Aged care providers are currently paid in advance at the start of each month based on estimates of the services they deliver.
During the transition period we will gradually reduce advance payments and increase payments on services delivered, until all funding is paid in arrears from 30 June 2029.
New approved residential aged care homes that become operational on or after 1 July 2027 will be paid on services delivered.
This change will:
- simplify the payment process
- reduce administration
- make it easier to manage funding.
This change applies to providers funded under the Australian National Aged Care Classification (AN-ACC) and related residential subsidies and supplements.
Providers will not see any change to the total funding amount they receive.
It will not apply to National Aboriginal and Torres Strait Islander Flexible Aged Care Program (NATSIFACP) and Multi-Purpose Service Programs (MPSP) providers who deliver residential aged care.
Find out how we are transitioning to residential aged care payments for services delivered from 1 July 2027.
