The Albanese Government is continuing to support the aged care sector to deliver better quality care for older Australians, with increases to vital funding starting in the coming weeks.
From 1 October 2025, the Australian National Aged Care Classification (AN-ACC) price will increase to $295.64 per resident, per day, providing more essential support for the over 200,000 older people in residential aged care.
From 20 September 2025, the hotelling supplement will increase by 42 per cent from $15.60 to $22.15 per resident, per day. This will help providers cover everyday essentials like food, cleaning and laundry so residents continue to receive safe, high quality services.
These changes are part of our Government’s continuing 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.
The Government’s updates to AN-ACC fixed and variable funding categories will better align funding with costs to meet residents' care needs across Australia, based on the Independent Health and Aged Care Pricing Authority's independent advice.
Care minutes for each AN-ACC class will also be adjusted from 1 October, to align with the AN-ACC funding changes.
Importantly, sustainable aged care funding will help drive investment in new beds, ease pressure on hospitals, and ensure older Australians can access care where and when they need it.
In addition, the AN-ACC Transition Fund will be extended for another 12 months to support smaller providers, especially those in remote and regional communities, so that older Australians can access quality care no matter where they live. Eligible providers will be invited to apply for grants shortly.
For more information, visit the Department of Health, Disability and Ageing website.
Quotes attributable to Minister for Aged Care and Seniors Sam Rae:
"The Albanese Labor Government is securing a more sustainable aged care sector to deliver the world-class care older Australians deserve.
“This announcement means more funding for aged care homes, supporting higher wages for workers and better care for our loved ones.”