Supporting Better Quality Residential Aged Care

Department of Health

The Albanese Government is continuing to support the aged care sector to deliver better quality care for older Australians, with increases to vital funding taking effect in the coming weeks.

From 1 October, the Australian National Aged Care Classification (AN-ACC) price will increase to $303.19 per resident, per day. This will provide more essential support for the more than 200,000 older people in residential aged care.

This additional funding forms part of the Labor’s ongoing response to the recommendations of the Royal Commission into Aged Care Quality and Safety, which called for a funding system that keeps pace with the real cost of care.

For now, the hotelling supplement will remain at its current rate of $22.15 per resident, per day. This supplement helps providers cover everyday items like food, cleaning and laundry for residents.

The Government requested IHACPA undertake a review of the hoteling supplement to ensure it supports the delivery of high-quality care that meets future demand. This review is currently underway and will inform Government decisions on any changes to the supplement.

Labor will continue to invest to keep older Australians receiving the high quality, dignified care they deserve.

This year, the Government will invest $47 billion in aged care. This includes our $1.7 billion investment in the 2026-27 Budget to support the sector to build 5,000 more aged care beds each year through added incentives. The average ‘per resident, per day’ care funding is now around 65 per cent higher than it was in September 2022.

The Government will also maintain current care minute requirements and AN-ACC fixed and variable funding categories. This is based on the Independent Health and Aged Care Pricing Authority’s (IHACPA) advice and aligns funding with the costs of residents’ care across Australia.

Quotes attributable to the Minister for Aged Care and Seniors, Sam Rae MP:

“Making sure older Australians and their families have a quality, affordable and safe aged care system that is properly funded is a priority of the Albanese Government.

“This announcement means more funding for aged care homes, supporting workers and better care for our loved ones.”

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