Residential Care Service and Sustainability Reforms

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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.

Royal Commission Aged Care Final Report

Download RCAC Final Report:

1:   Recommendations (4.20 Mb)
2:   Current System (1.83 Mb)
3a: New System (2.65 Mb)
3b: New System (3.53 Mb)
4a: Hearings (6.56 Mb)
4b: Hearings (9.14 Mb)
4c: Hearings (8.82 Mb)
5:   Appendices (5.98 Mb)

Aged Care Reform Now

Aged Care Connect is a member of Aged Care Reform Now

Aged Care Reform Now

Aged Care Reform Now (ACRN):

  • is an online community of people with the shared vision of a high quality Australian Aged Care sector.
  • is rapidly growing in membership numbers.
  • consists of current care recipients, family members, friends, aged care workers, aged care advocates and others who are passionate about social justice.
  • members come together to contribute to, and lobby government for, meaningful Aged Care Reform.

ACRN aim is to develop sustainable solutions, not amplify problems. ACRN believe it is only by working together – with care recipients, families, staff, aged care providers, peak bodies, health related unions, academics, Health Department bureaucrats, and politicians – that frail older Australians will receive the appropriate care and support they need.

ACRN membership is FREE and has as an active Facebook group. You can join ACRN at:
ACRN Facebook Page.

If you’re not on Facebook, you can still access ACRN at:

Individualised Placement Plan

An individual placement plan is developed for each of our family clients.

The placement plan contains detailed client requirements and family preferences, shortlist of suitable facilities and a timetable of work completed and planned to achieve the successful placement outcome.

care plan

Our family clients can request the current status of the tasks on the plan. This formal approach helps with communication between all interested parties, including social workers in the hospital.

We also request feedback from families of our services and where we can continually improve and revise our service for future family clients.

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Residential Aged Care



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Royal Commission into Aged Care Quality and Safety

Summary of Recommendations and Download the Complete Report

Seek independent and experienced assistance.

Seek Independent Advice

Covid-19 and the findings of the Royal Commission into Aged Care have increased awareness regarding quality services in aged care homes.

This has reinforced the benefit to seek independent and experienced assistance when placing your loved one into any aged care home.