About new audit requirements
We are updating the way we monitor care minutes in residential aged care homes.
Starting in the Aged Care Financial Report 2025–26, you must prepare and submit a new Care Minutes Performance Statement. You must also obtain and submit an external audit over the Care Minutes Performance Statement.
These new audit requirements are an important part of ensuring reporting about the delivery of care time is accurate. This protects the integrity of the new care minutes supplement and transparency measures, like Star Ratings.
Watch our video for an overview of your new requirements.
The Government has introduced changes to how residential aged care providers are funded, based on their reported care minutes.
From April 2026, funding for non-specialised aged care homes operating in metropolitan, Modified Monash, or MM1 Classification areas will change. Part of the Base Care Tariff is being replaced with a new care minutes supplement, based on your performance against the care minute responsibility.
This funding policy aims to increase care minute compliance and to make sure the government is only paying for delivered care minutes.
To make sure we pay you the right amount, all aged care providers must complete an annual Care Minutes Performance Statement and have it externally audited under the Assurance Standard ASAE 3000.
This statement will cover care time and expenses, registered nurse coverage, and occupied bed days. The first statement will cover the 2025-26 financial year and will be submitted in the Aged Care Financial Report. The department will use this to make sure your care minutes supplement payments for the year were accurate. Completion of the statement will be an ongoing, annual requirement, so that providers receive the correct funding and the department has assurance on what is being reported.
You will need to engage an external auditor to audit the Statement under the ASAE 3000 Standards. You should talk with your existing auditor to see if they can perform this engagement, or if you need to engage another provider.
To prepare for the audit and minimise potential misreporting, you should:
- Stay up to date with regular reporting responsibilities
- Make sure records are complete and stored appropriately and,
- Talk to your auditor early, to find out what they need.
We have published guidelines and a webinar on our website to help you complete the statement and meet the audit requirements. Following these guidelines will make sure the statement is completed correctly and that you receive the right payment.
To learn more about these changes, visit the Department of Health, Disability and Ageing website.
Who is affected
This will be an annual requirement for all residential aged care services, including specialised and non-specialised services, provided at all locations.
When will it start
Providers will need to submit the first Care Minutes Performance Statement as part of the 2025–26 Aged Care Financial Report.
We encourage you to engage an auditor early and appropriately maintain your records to accurately complete your Care Minutes Performance Statement.
What to include
The following data will be needed to complete your Care Minutes Performance Statement:
- quarterly labour costs – direct care (employee and agency)
- labour worked hours direct care (employee and agency)
- monthly 24/7 RN coverage percentage
- quarterly occupied bed days
- quarterly direct care minutes (worked) per occupied bed day.
Refer to our Care Minutes Performance Statement template.
What you need to do
You will need to:
- appropriately maintain your records to accurately complete your Care Minutes Performance Statement for the 2025–26 financial year
- engage a registered company auditor to undergo an audit of the Care Minutes Performance Statement
- submit the audited Care Minutes Performance Statement as part of the Aged Care Financial Report.
In addition, you must continue to report care minutes and 24/7 RN coverage through the Quarterly Financial Report and 24/7 RN Reporting.
Find out more about how to prepare for new reporting requirements.
What auditors need to do
If engaged by a residential aged care provider, you will need to audit their Care Minutes Performance Statement.
The audit must be conducted by a registered company auditor under the assurance standard ASAE 3000 Assurance Engagements Other than Audits or Reviews of Historical Financial Information.
Refer to the interim auditor guidance to support your advice to providers and to understand what is involved in the process.
We have published this interim guidance to ensure providers and their auditors understand their responsibilities as early as possible. This version references the Aged Care Act 1997 and its subordinate legislation pending the introduction of the Aged Care Act 2024. We are currently consulting with accounting professional associations on these materials to make sure they are appropriate. We will update guidance materials following the completion of this consultation and introduction of the new Act and its supporting legislative framework.
Resources
Care Minutes Performance Statement – template
Care Minutes Performance Statement – guidance for providers
Audit requirements for Care Minutes Performance Statement – interim guidance for auditors
Care Minutes Performance Statement – audit report templates
