Funding higher wages in residential aged care

We are increasing funding for residential aged care providers to help them cover higher award wages for workers and support the increased costs of delivering care and hotelling services for older people.

More funding for residential aged care

Extra funding will support the Fair Work Commission (FWC) decisions on the Aged Care Work Value Case.

From 1 March 2025, we:

From 20 March 2025, we will increase the hotelling supplement rate.

Funding for the Fair Work Commission’s decision for aged care nurses

AN-ACC price

The AN-ACC price is $282.44 from 1 March 2025. This supports providers to deliver higher award wages to registered and enrolled nurses in line with the FWC Aged Care Work Value Case decision on 6 December 2024. More information on the 1 March 2025 AN-ACC price change are available in the Australian National Aged Care Classification (AN-ACC) funding guide.

The average AN-ACC funding will increase from an estimated $303 per resident per day, based on the previous AN-ACC price ($280.01), to an estimated $306 per resident per day at the new AN-ACC price ($282.44) from 1 March 2025.

Additional funding to support the decisions on the FWC Aged Care Work Value Case will be delivered through the AN-ACC funding model from 1 October 2025 and 1 August 2026.

24/7 registered nurse supplement

From 1 March 2025 the 24/7 RN supplement was increased in line with the FWC Aged Care Work Value Case decision on 6 December 2024 to increase award wages for registered nurses. The supplement increased by 2.8% from the previous rates.

See the supplement rates in the Schedule of Subsidies and Supplements.

Funding for the Fair Work Commission’s Stage 3 decision

Hotelling supplement

From 20 March 2025 the hotelling supplement will be $13.46 per resident per day (PRPD). This increase includes $0.86 PRPD to fund the FWC Stage 3 decision, as well as $0.05 PRPD for standard indexation.

From 1 July 2025 the hotelling supplement increases by a further $2.14 PRPD , including $0.25 PRPD to fund the remainder of the FWC Stage 3 decision and $1.89 PRPD to fund higher hotelling costs identified by the Independent Health and Aged Care Pricing Authority.

See the supplement rate in the Schedule of Subsidies and Supplements.

IHACPA funding recommendations

The new AN-ACC price has been informed by the recommendations of the Independent Health and Aged Care Pricing Authority (IHACPA).

Learn more

For more information see:

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