From 1 October 2022, providers of residential aged care services must use a new tool to determine the level of funding available to them. This is known as the Australian National Aged Care Classification (AN-ACC) Funding Model, which replaces the Aged Care Funding Instrument (ACFI).

This article provides a brief overview of the new funding model and instrument along with some useful resources for providers during the transition period.

An Overview of the AN-ACC Funding Model

The funding arrangements under the AN-ACC are designed to provide more equitable funding to providers. The new model incorporates funding from several existing instruments under the one scheme. These include:

• ACFI basic subsidy
• homeless supplement
• viability supplement
• basic daily fee supplement
• additional funding for future obligations related to care minutes.

Funding under the AN-ACC model will be provided through three main components:

• A fixed component, known as a Base Care Tariff, which covers costs that do not depend on resident needs or occupancy levels. This also reflects the characteristics of the provider, such as location and any specialist services provided.
• A variable funding component based on AN-ACC classification, which reflects the individual care needs of residents.
• One-off entry adjustment payment for costs related to intake and initial planning for new permanent residents entering the service.

AN-ACC Transition Fund

The Government has also setup a transition fund to assist providers in adjusting to the new funding model. This means that if existing residents qualify for a lower level of funding than under ACFI, providers can use the fund to top up their funding to the previous level. The fund will operate for two years from the start of the new funding arrangements.

Additional Resources

For more information about the new model and details around the transition period for providers, click on the links below:

• Provider checklists for transitioning to AN-ACC
• AN-ACC Transition Support Plan
• AN-ACC Key Facts
• What is AN-ACC and how will it work?
• Transitioning from ACFI to AN-ACC FAQs
• AN-ACC Funding Guide
• Department of Health and Aged Care: The AN-ACC care funding model

The Department of Health and Aged Care has also created several video resources for providers:

• Care costs and care minutes reporting
• Allied health reporting
• Registered nurse care minutes reporting