On 2 September 2026 Minister Rae announced that from 1 October 2026 the Australian National Aged Care Classification (AN-ACC) price will increase to $303.19 per resident per day (prpd). This represents 2.55% increase or $7.55 on the current AN-ACC price of $295.64 prpd. The Minister stated that “Making sure older Australians and their families have a quality, affordable and safe aged care system that is properly funded is a priority of the Albanese Government.” It was also decided to hold the Hotelling supplement at its current level of $22.15 pbd while a review of the supplement is undertaken. 

StewartBrown is of the view that the level of increase in AN-ACC will not cover the true costs of care and that it will impact adversely on the financial sustainability of residential aged care homes at a time when investment in new beds is required. Similarly, StewartBrown believes that the methodology used to calculate the hotelling supplement adversely impacts both those charging HELF (impacting margins) and those not charging HELF (not meeting full costs of services). 

The discussion paper provides an evidence-based approach to analysis of the AN-ACC price increase and hotelling supplement calculation to foster further debate on the adequacy of funding for residential aged care operations.  

Click here to download a copy of the Discussion Paper