The government is now operating in accordance with the Guidance on Caretaker Conventions, pending the outcome of the 2025 federal election.

Hotelling supplement for residential aged care

Approved providers of residential aged care receive the hotelling supplement to help meet the cost of providing everyday living services. This includes services such as catering, cleaning and laundry.

Hotelling supplement rate

The hotelling supplement rate is paid per resident per day (PRPD).

The hotelling supplement is indexed on 20 March and 20 September each year.

See the Schedule of Subsidies and Supplements for the current rate.

Additional supplement increases

From 20 March 2025 the hotelling supplement rate will be $13.46 PRPD. This includes $0.86 PRPD to meet the Fair Work Commission's decision on higher award wages for indirect care workers, and $0.05 PRPD for standard indexation.

The hotelling supplement increases to $15.60 PRPD from 1 July 2025. This increase will include $0.25 PRPD to fund the remainder of the Fair Work Commission’s Stage 3 decision, and $1.89 PRPD to fund the higher costs of providing everyday living services, as identified by the Independent Health and Aged Care Pricing Authority (IHACPA). This will ensure providers are fully funded to deliver everyday living services.

Eligibility

All residential aged care services excluding those in the Multi-Purpose Services Program receive the hotelling supplement.

How to apply

Providers do not need to apply for the hotelling supplement.

Services Australia will automatically pay the supplement to eligible services.

The hotelling supplement is paid monthly in line with other residential aged care subsidies and supplements.

Contact

Email subsidiesandsupplements@health.gov.au if you have questions about aged care subsidies or supplements for approved providers.

Date last updated:

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