the UN Declaration on the Rights of Indigenous Peoples), and the rights of older persons. The bill is assessed as compatible with human rights and advances the right to the highest attainable standard of health for Aboriginal and Torres Strait Islander peoples by improving access to culturally safe aged care.

The statement of compatibility with human rights concluded the bill advances the rights of Aboriginal and Torres Strait Islander peoples to health and self-determination, consistent with Australia's obligations under the International Covenant on Economic, Social and Cultural Rights.

Common questions

Before you rely on the answer

What is the Aboriginal and Torres Strait Islander Aged Care Commissioner?

A new statutory office to be created within the Aged Care Quality and Safety Commission, with functions including advocating for culturally safe aged care, driving systemic improvements, providing independent advice to the System Governor, and producing annual reports. It implements Recommendation 49 of the Royal Commission into Aged Care Quality and Safety.

Does this bill change how aged care subsidies are paid?

Yes. Schedule 2 creates pathways for Government subsidy payments when providers cannot use regular claiming channels, and Schedule 3 enables a staged transition of residential care subsidy from advance payments to arrears.

Would this bill require providers to refund overcharged fees?

Yes. Parts 5 and 6 of Schedule 3 would explicitly require aged care providers to refund overcharged contributions and overpaid resident fees and contributions. The bill would empower the Secretary to direct providers to refund overcharged amounts where subsidies were incorrectly claimed or retained.

When was this bill introduced and what is its status?

The bill was introduced in the House of Representatives on 1 July 2026 and is currently before the House, having been read a first time. It has not yet been debated, and was referred to the Senate Community Affairs Legislation Committee on 2 July 2026, with a report due 11 August 2026.

Source spine

Primary material used for this guide

Review trigger: Official summary published on the Parliament bill page on 2026-08-05; review when the Senate Community Affairs Legislation Committee reports (due 11 August 2026), when the bill is debated or amended in either chamber, or when the official summary changes.

Archive note: Referred to the Senate Community Affairs Legislation Committee on 2 July 2026; report due 11 August 2026. Review after the committee reports, after second reading debate in the House of Representatives, or if the bill is amended.

Primary links are provided without affiliate or tracking parameters. Confirm that the source still applies to the bill, sitting date, jurisdiction or reporting period before relying on it.