About the Australian National Aged Care Classification funding model

The Australian National Aged Care Classification (AN-ACC) funding model provides equitable funding to approved providers to deliver care to residents living in residential aged services.

What is AN-ACC

The AN-ACC funding model provides subsidies to approved aged care providers based on the type of service and each residents’ care needs.

An independent assessor assesses residents’ care needs for care funding purposes.

Care planning is not part of the AN-ACC assessment process and remains the provider’s responsibility.

National Weighted Activity Units

AN-ACC applies weightings or National Weighted Activity Units (NWAU) to the AN-ACC price. The NWAU is a measure of a care service activity expressed as a common unit. The AN-ACC price is the price of a unit of care, or 1.00 NWAU.

The AN-ACC price includes additional funding to increase average care minutes to 200 minutes, including 40 minutes with a registered nurse, and incorporates the previous: 

  • Aged Care Funding Instrument (ACFI) basic subsidy funding 
  • homeless and viability supplements 
  • 2021 Basic Daily Fee supplement. 

Individual supplements such as oxygen, enteral feeding, veterans and accommodation will continue. 

See the schedule of subsidies and supplements for the current AN-ACC price.

AN-ACC funding components

AN-ACC provides funding through 3 components:

  1. Base Care Tariff subsidy – fixed funding for services based on location and specialisations for homelessness or remote Aboriginal and Torres Strait Islander persons
  2. AN-ACC classification subsidy – variable funding based on the individual care needs of residents
  3. initial entry adjustment payment for transitioning a permanent resident into a service.

Residential respite funding

Residential respite care funding consists of 2 components:

  1. Base Care Tariff subsidy – fixed funding reflecting the characteristics of the service, identical to Base Care Tariff subsidy for permanent residents
  2. Respite classification subsidy – variable funding based on the respite care needs of the resident.

A respite accommodation supplement is paid to support accommodation costs for all residential respite residents.

See residential respite care subsidy and supplement rates in the schedule of subsidies and supplements.

Independent pricing analysis

The Independent Health and Aged Care Pricing Authority (IHACPA) will provide annual AN-ACC price recommendations from 1 July 2023 onwards.

IHACPA may also recommend changes to the AN-ACC model such as changes to the NWAU values, Base Care Tariffs and AN-ACC classifications.

See the IHACPA website for more information on pricing updates.

Claims and payments

Services Australia pays AN-ACC subsidies to approved providers. Providers should submit their claims for payments as soon as possible to ensure quick processing. 

Providers can use the Services Australia Aged Care Provider Portal to make online claims for AN-ACC subsidies. 

AN-ACC Transition Fund

Approved providers who receive less funding under AN-ACC than their ACFI base may be eligible for support through the AN-ACC Transition Fund. The fund ensures providers can adjust business operations and transition smoothly while continuing to deliver high quality, safe care. 

Application for the AN-ACC Transition Fund is by invitation only.   

See the AN-ACC Transition Fund fact sheet for more information. 

Reporting

Approved providers are required to report on residential care income and expenses through the annual Aged Care Financial Report (ACFR) and the Quarterly Financial Report (QFR). Providers are also expected to be transparent with aged care residents and their nominated representatives in developing care plans and delivering care.

Australian National Aged Care Classification contact

Get in touch with the Australian National Aged Care Classification (AN-ACC) team.
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