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 older people living in residential aged care homes.

About AN-ACC

The AN-ACC funding model provides subsidies to approved residential aged care providers based on:

  • location
  • service type
  • the assessed care needs of each resident.

Why it is important

Introduced on 1 October 2022, the AN-ACC funding model is an efficient, transparent and sustainable funding model for residential aged care.

AN-ACC provides equitable funding to residential aged care providers that better matches residents’ needs and the costs of delivering care.

AN-ACC includes funding for palliative care and specialised services for homelessness and remote Aboriginal and Torres Strait Islander people.

AN-ACC subsidies

The AN-ACC funding model provides funding through 3 components:

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

For more detailed information, refer to the AN-ACC funding guide.

AN-ACC price and weightings

From 1 October 2025, the AN-ACC price will increase from $282.44 to $295.64.

The AN-ACC price also includes funding for outbreak management costs, which is funded under the Aged Care Outbreak Management Support Supplement until 30 September 2025.

AN-ACC applies weightings or National Weighted Activity Units (NWAU) to the AN-ACC price. The NWAU is a measure of care service activity used to determine funding for residential aged care services.

The AN-ACC price is the price of a unit of care, or 1.00 NWAU. It is updated annually, in line with pricing advice from the Independent Health and Aged Care Pricing Authority.

The following table includes the estimated average funding per resident per day based on the AN-ACC price and BCT weightings.

BCT Category

Average AN-ACC  funding per resident per day

Total sector

$316

Standard BCT (MM 1)

$312

Standard BCT (MM 2–3)

$316

Standard BCT (MM 4–5)

$328

Standard BCT (MM 6–7)

$379

Specialised homeless

$417

Specialised Indigenous (MM 6)

$454

Specialised Indigenous (MM 7)

$1045

Assessing individual care needs

There are 13 AN-ACC funding classes for permanent residents to meet individual care needs, including a special class for planned admissions for palliative care.

The funding for individual care needs of residents is determined through a residential aged care funding assessment process. The resident is then assigned an AN-ACC classification which is used to determine care funding.

Note: Care planning is not part of the residential aged care funding assessment process and remains the provider’s responsibility.

Residential respite funding

Residential respite care funding consists of 2 components:

  1. BCT subsidy – fixed funding reflecting the characteristics of the service, identical to BCT 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) provides annual AN-ACC price recommendations to Government.

IHACPA may also recommend changes to the AN-ACC funding model, such as changes to the NWAU values, BCT rates and AN-ACC classifications.

For more information about IHACPA's pricing advice and consultations, visit the IHACPA website.

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

The AN-ACC Transition Fund started on 1 October 2022. It provided short-term financial support to eligible residential aged care providers. The grant ensured providers could transition smoothly from the Aged Care Funding Instrument (ACFI) to AN-ACC with no impact on their funding. 

From 1 July 2024, we offered more targeted support to aged care homes with specific characteristics that did not fit into the profile of the current BCT categories, such as:

  • being located in an isolated community
  • being a larger home in a remote or very remote location.

The AN-ACC Transition Fund will be extended for a further 12 months to 30 September 2026 to support the viability of providers operating in these specific thin markets.

We will identify eligible providers and invited them to apply for the 2025–26 AN-ACC Transition Fund grant opportunity when available.

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.

See reporting for residential aged care for more information.

More information

Date last updated:

Help us improve health.gov.au

If you would like a response please provide an email address. Your email address is covered by our privacy policy.