Overview
We have made 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
The hotelling supplement increased from $15.60 per resident per day (PRPD) to $22.15 PRPD on 20 September 2025.
This increase funds the higher everyday living costs for cleaning, catering and laundry services, which was identified in the Independent Health and Aged Care Pricing Authority’s (IHACPA) pricing advice.
From 2026, the hotelling supplement will be indexed annually on 20 September following consideration of IHACPA’s pricing advice.
AN-ACC
The AN-ACC price increased from $282.44 to $295.64 on 1 October 2025. The National Weighted Activity Unit (NWAU) values for the classes (variable funding) and Base Care Tariffs (fixed funding) were also adjusted on 1 October 2025 to better align funding with costs. These changes were recommended by IHACPA’s pricing advice. The average funding is expected to increase from an estimated $306 PRPD to $316 PRPD.
| BCT Category | Average AN-ACC funding per resident per day |
|---|---|
| Total sector | $316 |
| Standard BCT (MM 1) | $312 |
| Standard BCT (MM 2–3) | $316 |
| Standard BCT (MM 4–5) | $328 |
| Standard BCT (MM 6–7) | $379 |
| Specialised homeless | $417 |
|
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 was funded under the Aged Care Outbreak Management Support Supplement until 30 September 2025.
Also see the Australian National Aged Care Classification (AN-ACC) funding guide for more information.
24/7 registered nurse supplement
Rates for the 24/7 registered nurse (RN) supplement were adjusted on 1 October 2025 to align with changes to RN costs.
See Schedule of Subsidies and Supplements for Aged Care for the 24/7 RN supplement rates.
Care minutes
Care minutes for each AN-ACC class were adjusted to align with variable funding changes on 1 October 2025.
See the Care minutes guide for the care minutes associated with each AN-ACC class.
Also, from 1 October 2025, 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.
See Changes coming to care minutes funding for more information.
AN-ACC Transition Fund
The AN-ACC Transition Fund has been 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.
Value of AN-ACC price attributable to award wage increases
Of the 1 October 2025 AN-ACC price:
- $6.25 is attributable to the 1 October 2025 Fair Work Commission (FWC) Stage 3 award wage increases for aged care workers
- $1.88 is attributable to the 1 October 2025 FWC award wage increases for aged care nurses
- $0.33 is attributable to the 1 August 2026 FWC award wage increases for aged care nurses.
For more information contact enquiries.ihacpa@ihacpa.gov.au.
More information
For more information see: