AN-ACC residential care funding model
The AN-ACC funding model is an efficient, transparent and sustainable funding model for residential aged care.
It provides more equitable funding to residential aged care providers that better matches residents’ needs and the costs of delivering care, particularly in:
- rural and remote locations
- Indigenous and homeless specialist services.
AN-ACC key elements
There are 3 main elements under the AN-ACC funding model:
- resident assessments will be completed by an independent AN-ACC assessor instead of residential aged care workers
- the AN-ACC subsidy paid to providers has 3 components – fixed, variable, and a one-off entry payment. The characteristics of a residential aged care home, such as location or specialisation, determines a fixed amount of funding, and the variable funding component is determined by an independent assessment of a resident’s care needs
- annual pricing and model review, informed by independent analysis from the Independent Health and Aged Care Pricing Authority (IHACPA) based on costing studies and other available aged care sector data.
Learn more about the AN-ACC funding model.
AN-ACC background
Under the Aged Care Funding Instrument (ACFI), funding levels for residential aged care services:
- did not adequately differentiate between residents about the costs of delivering care
- resulted in volatile revenue streams for providers and costs to the government
- required clinical workers in residential aged care to assess residents for funding, reducing their availability to deliver care.
Reflecting on these issues, the Royal Commission into Aged Care Quality and Safety recommended introducing a case-mix funding model for residential aged care, such as AN-ACC.
The Australian Health Services Research Institute developed the AN-ACC for the government between 2017 and 2019. The model was independently researched, trialled and tested.
The AN-ACC timeframes outline the key milestones for the implementation of the AN-ACC funding model.
AN-ACC timeframes
| Stages | Date |
|---|---|
| Alternative Aged Care Assessment, Classification System and Funding Models Report (University of Wollongong) | February 2017 |
| Review of the Aged Care Funding Instrument Report (Applied Aged Care Solutions Pty Ltd) | June 2017 |
| Resource Utilisation and Classification Study Reports (University of Wollongong) | February 2019 |
| Trial of the AN-ACC assessment model announced | 10 February 2019 |
| Report on the trial of the AN-ACC | August 2020 |
| Aged Care Royal Commission Report | 26 February 2021 |
| Reform package for aged care to improve residential aged care services announced at the 2021-22 Budget | May 2021 |
| AN-ACC - Shadow Assessment Period | April 2021 – Sept 2022 |
| Basic Daily Fee supplement commenced | 1 July 2021 |
| AN-ACC pricing for 2022-23 financial year released | 30 March 2022 |
| AN-ACC Transition Support Plan published | 8 April 2022 |
| Shadow Assessment data released | 8 April 2022 |
| New quarterly financial reporting requirements commenced – the first quarterly report was due on 4 November 2022 for the September quarter | 1 July 2022 |
| Palliative care entry arrangements commence | 23 July 2022 |
| Australian Government passed the Aged Care and Other Legislation Amendment (Royal Commission Response) Bill 2022 | August 2022 |
| New Services Australia payment system went live | August 2022 |
| AN-ACC Transition Fund applications opened | 10 August 2022 |
| Care minutes targets available in My Aged Care Service and Support Portal | August 2022 |
| Publication of guide to the AN-ACC funding model | September 2022 |
| AN-ACC commenced (replaced ACFI) | 1 October 2022 |
| Funding for care minutes (200 minutes, including 40 minutes registered nurse time) commenced | 1 October 2022 |
| AN-ACC Transition Fund commenced | 1 October 2022 |
| New residential respite funding model commenced | 1 October 2022 |
| Publication of Star Ratings to help senior Australia, their carers and families to compare services and choose one that is right for them | December 2022 |
| AN-ACC pricing for 2023–24 commenced, as recommended by the Independent Hospital and Aged Care Pricing Authority | 1 July 2023 |
| Mandatory requirement for a registered nurse onsite and on duty 24 hours a day commenced | 1 July 2023 |
| Mandatory care minutes standards (200 minutes, including 40 minutes registered nurse time) commenced | 1 October 2023 |
| Mandatory care minutes standards increases to 215 minutes, including 44 minutes registered nurse time | 1 October 2024 |
Learn more
The Australian National Aged Care Classification (AN-ACC) funding guide
This guide provides information for approved residential care providers on the AN-ACC funding model. It sets out how to receive AN-ACC subsidies, including relevant compliance requirements that may apply.
Date last updated: