Aged care deposit levy now uses the new provider name
Many people pay a big deposit when they move into an aged care home. A small law updated the wording of the charge that protects that money. It keeps working under the new Aged Care Act 2024.
Official name: Aged Care (Accommodation Payment Security) Levy Amendment Bill 2025
- This law swaps the old term "approved provider" for "registered provider" in the law on the deposit charge.
- Without the change, the government could not charge aged care businesses to win back money it paid to residents when one goes broke.
- The government says nothing about how the charge works has changed.
- It became law on 5 September 2025. It starts when the Aged Care Act 2024 starts.
Who it affects
- People living in aged care homes who paid a lump-sum deposit: The safety net for their deposit keeps working under the new aged care law.
- Aged care providers: This law now calls them registered providers. They can still be charged if the safety net is used.
- The government: It keeps the power to charge aged care businesses to win back money it pays out.
Protecting aged care room deposits
When people move into an aged care home, many pay a large lump sum for their room. The home must pay this money back later, for example when the person leaves.
Sometimes the business that runs the home goes broke. Then it cannot pay the money back. A government scheme steps in and pays the family. It is called the Accommodation Payment Guarantee Scheme.
The government then gets that money back. It does this by charging the other aged care businesses. This charge is called a levy. It works a bit like a tax on one group of businesses.
The rules for this charge sit in a law called the Aged Care (Accommodation Payment Security) Levy Act 2006.
Parliament also passed a whole new aged care law, the Aged Care Act 2024. It replaces the Aged Care Act 1997. The new law uses different words for some things.
The one change
Under the old law, aged care businesses were called "approved providers". Under the new law, they are called "registered providers".
The law on the charge still used the old term. That term was explained in the old 1997 law. Once the old law is gone, the old term would point to nothing.
The government's notes on the bill say the charge could then not be made properly. That would make it hard to win back money paid out to residents.
This law has one part with seven small changes. It removes the old meaning, adds the new one, and swaps the words in each place they appear.
Say an aged care company fails and the government pays back your family's deposit. This law makes sure the government can still charge the other businesses to cover it. The government says the rules work the same as before.
Start date
This is now law. It was put to the House of Representatives, the larger house of Parliament, on 24 July 2025. It went in together with a larger bill, the Aged Care and Other Legislation Amendment Bill 2025.
The House passed it on 30 July 2025. The Senate, the second house of Parliament, passed it on 3 September 2025.
The Governor-General is the King's stand-in in Australia. He or she signed it into law on 5 September 2025. It became Act No. 43 of 2025, its number in the list of that year's laws.
It starts at the same moment as the Aged Care Act 2024.
How they voted
| Vote | Result |
|---|---|
| Vote to add a statement Senate, 3 September 2025 Labor 23 no, Liberal 15 aye, Greens 9 no, One Nation 3 aye, Nationals 2 aye, Independent 2 aye, LNP 1 aye, Country Liberal 1 aye, Australia's Voice 1 aye, United Australia 1 aye | Noes won 32 to 26 |
| Vote on a change Senate, 3 September 2025 Labor 22 no, Liberal 15 aye, Greens 8 aye, One Nation 3 aye, Nationals 2 aye, Independent 2 aye, LNP 1 aye, Australia's Voice 1 aye, United Australia 1 aye | Ayes won 33 to 22 |
| Vote on a change Senate, 3 September 2025 Labor 22 no, Liberal 15 aye, Greens 9 no, One Nation 3 aye, Nationals 2 aye, Independent 2 no, LNP 1 aye, Australia's Voice 1 aye, United Australia 1 aye | Noes won 33 to 23 |
| Vote on a change Senate, 3 September 2025 Labor 22 no, Greens 9 aye, One Nation 3 no, Liberal 3 no, Independent 2 aye, Australia's Voice 1 aye, United Australia 1 no | Noes won 29 to 12 |
| Vote on a change Senate, 3 September 2025 Labor 22 no, Greens 10 aye, Independent 3 aye, Liberal 3 no, One Nation 2 aye, Australia's Voice 1 aye, Lambie Network 1 no | Noes won 26 to 16 |
| Vote on a change Senate, 3 September 2025 Labor 21 no, Liberal 16 aye, Greens 9 aye, Independent 3 aye, One Nation 2 aye, LNP 1 aye, Nationals 1 aye, Country Liberal 1 aye, Australia's Voice 1 aye, Lambie Network 1 aye | Ayes won 35 to 21 |
| Vote on a change Senate, 3 September 2025 Labor 20 no, Liberal 15 aye, Greens 9 aye, One Nation 3 aye, Independent 3 aye, LNP 1 aye, Nationals 1 aye, Country Liberal 1 aye, Australia's Voice 1 aye, Lambie Network 1 aye | Ayes won 35 to 20 |
| Vote on a change Senate, 3 September 2025 Labor 21 no, Greens 9 aye, Liberal 5 no, Independent 3 aye, One Nation 3 no, Australia's Voice 1 aye, Lambie Network 1 aye, LNP 1 no | Noes won 30 to 14 |
Its journey through Parliament
| 24 Jul 2025 | House of Representatives: Introduced and read a first time |
| 24 Jul 2025 | House of Representatives: Second reading moved |
| 30 Jul 2025 | House of Representatives: Second reading debate |
| 30 Jul 2025 | House of Representatives: Referred to Federation Chamber |
| 30 Jul 2025 | House of Representatives: Second reading debate |
| 30 Jul 2025 | House of Representatives: Second reading agreed to |
| 30 Jul 2025 | House of Representatives: Reported from Federation Chamber |
| 30 Jul 2025 | House of Representatives: Third reading agreed to |
| 31 Jul 2025 | Senate: Introduced and read a first time |
| 31 Jul 2025 | Senate: Second reading moved |
| 26 Aug 2025 | Senate: Second reading debate |
| 01 Sep 2025 | Senate: Second reading debate |
| 02 Sep 2025 | Senate: Second reading debate |
| 03 Sep 2025 | Senate: Second reading debate : Amendment details: 1 Opposition (in part) and 1 Australian Greens agreed to |
| 03 Sep 2025 | Senate: Second reading agreed to |
| 03 Sep 2025 | Senate: Committee of the Whole debate |
| 03 Sep 2025 | Senate: Third reading agreed to |
| 03 Sep 2025 | : Finally passed both Houses |
| 05 Sep 2025 | : Assent Act no : 43 Year : 2025 |