09 Dec 2025
2025 Legal Year in Review: Key Australian Law Changes and What’s Ahead for 2026
As 2025 draws to a close, Australia’s legal landscape reflects another year of reform focused on accountability, fairness, and technological adaptation.
From mandatory merger notifications and franchising reforms to landmark changes in family, aged care, and privacy law, 2025 has reshaped many of the frameworks that underpin Australian legal practice.
Courts and regulators have also responded dynamically to emerging technologies, particularly generative artificial intelligence (Gen AI), setting new expectations for professional conduct, ethical duties, and procedural integrity.
Prepared by the experts at LexisNexis® Practical Guidance, this review distils the year’s most consequential legal developments by practice area.
It also looks ahead to proposed 2026 reforms and anticipated shifts across key areas of practice, helping legal professionals plan with confidence for the year ahead.
2025 Key Legal Developments by Practice Area
We’ve broken down the most significant legal developments of 2025 into key practice areas. The sections below provide concise summaries of the reforms, cases and regulatory shifts that shaped each area this year, along with what legal professionals should be watching closely in 2026.
Banking and Finance Law Updates 2025
Australia’s banking and finance sector experienced significant regulatory changes in 2025.
The upcoming anti money laundering and counter terrorism financing (AML/CTF) reforms represent a significant shift for both existing regulated entities and newly included “Tranche 2” entities, aligning the nation’s framework with global standards.
The AML/CTF Rules were released in August 2025, followed by AUSTRAC’s core guidance in October, which aim to assist businesses in understanding their obligations and prepare for compliance.
Looking ahead, AUSTRAC is expected to release sector-specific guidance and starter program kits for Tranche 2 entities from the end of January 2026, and ministerial guidelines on legal professional privilege are anticipated later in 2026 to support legal practitioners in navigating their new obligations.
Accountability measures have also been tightened, with the Financial Accountability Regime (FAR) extended beyond authorised deposit-taking institutions (ADIs) to insurers and superannuation trustees on 15 March 2025.
Additionally, Buy Now Pay Later (BNPL) providers were brought into the National Credit Code in June, requiring them to hold an Australian credit licence and comply with responsible lending obligations.
Australia’s sustainable finance taxonomy was released in June, aiming to provide a clear and consistent framework for identifying and classifying sustainable economic activities.
Initially covering climate mitigation criteria across six priority sectors, the taxonomy supports continued investment in climate-aligned activities.
Finally, the rapid growth of the private credit market in Australia has drawn the attention of the Australian Securities and Investments Commission (ASIC).
ASIC’s report 823 "Advancing Australia’s evolving capital markets" highlights the need for enhanced standards in governance, transparency, and risk management within this sector.
2026 Watch List
- Sector-specific AUSTRAC guidance for Tranche 2 entities.
- Ministerial guidelines on legal professional privilege.
- Continued regulatory scrutiny of private credit markets.
Explore Practical Guidance: Banking and Finance →
Commercial Law Developments
Significant reforms to the Franchising Code of Conduct, set out in Ch 2 of the Competition and Consumer (Industry Codes-Franchising) Regulations 2024 (Cth), came into force from 1 April 2025.
Purchase: Annotated Franchising Code of Conduct, 4th edition by Stephen Giles.
Some transitional arrangements came into effect from 1 November 2025 to allow stakeholders time to comply. The reforms reflect recommendations from a consultation paper and aim to foster a more equitable franchising environment for both franchisors and franchisees.
Key changes include restrictions on restraint of trade clauses, greater financial transparency, mandatory compensation for franchisees for early termination, and a requirement that franchisees are given a reasonable opportunity to make a return on any investment required by a franchisor.
More information on franchising is available to Practical Guidance Commercial subscribers.
Looking ahead to 2026, the AML/CTF reforms will take full effect for newly regulated Tranche 2 entities. The Trusts Act 2025 (Qld), which received Royal Assent on 19 May 2025, is expected to commence and introduce significant reform to trust law in Queensland.
Reforms to strengthen the Modern Slavery Act 2018 (Cth) are also anticipated following industry consultation in 2025.
2026 Watch List
- Reforms to the Modern Slavery Act 2018 (Cth).
- Implementation of the Trusts Act 2025 (Qld).
- Full AML/CTF commencement for Tranche 2 entities.
Explore Practical Guidance: Commercial
Competition and Mergers & Acquisitions
In 2025, Australia began rolling out major reforms to its merger clearance framework, moving from a voluntary system to a mandatory administrative regime.
Championed by the Australian Competition and Consumer Commission (ACCC) and supported by the Federal Government, the changes aim to improve transparency, accountability, and consistency in merger review.
From 1 July 2025, the system operates on a voluntary basis before becoming mandatory on 1 January 2026. Mergers that meet prescribed thresholds, or are identified by legislative instrument, must be notified to the ACCC.
The process introduces statutory timeframes, clear filing requirements, and a structured two-phase assessment designed to enhance predictability for businesses and advisers.
A central reform is the expanded “substantial lessening of competition” (SLC) test, which now captures mergers that create, strengthen, or entrench market power and considers the cumulative effect of acquisitions over the past three years.
For competition and M&A lawyers, the reforms mean greater scrutiny, longer timelines, and more rigorous documentation. Early engagement with the ACCC and a technical understanding of the legislative framework will be key to navigating the new regime.
Overall, these reforms mark a decisive shift toward a more disciplined and transparent approach to merger control in Australia.
In the year ahead, progress may be made on the Government’s proposed ban on non-competes for low and middle-income workers and on reforms to address supermarket price gouging.
The Government is also expected to progress the establishment of a new digital competition regime which would introduce upfront requirements for certain “designated” digital platforms, in line with similar international regimens including in the European Union.
2026 Watch List
- Proposed ban on non-competes for low-and middle-income workers.
- Digital competition regime development.
- Reforms targeting supermarket pricing conduct.
Explore Practical Guidance: Competition→
Explore Practical Guidance: Mergers & Acquisitions →
Construction
Victoria introduced significant construction law reforms in 2025, reshaping the framework for domestic building work and security of payment. The reforms aim to strengthen consumer protections, enhance payment processes, and improve regulatory oversight.
The Domestic Building Contracts Amendment Act strengthens consumer protections with stricter deposit and progress payment limits, clearer contract variation processes, and capped cost escalation clauses for high-value projects.
Infographic Download: Collaborative Contracting in Construction.
Oversight will move to a new Building and Plumbing Commission to streamline compliance and dispute resolution. The reforms will commence on 1 December 2026 (unless proclaimed earlier).
Meanwhile, Security of Payment reforms will abolish the “excluded amounts” regime, permit claims for variations and delay costs, remove reference dates, and introduce monthly claim rights.
Related: Security of Payment (SoP) Case Developments 2024
Additional measures include statutory release of performance security and adjudicator powers to invalidate unfair time bars, aligning Victoria with other states and territories.
The reforms will commence on 1 September 2026 (unless proclaimed earlier). Further information on Building Reform in Construction and Victoria Security of Payment is available to Practical Guidance Construction subscribers.
2026 Watch List
- Commencement of Victorian Building reforms.
- Transitional impacts of Security of Payment changes.
- Ongoing national movement toward harmonisation.
Explore Practical Guidance: Construction →
Corporations Law Developments 2025
There were several important developments in Australian Corporations law in 2025, reflecting an increased focus on governance and disclosure.
The commenced operation, requiring the first group of large in-scope corporate entities to prepare and submit annual sustainability reports disclosing climate-related risks and opportunities, greenhouse gas emissions, climate-related governance, strategy and risk-management processes and scenario analysis of climate change resilience.
These operate in parallel with their financial reporting obligations under Ch 2M of the Corporations Act.
Group 1 entities must submit sustainability reports for financial years commencing on or from 1 January 2025, with other in-scope entities to be phased in from 1 July 2026 and 1 July 2027, however entities currently out of scope may also choose to submit voluntary sustainability reports complying with all relevant requirements.
Both the Federal Government and ASIC have moved forward with a new regulatory framework for digital assets. Treasury released the draft Treasury Laws Amendment (Regulating Digital Asset, And Tokenised Custody, Platforms) Bill 2025 and explanatory materials for public consultation.
This legislation proposes to introduce two new categories of financial products under the Corporations Act to be brought within the existing AFSL regime, namely Digital Asset Platforms (DAPs) and Tokenised Custody Platforms (TCPs).
The Draft Bill focuses on the platforms themselves, and underlying digital assets or tokens would remain subject to existing provisions as ‘financial products.
ASIC has consulted on and updated INFO 225: Digital Assets: Financial Products and Services and issued a class non-action letter for all Australian providers of financial services involving digital assets, to assist with the transition to the new regime.
In addition, reforms to expand and overhaul substantial holding disclosure were introduced into Parliament in September via Schedule 1 of the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Bill 2025, which remains before the Senate and is expected to be passed by year end and commence 12 months after Royal Assent.
The Bill introduces four key reforms to enhance transparency in derivatives disclosure:
- substantial holding notices will need to include equity derivatives positions;
- the tracing notice provisions will be significantly broadened;
- listed foreign entities will be subject to the same regime as domestic corporates; and
- ASIC will have stronger powers to enforce disclosure compliance.
2026 Watch List
- Further ASIC guidance on digital assets.
- Expansion of sustainability reporting obligations.
- Implementation of holding disclosure reforms.
Explore Practical Guidance: Corporations →
Cybersecurity, Data Protection & Privacy
Australia’s privacy and data landscape shifted markedly this year, introducing a new era of privacy law.
Tranche 1 Privacy Act reforms:
- expanded the Office of the Australian Information Commissioner (OAIC) powers;
- enabled emergency information-sharing after eligible data breaches;
- introduced a Children’s Online Privacy Code;
- strengthened civil penalties; and
- required greater transparency around automated decision-making that uses personal information, alongside new “doxxing” offences.
In parallel, a new statutory tort of serious invasion of privacy now gives individuals a direct cause of action for intrusion upon seclusion or misuse of private information where a reasonable expectation of privacy exists, the conduct is intentional or reckless, and the invasion is serious, with courts empowered to award damages, injunctions and correction orders.
For Australian Privacy Principles (APP) entities, the practical to-do list includes updating privacy policies and automated decision making (ADM)/artificial intelligence (AI) disclosures, standing up for children’s privacy governance, and preparing for litigation-ready privacy assessments.
Looking ahead, Tranche 2 of the privacy reforms are set to turn guidance into firmer rules, especially for high-risk AI and automated decisions. Expect clearer duties around minimising data, handling biometrics and de-identified data, and possibly new rights like deletion and data portability.
On cybersecurity, the Cyber Security Act 2024 (Cth) and the Security of Critical Infrastructure (SOCI) amendments:
- set minimum security standards for consumer smart devices;
- mandated ransomware/extortion payment reporting for certain entities;
- created a Limited-Use obligation to support frank incident coordination with government; and
- established a no-fault Cyber Incident Review Board—alongside uplifts to critical-infrastructure and telecoms security duties.
At the same time, AI law is converging on risk-based guardrails for high-risk systems, with a whole-of-economy framework taking shape while sectoral streams progress and government tighten its own responsible-AI rules (transparency statements, APS plans and technical standards).
Related: Your free whitepaper: Developing or Procuring AI? Here's What You Need to Know
Expect a continued push toward enforceable AI governance and auditability; in the meantime, organisations should map ransomware-reporting thresholds, uplift supplier and product assurance, and align AI governance with emerging expectations.
In 2026, the legal focus will be on proof, not promises. Regulators are likely to expect outcome-based assurance - auditable evidence that cyber, and AI controls work in practice, aligned with emerging international standards.
Legal teams should plan for privileged assurance reviews, tighter board reporting, stronger vendor attestation clauses, and litigation-ready records that show systems are secure, explainable and compliant before a regulator or plaintiff comes knocking.
2026 Watch List
- Tranche 2 privacy reforms (biometrics, ADM, data minimisation).
- Enforcement-ready AI governance obligations.
- Cyber Incident Review Board commencement.
- Heightened regulatory expectations for “outcome-based assurance”.
Explore Practical Guidance: Cybersecurity, Data Protection & Privacy →
Dispute Resolution
For Australian courts and tribunals, 2025 was a year of incremental and significant change. The growing role of GenAI in legal practice prompted a series of judicial responses - most notably in New South Wales, where the Supreme Court introduced Practice Note SC Gen 23 alongside amendments to the Uniform Civil Procedure Rules 2005.
These measures regulate the use of GenAI in civil proceedings and impose prohibitions and obligations on its use.
In a similar vein, Queensland Courts have issued practice directions to address the risk of using Gen AI in litigation, including Supreme Court Practice Direction 5 of 2025, which imposes obligations on parties and practitioners in preparing written submissions.
Looking to 2026, both the Federal Court of Australia and courts in South Australia have engaged in consultation with the profession this year with a view to formulating their response to the use of Gen AI and are likely to regulate the use of this technology in the year ahead by publishing practice notes or guidelines or by amending their court rules.
For an overview of the regulation of Gen AI in Australian courts and tribunals, Practical Guidance subscribers can review our Guidance Note on Artificial intelligence and tech-assisted document review and our Toolkit on Generative AI in civil litigation.
More broadly, 2025 also saw substantial procedural reform. The Federal Circuit and Family Court of Australia and the Supreme Court of Victoria each introduced new or revised rules - the Federal Circuit and Family Court of Australia (Division 2) (General Federal Law) Rules 2025 (Cth) and the Supreme Court (General Civil Procedure) Rules 2025 (Vic) - which commenced in September.
In the County Court of Victoria, procedures in each of the Common Law Division and the Commercial Division were significantly overhauled through the publication of Common Law Division Practice Note PNCLD 1-2025 (Second revision) and Commercial Division Omnibus Practice Note PNCO 1-2025.
2026 Watch List
- National alignment on GenAI court rules.
- Continued reform of civil procedure frameworks.
Explore Practical Guidance: Dispute Resolution →
Family Law Reforms in Australia (2025 Review)
In 2025, Australia’s family law system underwent further extensive reforms, building on the changes that took effect in 2024.
The Family Law Amendment Act 2024 (Cth) commenced on 10 June 2025, further modernising the Family Law Act 1975 (Cth) to make family law more accessible, consistent and protective of vulnerable parties.
A key reform is the enhanced definition of economic and financial abuse, recognising non-physical forms of family violence and expanding the scope for protective responses.
The Act also abolishes mandatory counselling for couples married less than two years, simplifying the divorce process and reducing emotional and procedural barriers.
Significant amendments to property settlements have clarified how courts assess and divide assets. Under the reforms, a property adjustment will only be made if it is just and equitable, with a structured four-step approach not guiding the identification of property, liabilities, contributions, and future circumstances.
For the first time, courts may make specific orders about companion animals, acknowledging their emotional significance. The impact of family violence and the need for stable housing for children are now explicit considerations in both property and maintenance matters.
Procedural efficiency is another focus.
The reforms extend the less adversarial approach from child-related proceedings to certain non-child matters, promote clear duties of disclosure in property cases, and streamline arbitration by removing unnecessary distinctions.
New provisions also enhance the protection of confidential communications and clarify costs orders, including those involving independent children’s lawyers.
For practitioners, these changes demand close attention to new definitions, processes, and ethical duties with the 2025 reforms reflecting a broader shift toward a simpler, safer, and more compassionate family law system, ensuring decisions are fair, transparent, and responsive to the realities of modern family life.
2026 Watch List
- Flow-on procedural efficiencies.
- Further reform proposals for parenting and property matters.
Explore Practical Guidance: Family →
Insolvency and Restructuring
This year has seen continued evolution in Australia’s insolvency landscape, with courts clarifying key aspects of restructuring, safe harbour, and fiduciary duties.
Use of the 2021 small business restructuring provisions continued to rise in 2025, making it the second most common form of external administration in the 2024/25 financial year.
This has been accompanied by more cases, including one confirming that s 553C insolvency set off applies to restructuring plans (SKJ Qld Pty Ltd v Turul Building Services & Anor (No. 3) [2025] QDC 35).
Anecdotal evidence suggests greater use of the 2017 safe harbour provisions by company directors.
Although ASIC updated Regulatory Guide 217 in December 2024 to clarify their operation, uncertainty remains due to the absence of case law.
However, a disciplinary proceeding has made it clear that a registered liquidator should not accept a liquidation appointment following the provision of safe harbour advice (FQGW and A committee convened under section 40-45 of the Insolvency Practice Schedule (Corporations) [2025] ARTA 218).
The first major case of 2025 saw the High Court confirm that a successor trustee does not owe a fiduciary obligation to a former trustee (Naaman v Jaken Properties Australia Pty Ltd [2025] HCA 1).
This means a liquidator or administrator appointed to a company ejected as trustee may need to take urgent court action where there are concerns of asset dissipation.
In what serves as a warning to liquidators, the Full Court of the Federal Court upheld the dismissal of voidable transaction proceedings which were not served within time (Re Cussen, Monarch Tower Pty Ltd (In Liq) [2025] FCAFC 137). The Court took a dim view of the liquidator’s decision to deliberately delay service for strategic reasons.
There were several unfavourable decisions for liquidators for unreasonable director related transaction claims, including two at the appellate level.
Related: The Importance of Background Checks for Company Directors
The Full Court of the Federal Court allowed one defendant’s appeal principally due to holes in the liquidator’s evidence (CEG Direct Securities Pty Ltd v Cooper as liquidator of Runtong Investment and Development Pty Ltd (in liq) [2025] FCAFC 47).
The NSW Court of Appeal also overturned a finding that loan repayments were unreasonable director-related transactions (Changela v Dracoma Pty Ltd [2025] NSWCA 186). In another case, a claim based on payments through an intermediary to a director’s mother failed (Yang v Wong, in the matter of Axis North Pty Ltd (Receiver and Manager Appointed) (in liq) (No 2) [2025] FCA 693).
In a significant decision concerning creditor schemes, the Federal Court declined to approve a scheme between Twinza Oil and senior lenders (Re Twinza Oil Ltd (Recs and Mgrs Apptd), Twinza Oil Ltd (Recs and Mgrs Apptd (No 2) [2025] FCA 1325).
This followed various applications in the lead up to the approval hearing, including a failed application to the Takeovers Panel. Objectors holding equity interests successfully opposed the scheme, with the Court finding that Twinza Oil had not discharged its onus of proving that the objectors had no economic interest in the scheme, there being deficiencies in the company’s valuation evidence.
As far as legislative change is concerned, in 2025, the Government consulted on reforms to prevent misuse of the Fair Entitlements Guarantee.
However, no bill has yet been forthcoming. Nor, for that matter, have there been bills for 2024 proposals to introduce key reforms to bankruptcy law including a new minimal asset procedure.
2026 Watch List
- Legislative action on Fair Entitlements Guarantee misuse.
- Progress on bankruptcy reforms.
- Continued growth in restructuring pathway use.
Explore Practical Guidance: Corporations →
Personal Injury Law Updates 2025
In 2025, there was further significant development in Australia’s institutional child sexual abuse law, with more expected in 2026.
Nearly a year after the High Court’s decision in Bird v DP (2024) 419 ALR 552, the Justice Legislation Amendment (Vicarious Liability for Child Abuse) Bill 2025 was introduced in Victoria in November.
The Bill aims to extend vicarious liability to relationships “akin to employment,” broadening the scope of potential liability for institutions, and is expected to commence in 2026.
In New South Wales, the High Court has reserved its decision in AA v The Trustees of the Roman Catholic Church for the Diocese of Maitland-Newcastle (Case No. S94/2025).
At first instance in AA v Trustees of Roman Catholic Church for Diocese of Maitland-Newcastle [2024] NSWSC 1183 v, Her Honour Schmidt AJ found that the defendant breached a duty of care owed by it to the plaintiff and also held it vicariously liable for the assaults.
On appeal to the Court of Appeal, it was accepted that judgment based on vicarious liability could not stand following the decision in Bird v DP (2024) 419 ALR 552.
The Court of Appeal allowed the appeal: Trustees of the Roman Catholic Church for the Diocese of Maitland-Newcastle v AA [2025] NSWCA 72[BN1], and AA sought leave to appeal to the High Court.
This was granted and has now been heard by the High Court. This decision will be of great interest to practitioners, with the High Court to apply its own decision regarding vicarious liability as set out in Bird v DP (2024) 419 ALR 552.
In Queensland, no formal moves have been made by the legislature to expand the doctrine of vicarious liability articulated in Bird v DP. Queensland has seen development in institutional abuse in relation to permanent stays of proceedings.
The High Court’s decision in Willmot v State of Queensland [2024] HCA 42, which was heard at first instance and on appeal in Queensland, is of particular significance. In Wilmot, the High Court established that the granting of permanent stays will only be granted where the delay has caused prejudice so severe that a fair trial is impossible.
This high threshold will likely open the door in 2026 and beyond for abuse survivors pursuing historical actions in situations where material witnesses may be deceased and significant amounts of evidence have been lost.
Collectively, the developments across jurisdictions signal a maturing national approach to institutional liability, harmonising principles of justice and responsibility ahead of further legislative reform anticipated in 2026.
2026 Watch List
- High Court decision in AA v Trustees.
- Legislative reforms following Bird v DP
- Broader institutional liability reforms.
Explore Practical Guidance: Personal Injury NSW →
Explore Practical Guidance: Personal Injury QLD →
Explore Practical Guidance: Personal Injury VIC →
Property Law Changes in 2025 across Australia
Queensland property law entered a new era on 1 August 2025 with the commencement of the Property Law Act 2023 (Qld) - the most far-reaching reform in over five decades.
The Act introduced a new comprehensive seller disclosure framework for existing lots, some major changes to leasing laws and practices, and a range of other reforms affecting property settlements, easements, and limitation periods.
Related: Be Prepared for Significant Changes to Queensland Property Law | Property Law Act 2023 (QLD).
2025 marked the first time that electronic conveyancing became available across the entirety of Australia, with e-conveyancing enabled mortgage transactions commencing in the Northern Territory.
Other states and territories continued to expand their e-conveyancing capabilities, including transfers of land becoming available for electronic lodgement generally in Tasmania and for foreign buyers in Western Australia, and improved caveat functionality in New South Wales.
Our E-conveyancing Topic, starting with E-conveyancing fundamentals, looks at e-conveyancing as a whole, as well as providing jurisdiction specific resources. E-conveyancing functionality will likely continue to expand in 2026 and beyond, and interoperability potentially expanding the market if current technical hurdles can be surmounted.
Housing affordability continued to be a significant issue across Australia, with flow on effects into property development, construction and foreign investment.
The Commonwealth Help to Buy Scheme and Home Guarantee Scheme, together with state and territory level initiatives like broader stamp duty relief or concessions for first home buyers in Queensland and Western Australia and extensions of first home owner grants in the Northern Territory, aim to provide targeted relief for first home buyers.
Other measures, like the foreign buyer ban (with limited exceptions) for existing residential dwellings and better Build-to-Rent incentives, also sought to address other issues within the housing market. States, like New South Wales and Victoria, either enacted or are looking to enact changes to planning legislation to give a greater focus to affordable housing objectives.
Affordability issues will almost certainly continue in 2026, with the long-term effects of the various initiatives and incentives yet to be seen, as well as further legislative and regulatory responses likely.
AML/CTF reforms are set to commence in 2026, with Tranche 2 entities expected to comply from 1 July 2026. Practitioners assisting with certain property transactions, together with other legal service providers, are captured as Tranche 2 entities and will need to enrol with AUSTRAC as well as have all necessary compliance and other systems in place.
Other participants in the property industry that broker the sale, purchaser or transfer of real estate (eg real estate agents) or conduct their own sales or transfers in the course of business of selling real estate without an independent real estate agent (e.g. property developers) are also Tranche 2 entities.
Certain acquisitions of interests in land will be captured by the merger reforms commencing 1 January 2026.
While exemptions have been introduced for some acquisitions, other non-exempt acquisitions that meet prescribed thresholds or are otherwise identified by legislative instrument must be notified to the ACCC and the relevant processes complied with.
The licencing regime under the Property Developers Act 2024 (ACT) is yet to commence. Once in effect, persons undertaking certain residential development activities, including certain sales of off-the-plan contracts, must have a property developer licence.
It remains to be seen whether the licensing regime will have the desired effects, or if other jurisdictions will introduce similar requirements.
2026 Watch List
- Impact of Help to Buy and state concessions.
- Expansion of e-conveyancing interoperability.
- Commencement of ACT Property Developers Act licensing scheme.
Explore Practical Guidance: Property →
Succession & Aged Care Law Changes 2025
In 2025, Australia’s aged care landscape underwent its most significant reform in decades.
The Aged Care Act 2024 (Cth) and related legislation commenced in November, replacing the 1997 framework and introducing a new rights-based, person-centred approach to care.
The changes stem from the Royal Commission into Aged Care Quality and Safety and aim to place dignity, autonomy, and accountability at the core of the system.
The new Act establishes a Statement of Rights that guarantees every older person’s entitlement to safe, high-quality care and respect for their independence and privacy.
These rights are now enforceable legal standards for providers and aged care workers. Supporting laws, including the Aged Care (Consequential and Transitional Provisions) Act 2024 and Aged Care Rules 2025, ensure continuity, governance reform, and consistent operational obligations.
Listen: LexisNexis Legal Talk Podcast: The New Aged Care Act - What Lawyers Need to Know
For succession and elder law practitioners, the reforms have major implications.
The maximum Refundable Accommodation Deposit (RAD) increased from $550,000 to $750,000, with providers permitted to retain up to 2% annually for five years.
The means-tested care fee cap also rose to $130,000, meaning higher contributions from wealthier residents.
As RAD repayments remain payable to the resident’s estate, lawyers must review liquidity planning, loan documentation, and testamentary provisions to ensure clarity and fairness.
The introduction of the Voluntary Assisted Dying Act 2024 (ACT) in the same month reinforces the broader focus on autonomy and end-of-life choice.
Together, these reforms reshape how lawyers advise clients on aged care, estate management, and capacity issues.
For succession practitioners, 2025 was a year of recalibration. The new framework demands both technical fluency and empathy, ensuring older Australians and their families can navigate aged care and end-of-life decisions with confidence, clarity, and respect.
With constant changes shaping the legal landscape, keeping pace is vital for every legal professional.
2026 Watch List
- Transitional effects of the new aged care framework.
- Continued reform to elder-law intersections.
- Emerging litigation trends in aged care.
Explore Practical Guidance: Succession →
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