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 care services.

About AN-ACC

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

  • location
  • service type 
  • each resident's care needs.

From 1 October 2024 the AN-ACC price is $280.01.

The AN-ACC funding model 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 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.

The individual care needs of residents are determined through an independent assessment process

The resident is then assigned an AN-ACC classification which is used to determine care funding. 

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

For detailed information on the AN-ACC funding model, check the AN-ACC funding guide.

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 funding to support providers to deliver care minutes. From 1 October 2024, the care minutes responsibility is based on a sector-wide average of 215 minutes of care per resident per day, including 44 minutes of care time delivered by a registered nurse.

Individual supplements such as oxygen, enteral feeding, veterans and accommodation will continue on top of AN-ACC funding.

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

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) provides annual AN-ACC price recommendations.

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 IHACPA’s pricing activities.

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, ensuring they could transition smoothly from the Aged Care Funding Instrument (ACFI) to AN-ACC with no impact on their funding. 

From 1 July 2024, we will continue to offer more targeted support to residential aged care services with specific characteristics who do not fit into the profile of the current BCT categories, such as:

  • being located in an isolated community
  • being a larger service in a remote and very remote location.

We identified eligible providers and invited them to apply for the 2024–25 AN-ACC Transition Fund grant opportunity.

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.

Contact

You can send a general enquiry by completing our online enquiries form.

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