Residential Care Service
and Sustainability Reforms
and Beyond


Residential Care Service and Sustainability Reforms

Summary of Residential Care Service Reforms

Currently around 204,000 senior Australians reside in residential aged care. The Commonwealth Government will invest $3.9 billion over the next 4 years to increase front line care.

From 1 July 2021, a new government basic daily fee supplement of $10 per resident per day will give immediate support with provider reports on record daily services, such as food, nutrition, linen and cleaning.

A new funding model for residential aged care will enable transparency, and independent assessors will resolve fairer aged care support for all residents. The Australian National Aged Care Classification (AN-ACC) model will distribute funds based on the needs of the resident and the costs of providing that care. Respite care funding will also align to the AN-ACC model.

Additional funding will support face-to-face care for each resident. Providers will be monitored and will be required to produce regular reporting to:

  • inform star rating for comparison between care facilities
  • give a monthly care statement on resident’s care, changes or events
  • monitor mandatory care time and staffing minutes to increase clinical care

A competitive market will assist service choice, the Government will invest $102.1 million to:

  • allocate residential care packages to consumers
  • create new financial and prudential monitoring, compliance and interventions
  • support providers to improve their operations
  • support eligible providers to receive free, independent and confidential business advice

The Government will also invest $49.1 million to install an independent process to gain advice on aged care pricing issues.

Residential Care Service and Sustainability Reforms Timetable

  • Supplement of $10 per resident per day
  • Continuation of the increases to the homeless and viability supplements
  • New prudential monitoring, compliance and intervention to help providers build financial sustainability, capability and resilience
  • Independent Hospital and Aged Care Pricing Authority established, extending role of existing hospitals pricing authority to include aged care advisory function

  • New funding model to improve quality of care for 240,000 people using residential care and 67,000 people using residential respite care each year
  • Average care minutes for each resident increased to 200 minutes per day, including 40 minutes of registered nurse time
  • Registered Nurse on site for a minimum of 16 hours per day
  • Structured Adjustment Program delivers increased provider viability and a strengthened aged care market
  • Single assessment workforce introduced to improve the experience of Senior Australians in residential care
  • Better reporting through "star ratings" to help Senior Australians make easier comparisons and improve choice of care

  • Minimum care time becomes mandatory
  • Annual funding increases and price setting take into account advice from the new Independent Hospital and Aged Care Pricing Authority

  • Increased choice for senior Australians receiving residential care with care packages assigned to consumers, not providers
  • New residential aged care accommodation framework gives Senior Australians more choice and improve accessibility and dementia-friendly accommodation
  • Aged Care Approvals Round discontinued

  • Improved service suitability that ensures the care needs and preferences of senior Australians in residential aged care are met

Urgent Aged Care Placement

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Aged Care Star Rating System

Where can I find the Star Ratings?

From , the Government has started to use the STAR RATING system for registered aged care homes (new homes will be allocated a Star Rating after 12 months of operation).

Star Ratings are displayed on the Aged Care Provider Search within the My Aged Care website.

The Star Rating is based upon 5 levels with the middle rating denoting only a minimum baseline of ‘Acceptable’ care quality and services.

Continuous Improvement

The Star Rating System has revealed that 41 % of aged care homes are performing at a 5-star (excellent) or 4-star (good) level.

Star Ratings also reveal that astonishingly 5 % are performing below the minimum standards set, receiving a dismal and disturbing (Improvement Needed) or (Significant Improvement Needed) Star Rating.

Star Rating Support

We support full public disclosure of those aged care homes that are making the effort to exceed the regulated standards and community expectations.

We also support the naming of aged care homes that do not currently provide quality levels of aged care services to the frail elderly and vulnerable members of our community.

The Star Rating system is a key component of the aim for continuous improvement to our aged care system.

Total Homes in each Star Rating level

54 homes
2.16 %

964 homes
38.56 %

1357 homes
54.28 %

Improvement Needed
119 homes
4.76 %

Major Improvement
6 homes
0.24 %



Royal Commission into Aged Care Quality and Safety

Summary of Recommendations and Download the Complete Report