Subsidy for residential aged care

The Australian Government pays approved providers a subsidy on behalf of each person receiving residential aged care. The Australian National Aged Care Classification (AN-ACC) replaced the Aged Care Funding Instrument (ACFI) on 1 October 2022.

What is the residential aged care subsidy?

The Australian Government pays a subsidy to approved providers for each person in residential aged care.

For respite care, go to residential respite care subsidies and supplements.

Calculating the subsidy

To calculate your total amount of subsidy:

  • start with the AN-ACC daily basic subsidy
  • add any initial entry adjustment payments
  • add any primary supplements
  • subtract any reductions
  • add any other supplements

AN-ACC daily basic subsidy

The AN-ACC daily basic subsidy for permanent care recipients has two components:

  • a variable component based on the care recipient’s AN-ACC classification.
  • a fixed component (Base Care Tariff or BCT) to account for shared costs across all residents which vary by location and type of provider.

View the AN-ACC Base Care Tariff and variable rates in the Schedule of Subsidies and Supplements.

For more information on AN-ACC, see Australian National Aged Care Classification funding model.

Initial entry adjustment payment

This payment is payable each time a permanent care recipient enters a residential aged care facility. It helps to cover costs associated with transitioning a new resident into care.

View the initial entry adjustment payment rate in the Schedule of Subsidies and Supplements.

Primary and other supplements

Supplements provide extra funding for specific care needs. For some supplements, we automatically check eligibility for you. For others, you need to apply.

View the daily supplement rates in the Schedule of Subsidies and Supplements.

Reductions

Reductions apply if the resident gets a compensation payment or pays care fees.

How to claim

You must submit a claim form each month. The form must include the details of each resident you’re claiming a subsidy for in that month.

There are two ways to claim:

When a resident is on some types of temporary leave, you will still get the subsidy up to a certain number of days.

Subsidy payments

You will get advance payment in the first few days of each month. Services Australia estimates the payment amount based on past payments.

When they get a claim form, Services Australia checks the advance payment against the form. If needed, Services Australia will either:

  • make an extra payment in the following month
  • reduce the following month’s payment

Services Australia may deduct other amounts from the payment, such as:

  • amounts to repay capital grants
  • recovery of overpayments

Who decides the subsidy rates?

The Australian Government sets the subsidy and supplement rates. From 1 July 2023, annual funding increases in residential care will be informed by advice from the Independent Health and Aged Care Pricing Authority.

When can the subsidy vary?

Subsidy rate changes

The subsidy and care-related supplements are indexed once a year on 1 July.

Supplements that relate to accommodation are indexed twice a year, on 20 March and 20 September, in line with pension increases.

Temporary leave

If a person takes leave from residential care, their subsidy may decrease, depending on the type of leave they take and how long their leave is for.

Find out how leave affects subsidy payments.

Contact

Aged care subsidies and supplements contact

Email us if you have questions about aged care subsidies or supplements for approved providers.
Date last updated:

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