Overview
We have announced changes to:
- the hotelling supplement on 20 September 2025
- the Australian National Aged Care Classification (AN-ACC) funding, care minutes and 24/7 registered nurses supplement on 1 October 2025
- the AN-ACC Transition Fund.
Hotelling supplement
From 20 September 2025, the hotelling supplement will increase from $15.60 per resident per day (PRPD) to $22.15 PRPD.
This increase will fund the higher everyday living costs for cleaning, catering and laundry services, which was identified in Independent Health and Aged Care Pricing Authority’s (IHACPA) pricing advice.
Going forward, the hotelling supplement will be indexed annually on 20 September, following consideration of IHACPA’s pricing advice.
AN-ACC price
The AN-ACC price will increase from $282.44 to $295.64 from 1 October 2025. The average funding is expected to increase from an estimated $306 PRPD to $316 PRPD.
The price increase is consistent with IHACPA’s price recommendation. This includes funding to support Fair Work Commission award wage increases, including:
- Stage 3 for direct care workers on 1 October 2025
- registered and enrolled nurses on 1 October 2025 and 1 August 2026
- Annual Wage Review for all aged care workers.
The price also includes funding for outbreak management costs, which is funded under the Aged Care Outbreak Management Support Supplement until 30 September 2025.
For more information, refer to the Australian National Aged Care Classification (AN-ACC) funding guide.
AN-ACC funding classifications
Variable funding for each AN-ACC class will be adjusted from 1 October 2025 to better align funding with costs. These changes were recommended by IHACPA’s pricing advice.
The table below outlines the AN-ACC classes for permanent care and residential respite and the corresponding National Weighted Activity Unit (NWAU) values and subsidy amounts from 1 October 2025.
| AN-ACC class | Resident description | NWAU | AN-ACC |
| Class 1 | Admit for palliative care | 0.73 | $215.82 |
| Class 2 | Independent without compounding factors | 0.21 | $62.08 |
| Class 3 | Independent with compounding factors | 0.40 | $118.26 |
| Class 4 | Assisted mobility, high cognition, without compounding factors | 0.29 | $85.74 |
| Class 5 | Assisted mobility, high cognition, with compounding factors | 0.43 | $127.13 |
| Class 6 | Assisted mobility, medium cognition, without compounding factors | 0.39 | $115.30 |
| Class 7 | Assisted mobility, medium cognition, with compounding factors | 0.54 | $159.65 |
| Class 8 | Assisted mobility, low cognition | 0.60 | $177.38 |
| Class 9 | Not mobile, higher function, without compounding factors | 0.53 | $156.69 |
| Class 10 | Not mobile, higher function, with compounding factors | 0.59 | $174.43 |
| Class 11 | Not mobile, lower function, lower pressure sore risk | 0.68 | $201.04 |
| Class 12 | Not mobile, lower function, higher pressure sore risk, without compounding factors | 0.66 | $195.12 |
| Class 13 | Not mobile, lower function, higher pressure sore risk, with compounding factors | 0.73 | $215.82 |
| Respite Class 101 | Independent mobility | 0.405 | $119.73 |
| Respite Class 102 | Assisted mobility | 0.574 | $169.70 |
| Respite Class 103 | Not mobile | 0.714 | $211.09 |
|
Base Care Tariff (BCT) funding
Fixed funding categories will be adjusted on 1 October, in line with IHACPA’s pricing advice.
The below tables outline the BCT categories, their corresponding NWAU value and BCT subsidy from 1 October 2025.
| BCT Category | NWAU | Funding per occupied place |
| Standard MM 1 | 0.50 | $147.82 |
| Standard MM 2-3 | 0.53 | $156.69 |
| Standard MM 4-5 | 0.58 | $171.47 |
| Specialised homeless | 0.92 | $271.99 |
| BCT Category | NWAU | Funding per operational place |
| Standard MM 6 – 7 | 0.68 for first 29 places | $201.04 |
| Standard MM 6 – 7 | 0.52 for places 30 and above | $153.73 |
| Specialised Aboriginal and Torres Strait Islander MM 6 | 0.78 | $230.60 |
| Specialised Aboriginal and Torres Strait Islander MM 7 | 1.80 | $532.15 |
|
24/7 registered nurse supplement
The 24/7 registered nurse (RN) supplement rates will be adjusted on 1 October 2025 to align with changes to RN costs.
| Residents | MM 1 | MM 2-3 | MM 4-5 | MM 6-7 |
| >0-5 | $28,786 | $30,536 | $72,840 | $86,378 |
| 6-10 | $28,786 | $30,536 | $61,804 | $73,290 |
| 11-15 | $28,786 | $30,536 | $50,767 | $60,203 |
| 16-20 | $28,786 | $30,536 | $39,731 | $47,115 |
| 21-25 | $25,667 | $27,228 | $27,912 | $33,099 |
| 26-30 | $14,009 | $14,860 | $15,234 | $18,065 |
| 31-35 | $11,370 | $12,062 | $12,364 | $14,663 |
| 36-40 | $8,732 | $9,263 | $9,495 | $11,261 |
| 41-45 | $6,093 | $6,464 | $6,626 | $7,857 |
| 46-50 | $3,454 | $3,664 | $3,756 | $4,455 |
| Residents | MM 1 | MM 2-3 | MM 4-5 | MM 6-7 |
| >0-5 | $14,393 | $15,268 | $36,421 | $43,190 |
| 6-10 | $14,393 | $15,268 | $30,902 | $36,646 |
| 11-15 | $14,393 | $15,268 | $25,384 | $30,102 |
| 16-20 | $14,393 | $15,268 | $19,866 | $23,558 |
| 21-25 | $12,834 | $13,614 | $13,956 | $16,550 |
| 26-30 | $7,004 | $7,431 | $7,618 | $9,033 |
|
Care minutes
Care minutes for each AN-ACC class will be adjusted to align with variable funding changes from 1 October 2025. See below care minutes that will be used to calculate care minutes targets from October – December 2025 onwards.
| Class | Total care minutes | RN minutes |
| Class 2 | 128 | 27 |
| Class 3 | 178 | 36 |
| Class 4 | 150 | 32 |
| Class 5 | 185 | 41 |
| Class 6 | 176 | 37 |
| Class 7 | 215 | 46 |
| Class 8 | 232 | 47 |
| Class 9 | 214 | 44 |
| Class 10 | 229 | 44 |
| Class 11 | 253 | 48 |
| Class 12 | 247 | 47 |
| Class 1 & 13 | 268 | 51 |
| Class 101 | 176 | 37 |
| Class 102 | 223 | 48 |
| Class 103 | 262 | 51 |
Also, from 1 October, care minutes delivered by non-specialised aged care homes in metropolitan areas (MM1) will be linked to their funding from April 2026. Homes will be funded based on how closely they met their care minutes targets in the October – December 2025 quarter onwards. For more information, see Changes coming to care minutes funding.
AN-ACC Transition Fund
The AN-ACC Transition Fund will be extended for a further 12 months to support the viability of residential aged care providers operating in specific thin markets.
Eligible providers will be invited to apply for the new grant opportunity when available.
More information
For more information see: