Forthcoming updates to residential aged care funding

Forthcoming updates to residential aged care funding

12 Sep 2025

Learn about the upcoming changes to residential aged care funding, such as the Australian National Aged Care Classification (AN-ACC) and the hotelling supplement.

The Australian Government has announced a series of changes to residential aged care funding to help providers cover the costs of delivering care and everyday living services.

From 20 September 2025, the hotelling supplement will rise from $15.60 to $22.15 per resident per day. This funding supports services such as catering, cleaning and laundry.

From 1 October 2025, further changes will take effect, including:

  • An increase in the AN-ACC price to $295.64, which includes funding to cover Fair Work Commission award wage increases.

  • Adjustments to AN-ACC fixed and variable funding categories so they better reflect the cost of care.

  • Updated care minute requirements for each AN-ACC class in line with variable funding.

  • Changes to the 24/7 registered nurse supplement to reflect cost adjustments.

  • An extension of the AN-ACC Transition Fund for another 12 months to support providers in smaller or remote markets.

These changes to the AN-ACC and hotelling supplement follow recommendations from the Independent Health and Aged Care Pricing Authority.

Source: Australian Government, Department of Health and Aged Care