Annual obligation to review all service agreements with participants, clients and residents

The Aged Care Rules 2025 (Cth) impose clear and ongoing obligations on registered providers to actively review their service agreements with individuals accessing funded aged care services. While much sector focus has been on entering into compliant agreements for all pre-1 November residents and clients by the legislated time frames (which is 31 October 2026 for residential aged care and CHSP;), providers must now turn their mind to ongoing obligation to ensure those agreements are regularly reviewed, and, where appropriate, updated.

This applies to all individual’s accessing ongoing funded aged care, not just those who commenced service deliver post 1 November 2025.

What do the Rules require?

The Aged Care Rules require that service agreements for ongoing funded aged care services must include provisions for review.

At a minimum, providers must ensure that:

• Annual review: the agreement is reviewed at least once every 12 months; and
• On request: the agreement is reviewed whenever requested by the individual.

Importantly, this is not an administrative or “tick-box” obligation. When conducting a review, providers must:

• Give the individual an opportunity to participate in the review;
• Actively consider whether updates are required to the agreement; and
• Vary the agreement where necessary, in accordance with the variation provisions (which require adequate consultation and consent from all parties).

How we can help

There has been an increased focus on agreements in the sector so it is critical providers take steps to ensure they comply with their obligations.

Providers should be implementing a structured, organisation-wide approach to reviewing service agreements that enables the provider to evidence is compliance with obligations. It is important that those undertaking the review understand their obligations including that they must invite individuals to participate in the review as well as the lawful way to vary the agreement if applicable.

We have developed a suite of practical tools to support providers to operationalise these requirements across all service types, including:

Annual service agreement review templates for:

• residential aged care;
• Support at Home; and
• CHSP;

Template letters to residents/ participants / clients:

• explaining the purpose of the review;
• inviting participation; and
• setting expectations around outcomes.

These templates are available on the website RKDocsconnect