As industries face evolving regulatory landscapes, organisations must adapt to new reforms and increasing scrutiny in several sectors.
Aged care reforms
The Aged Care Act 2024 introduces a registration system for providers, emphasising accountability. Providers must comply with the aged care code of conduct or face penalties, with an expected rise in complaints.
Medicinal cannabis scrutiny
Increased scrutiny of medicinal cannabis prescriptions is expected, especially for online services. Practitioners may face civil claims for inadequate patient care or negligence.
Shift to adversarial litigation
Civil litigation is becoming more adversarial, leading to higher defence costs and prolonged case durations, particularly in healthcare.
Vaping reforms
The Australian government’s vaping reforms, effective July 2024, focus on regulating vaping products and reducing youth exposure. This will likely result in more regulatory investigations and compliance risks.
As these reforms take effect, organisations must stay vigilant and prepared to navigate the increasing regulatory demands and challenges ahead.
Chris Spain Head of Health +61 3 9604 7956 chris.spain@wottonkearney.com
3 standout insights across health
Aged care: Strengthening rights and accountability
Australia’s aged care sector is undergoing major reform with the Aged Care Act 2024, effective July 2025. The new law introduces a registration system for providers, enforces compliance with a strengthened Code of Conduct, and empowers regulators to suspend or revoke registrations.
Complaints and regulatory investigations are expected to rise. Aged care providers, insurers, and legal professionals should prepare for heightened compliance obligations, increased accountability, and potential penalties.
This trend reflects a stronger focus on safeguarding older Australians’ rights and improving care standards.
Medicinal cannabis: Heightened regulatory scrutiny
Medicinal cannabis prescribing is facing closer oversight, with regulators raising concerns about inadequate documentation, follow-up care, and online prescribing services.
The Australian Health Practitioner Regulation Agency and the Medical Board are expected to increase investigations, particularly into telehealth models, while civil claims against practitioners may grow.
Healthcare providers, insurers, and legal advisors should anticipate stricter compliance checks, higher claims risks, and reputational challenges. This trend signals a maturing market under tighter regulatory control, with scrutiny expected to intensify through 2025.
Litigation: A shift to adversarial approaches
Civil litigation is becoming more adversarial, driven by competitive plaintiff firms, expanding interstate practices, and the increased use of videoconferencing and digital evidence.
These changes are contributing to rising defence costs, longer case durations, and higher settlement values, particularly in healthcare disputes where complaints are already on the rise.
Insurers, healthcare organisations, and defence counsel should prepare for prolonged litigation, rising costs, and more aggressive tactics from opposing firms. This trend highlights a challenging claims environment that is likely to persist and intensify.
"2025 has seen an increase in severity in negligence claims in the medical malpractice insurance market… Additionally, an uptick in regulatory intervention has seen healthcare providers being called into regulatory actions and inquiries more frequently."
Australian Healthcare Insurance Market Update 2025, Marsh
Recent Article: Court upholds hospital treatment despite alleged surgical delay
In a decision likely to frustrate plaintiffs pursuing medical negligence claims but offer reassurance to healthcare providers, the South Australian District Court in Toon v Central Adelaide Local Health Network [2025] SADC 98 dismissed a claim over for damages following treatment for compartment syndrome compounded by a closed brachial plexus injury.
The Court found no breach of duty of care or causation, preferring the Respondent’s expert evidence, with the Applicant’s experts described as partisan and unreliable, and combative and argumentative.
While liability was dismissed, damages were assessed at $287,086.88, with future economic loss and interest to be calculated at the date of judgment.
Special Counsel Trudi-Ann Mercurio unpacks the decision, the Court’s approach to expert evidence, and why establishing both breach of duty and causation remains critical in complex medical negligence claims.
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