How aged care funding works
The Australian Government pays aged care service providers to deliver aged care through:
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subsidies and supplements
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capital grants for aged care services
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program funding.
People who receive government-subsidised aged care also help with the cost, if they can afford to. They do this by paying aged care fees and charges.
Subsidies and supplements
The Australian Government pays subsidies to approved providers on behalf of each person receiving government-subsidised:
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flexible care – transition care and short-term restorative care (STRC).
Supplements help with the cost of meeting specific care needs for eligible care recipients. We include supplement amounts in subsidy payments and some program funding grants.
Find out more about subsidies and supplements.
Allocated places
For some programs, you need an allocation of government-subsidised aged care places before you can get subsidies. You can apply for:
- residential aged care places for providers that are in a position to provide care
- flexible aged care places for Multi-Purpose Services (MPS) through MPS Allocation Rounds.
Capital grants
Organisations can apply for capital grants through the Aged Care Capital Assistance Program (ACCAP). You can use these grants to:
- build new services
- upgrade and improve the quality of your services
- build accommodation to support aged care workers.
Program funding
You can also apply for funding grants through the following aged care programs: