Residential Aged Care Funding to Shift to Payments for Services Delivered
27 Aug 2026
Currently, residential aged care providers receive payments in advance at the beginning of each month. These payments are based on estimates of the services expected to be delivered.
From 1 July 2027, the Government will gradually reduce advance payments and increase payments based on services actually delivered.
The transition will continue until 30 June 2029, when all funding will be paid in arrears.
New approved residential aged care homes that begin operating from 1 July 2027 will receive payments based on services delivered from the start.
The Government says the change will:
- Simplify the payment process
- Reduce administration
- Make funding easier to manage
The change applies to providers funded through the Australian National Aged Care Classification (AN-ACC) and related residential subsidies and supplements.
Providers will not experience a change to the total amount of funding they receive.
The new payment arrangements will not apply to residential aged care services delivered by National Aboriginal and Torres Strait Islander Flexible Aged Care Program (NATSIFACP) or Multi-Purpose Service Program (MPSP) providers.
Residential Aged Care Funding to Shift to Payments for Services Delivered
Source: Australian Government-Department of Health, Disability and Ageing