More funding for residential aged care
From 20 September 2024, we are increasing the hotelling supplement.
From 1 October 2024, we are:
- increasing the Australian National Aged Care Classification (AN-ACC) price
- changing the AN-ACC Base Care Tariff (BCT) structure and funding for services in Modified Monash (MM) 1 to 5 locations, through changes to National Weighted Activity Unit (NWAU) weightings
- changing AN-ACC class funding through changes to NWAU weightings
- changing care minutes associated with each AN-ACC class
- adjusting the 24/7 registered nurse (RN) supplement.
The average combined AN-ACC and hotelling supplement funding will increase by approximately 13%, from $280.68 per resident per day in 2023-24 to an estimated $317.55 per resident per day in 2024-25.
The extra funding supports the Fair Work Commission Stage 3 decision on the Aged Care Work Value Case and other costs.
AN-ACC price
The AN-ACC price will increase to $280.01.
BCT structure and funding
The revised BCT structure and funding for non-specialised services located in MM 1 to 5 better aligns funding with costs at different locations.
Prior to 1 October 2024, 85% of services were grouped together in a single MM 1 to 4 BCT category, and received the same BCT funding, despite evidence that non-metropolitan services face different costs and poorer financial outcomes than those in major cities.
From 1 October 2024, BCT funding groups together:
- services in MM 2 to 3 areas
- services in MM 4 to 5 areas.
NWAUs for these BCT categories are also changing to reflect the higher cost of delivering care outside metropolitan areas.
MMM Location | Current BCT structure | Current NWAU | Current funding per occupied place | New BCT structure from 1 October 2024 | New NWAU from 1 October 2024 | Funding per occupied place from 1 October 2024 |
|---|---|---|---|---|---|---|
MM 1 | MM 1 to 4 | 0.49 | $124.37 | MM 1 | 0.50 | $140.01 |
MM 2 | MM 1 to 4 | 0.49 | $124.37 | MM 2 to 3 | 0.55 | $154.01 |
MM 3 | MM 1 to 4 | 0.49 | $124.37 | MM 2 to 3 | 0.55 | $154.01 |
MM 4 | MM 1 to 4 | 0.49 | $124.37 | MM 4 to 5 | 0.57 | $159.61 |
MM 5 | MM 5 | 0.55 | $139.60 | MM 4 to 5 | 0.57 | $159.61 |
AN-ACC classification funding
Funding for the AN-ACC classes is changing to reflect the actual cost of delivering care at the new AN-ACC price, to:
- increase funding for residents in lower care classes, such as residents with low or medium cognition scores (classes 3 to 8)
- decrease funding for residents in higher care classes, such as those with limited mobility (classes 9 to 13).
| AN-ACC class | Current NWAU | New NWAU from 1 October 2024 | Current funding per resident per day | Funding from 1 October 2024 |
|---|---|---|---|---|
| Class 1 | 1.0 | 0.80 | $253.82 | $224.01 |
| Class 2 | 0.19 | 0.19 | $48.23 | $53.20 |
| Class 3 | 0.31 | 0.37 | $78.68 | $103.60 |
| Class 4 | 0.21 | 0.25 | $53.30 | $70.00 |
| Class 5 | 0.37 | 0.44 | $93.91 | $123.20 |
| Class 6 | 0.35 | 0.40 | $88.84 | $112.00 |
| Class 7 | 0.49 | 0.55 | $124.37 | $154.01 |
| Class 8 | 0.54 | 0.64 | $137.06 | $179.21 |
| Class 9 | 0.54 | 0.52 | $137.06 | $145.61 |
| Class 10 | 0.87 | 0.70 | $220.82 | $196.01 |
| Class 11 | 0.83 | 0.66 | $210.67 | $184.81 |
| Class 12 | 0.81 | 0.66 | $205.59 | $184.81 |
| Class 13 | 1.0 | 0.80 | $253.82 | $224.01 |
| Class 98 | 1.0 | 0.80 | $253.82 | $224.01 |
| Class 99 | 0.54 | 0.64 | $137.06 | $179.21 |
| Class 100 - Respite | 0.404 | 0.479 | $102.54 | $134.12 |
| Class 101 – Respite | 0.304 | 0.365 | $77.16 | $102.20 |
| Class 102 – Respite | 0.404 | 0.479 | $102.54 | $134.12 |
| Class 103 – Respite | 0.864 | 0.691 | $219.30 | $193.49 |
Care minutes
The new $280.01 AN-ACC price reflects the increased care minutes responsibility from 1 October 2024 to a sector-wide average of 215 care minutes per resident per day, including 44 minutes of direct RN minutes.
Changes to the care minutes allocations associated with each AN‑ACC class ensures that funding matches the cost of care.
| AN-ACC class | Current total care minutes allocation | Total care minutes allocation from 1 October | Current RN-specific minutes allocation | RN-specific minutes allocation from 1 October 2024 |
|---|---|---|---|---|
| Class 1 | 317 | 281 | 57 | 53 |
| Class 2 | 110 | 122 | 30 | 25 |
| Class 3 | 143 | 169 | 32 | 35 |
| Class 4 | 115 | 138 | 28 | 29 |
| Class 5 | 157 | 185 | 39 | 41 |
| Class 6 | 152 | 177 | 34 | 37 |
| Class 7 | 186 | 215 | 36 | 45 |
| Class 8 | 200 | 239 | 38 | 50 |
| Class 9 | 202 | 209 | 46 | 42 |
| Class 10 | 282 | 254 | 56 | 50 |
| Class 11 | 274 | 244 | 41 | 47 |
| Class 12 | 269 | 243 | 42 | 46 |
| Class 13 | 317 | 281 | 57 | 53 |
| Class 101 – Respite | 120 | 163 | 31 | 33 |
| Class 102 – Respite | 165 | 196 | 36 | 42 |
| Class 103 – Respite | 273 | 252 | 48 | 49 |
The new allocations will apply to the October to December 2024 service-level care minutes targets. Service level care minute targets from 1 October 2024 are available on our website and will be available in the Government Provider Management System (GPMS) by the end of the month.
Providers can calculate their targets for the upcoming quarter and onwards using the updated care minutes target calculator.
From 1 October 2024, providers can meet up to 10% of their service-level RN targets with care time provided by enrolled nurses (ENs). For example, for a service with an RN target of 44 minutes, providers can count 4.4 EN minutes.
Hotelling supplement
From 20 September 2024, the hotelling supplement is increasing from $11.24 to $12.55.
This includes $1.09 to support higher award wages from 1 January 2025.
It will increase by a further $1.89 on 1 July 2025 to fund higher hotelling costs.
The increases to support higher award wages and costs are on top of regular indexation that occurs on 20 March and 20 September each year.
See the supplement rate in the Schedule of Subsidies and Supplements.
24/7 registered nurse supplement
From 1 October 2024, the 24/7 registered nurse supplement will:
- reduce and be available only to facilities with 50 residents or less – this reflects the extra residential aged care subsidy, which helps cover the increase to 215 care minutes (including 44 registered nurse minutes)
- change to better align with the revised AN-ACC BCT structure, with separate rates for different MM areas based on the different costs of employing RNs.
The full supplement will be paid at the following rates from 1 October 2024:
| Average no. of residents | MM 1 | MM 2 to 3 | MM 4 to 5 | MM 6 to 7 |
|---|---|---|---|---|
| 1 to 5 | $27,055 | $29,715 | $70,883 | $84,057 |
| 6 to 10 | $27,055 | $29,715 | $60,143 | $71,321 |
| 11 to 15 | $27,055 | $29,715 | $49,403 | $58,585 |
| 16 to 20 | $27,055 | $29,715 | $38,663 | $45,849 |
| 21 to 25 | $24,124 | $26,496 | $27,162 | $32,210 |
| 26 to 30 | $13,167 | $14,461 | $14,825 | $17,580 |
| 31 to 35 | $10,687 | $11,738 | $12,032 | $14,269 |
| 36 to 40 | $8,207 | $9,014 | $9,240 | $10,958 |
| 41 to 45 | $5,727 | $6,290 | $6,448 | $7,646 |
| 46 to 50 | $3,247 | $3,566 | $3,655 | $4,335 |
| More than 50 | 0 | 0 | 0 | 0 |
The reduced‑rate supplement will be paid at the following rates from 1 October 2024:
| Average no. of residents | MM 1 | MM 2 to 3 | MM 4 to 5 | MM 6 to 7 |
|---|---|---|---|---|
| 1 to 5 | $13,528 | $14,858 | $35,442 | $42,029 |
| 6 to 10 | $13,528 | $14,858 | $30,072 | $35,661 |
| 11 to 15 | $13,528 | $14,858 | $24,702 | $29,293 |
| 16 to 20 | $13,528 | $14,858 | $19,332 | $22,925 |
| 21 to 25 | $12,062 | $13,248 | $13,581 | $16,105 |
| 26 to 30 | $6,584 | $7,231 | $7,413 | $8,790 |
IHACPA funding recommendations
The new AN-ACC price, adjustments to BCTs and NWAUs, and the new hotelling supplement rates have been informed by the recommendations of the Independent Health and Aged Care Pricing Authority (IHACPA).
IHACPA developed their advice from cost, time and activity evidence in their 2023 Residential Aged Care Costing Study and other data sources.
For more information, see the Pricing Framework for Australian Residential Aged Care Services 2024–25.
Learn more
For more information see: