Stay Ahead of the New Aged Care Act: Strengthen Your Asset Management Today

How the New Aged Care Act Impacts Asset Management: What Providers Need to Know

The aged care sector is undergoing significant changes in 2025 with an update to the New Aged Care Act. Designed to improve the quality of care for older Australians, the Act introduces a stronger framework for governance, financial management, and service delivery. Aged care providers must adapt to these changes, particularly in how they manage and maintain physical assets, which play an important role in ensuring high-quality living conditions for residents.

Many aged care providers are unprepared for the demands of the new regulations, creating challenges in asset sustainability and financial planning. As asset and facility managers grapple with these changes, effective asset management will be key to future-proofing operations. By taking a proactive approach to property asset management, aged care organisations can mitigate risks, reduce unexpected costs, and maintain high-quality services.

Key Changes in the New Aged Care Act Impacting Asset Management

One of the most significant aspects of the New Aged Care Act 2025 is its financial and operational impact on aged care providers. While the Act aims to enhance care standards, it also introduces new responsibilities related to accommodation costs, funding requirements, and financial assessments for both residential and home care services. These changes make physical asset management more important than ever, as providers must now demonstrate responsible and sustainable asset planning.

Accommodation Costs & Funding Requirements

Chapter 4 of the New Aged Care Act 2025 outlines updated accommodation cost structures, affecting both government-funded and privately funded aged care providers. Poorly maintained buildings or infrastructure may not meet required standards, leading to funding challenges and reputational risks. Financial sustainability is directly tied to how well facilities are managed and maintained.

Whereas Chapter 5 of the Aged Care Act 2024 manages all the aged care services and explains the role of the Aged Care Quality and Safety Commission (ACQSC). The ACQSC is a non-government organization that will oversee the aged care system and ensure these quality standards are met for the providers to get their funding approved.

In addition, Section 98 of the NSW Government Retirement Villages Act requires retirement villages to include capital maintenance in the proposed annual budget. Providers must also include a 3-year report prepared under clause 19A of the Regulation for capital maintenance extracted from the Asset Management Plan (section 5 of these guidelines).

Financial Assessments for Residential and Home Support Services

Under the new framework, aged care providers will face greater scrutiny in financial assessments. Properly maintaining properties and assets is not just about resident safety and comfort; it also impacts the provider’s financial viability. Facilities that do not have a clear, structured property asset management plan risk higher maintenance costs, unexpected repairs, and potential funding cuts.

The Risks of Poor Asset Management

Failing to plan and manage assets effectively can have significant operational and financial risks, including:

Increased reactive maintenance costs, which can drain budgets and reduce financial stability.
Risks if facilities do not meet safety and accommodation standards.
Resident dissatisfaction, impacting occupancy rates and provider reputation.
Challenges in securing future funding due to poor financial forecasting.

The Role of Asset Management Planning (AMP) in Aged Care

Asset Management Planning (AMP) is a strategic approach to managing physical assets in aged care homes and retirement villages. It ensures that asset managers have a long-term plan for essential repairs, maintenance, and upgrades—reducing unexpected costs and improving service quality.

Effective AMP includes:

Lifecycle analysis – Understanding the lifespan of assets to minimise unexpected repairs and reduce long-term costs.
Future planning – Creating structured budgets for proactive maintenance and upgrades.
Resident wellbeing – Ensuring that assets support a safe and comfortable living environment.

Unlike reactive maintenance, which deals with problems as they arise, AMP focuses on long-term planning. This means that aged care facilities can provide residents with the best possible living conditions, creating an environment that feels as much like home as possible. With the New Aged Care Act 2025 introducing stricter financial oversight, having a structured AMP is no longer optional—it’s a necessity.

How SPM Assets Helps Aged Care Providers Optimise Asset Management

The shift towards long-term financial sustainability means that aged care providers need a clear, structured approach to managing their physical assets. Without an asset management plan, providers risk financial strain and deteriorating facility conditions.

At SPM Assets, we offer a three-step approach to help aged care providers optimise their asset management:

Assess

Get a clear picture of your physical assets and their condition:

Asset registers – Comprehensive records of all assets.
Functionality & amenity assessments – Evaluating assets’ ability to support residents’ needs.
Condition assessments – Identifying maintenance needs before they become urgent.

Analyse

Understand current and future demands and explore options that impact risk and budget:

Lifecycle analysis – Predicting asset performance and replacement cycles.
Financial risk assessments – Identifying cost-saving opportunities.

Plan

Create practical, strategic plans for future asset management:

Asset management plans – Customised strategies for maintenance, forecasting, and long-term sustainability.
Maintenance planning – Balancing planned and reactive maintenance to minimise disruption.

SPM Assets’ Tailored Services for Aged Care Providers

We provide comprehensive support, including:

✔ Custom asset management plans – Including maintenance strategies, long-term forecasting, and risk assessment. Our software provides reports that are aligned to government requirements.

✔ On-site assessments – Detailed condition assessments to ensure accurate data collection for reporting.

✔ Training & support – Helping facility teams build the skills needed to manage assets effectively and independently.