Ms Lynn said people needed to remember the legislation not only applied to children.
"There has been a bit in the media about the impact of this on children. However, it also includes the elderly and affects us all," she said. "If we see or hear of anything that is happening to an older person and we do nothing about it, we are liable under this Act.
"This is hugely important for the frail and vulnerable in our community," Ms Lynn said.
Age Concern's national office said abuse of the elderly was often overlooked but staff around the country were dealing with on average two cases every day.
Liz Baxendine, the organisation's national president, said it was delighted with the new law saying it would provide greater legal protection for older people while holding individuals to account for the harm they inflicted.
"We hope this penalty will act as a deterrent and may result in a decrease in abuse in this country," Mrs Baxendine said. "It affirms the value of all older people, including the most frail and vulnerable, and reiterates their right to a life free from abuse and neglect."
She said the abuse of older New Zealanders was a serious and often hidden national issue.
"Family members and staff in residential care facilities and hospitals are legally required to intervene if they are aware that an older person they are looking after is being abused or neglected."
