Impact Analysis of Alternative Arrangements for Allocating Residential Aged Care Places

The Legislated Review of Aged Care 2017 (Tune Review) recommended changes to how we allocate residential aged care places. We are undertaking an impact analysis to understand the implications on stakeholders of potential changes to the place allocation approach. Find out more about this analysis.

What is the impact analysis?

The impact analysis is part of our work to improve choice for residential aged care.

As part of the 2018–19 Budget More Choices for a Longer Life package, the Government provided in-principle support to change how we allocate residential aged care places to enable greater choice for consumers. Places are currently allocated to approved providers through the Aged Care Approvals Round (ACAR). The measure responds to recommendations in the Tune Review.

Why are we doing the analysis?

The Tune Review made 3 recommendations in this area:

  • Discontinue the ACAR for residential care places. Instead, assign places directly to consumers within the residential care cap. Changes should take effect 2 years after announcement (Recommendation 3).
  • Ensure continuing supply of residential care services in areas with limited choice and competition, once the ACAR stops (Recommendation 4)
  • Review how to ensure adequate supply and equitable access to residential respite care (Recommendation 8b).

Who is working with us?

The impact analysis is being independently undertaken by:

  • the Centre for Health Economics Research and Evaluation (CHERE) at the University of Technology Sydney
  • StewartBrown, an aged care accounting and business advisory firm

We consulted the public through a public discussion paper, jurisdictional forums and teleconferences in non-metropolitan areas.

Almost 250 stakeholders across the country attended the forums and 59 written responses to the discussion paper were received. This included representation from various sectors:

  • aged care
  • health
  • finance
  • state/territory and local governments

You can read a summary of feedback from the forums and see written responses (where respondents provided permission to publish) on our consultation hub.

What happens next?

We are currently considering feedback from the consultation process.

We have not made any decisions yet about changes to how we allocate residential aged care places.


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Contact for impact analysis of alternative arrangements for allocating residential aged care places

Contact us with questions about the impact analysis project.

ACARImpactAnalysis [at]

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Last updated: 
24 January 2020

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