About the Australian National Aged Care Classification funding model

The Australian National Aged Care Classification (AN-ACC) funding model provides equitable funding to registered providers to deliver care to older people living in approved residential care homes.

About AN-ACC

The AN-ACC funding model is used to provide subsidies for care services in residential aged care homes to registered providers.

It works by applying weightings or National Weighted Activity Units (NWAU) to the AN-ACC price.

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

The NWAU is a measure of care service activity used to determine funding for residential care homes.

See the Schedule of Subsidies and Supplements for the current AN-ACC price and NWAUs.

Funding components

The AN-ACC funding model consists of the following components to ensure subsidies meets the cost of delivering care.

  • Base Care Tariff (BCT) subsidy – fixed funding for homes, based on location and specialisation status such as for homeless or remote Aboriginal and Torres Strait Islander people
  • AN-ACC classification subsidy – variable funding based on the individual care needs of residents.

See AN-ACC daily basic subsidy for more information.

Independent pricing analysis

The Independent Health and Aged Care Pricing Authority (IHACPA) provides annual AN-ACC price recommendations to the government.

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

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

AN-ACC Transition Fund

The AN-ACC Transition Fund is available until 30 September 2026 to support the viability of providers operating homes in specific thin markets.

These include homes with specific characteristics that do not fit into the profile of the current BCT categories, such as:

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

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

Reporting

Registered providers must report on residential care income and expenses through the annual Aged Care Financial Report (ACFR) and the Quarterly Financial Report (QFR). 

See reporting for residential aged care for more information.

More information

For more information see:

Date last updated:

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