Australian aged care sees $951m govt investment surge

The federal government has pledged nearly a billion dollars to the continued improvement of Australian aged care in recent days, with funding increases aimed at delivering world-class services, ensuring quality support, and modernising facilities for older Australians across the nation.

From 1 October 2025, the Australian National Aged Care Classification (AN-ACC) price is set to rise to $295.64 per resident, per day. Additionally, from 20 September 2025, the hotelling supplement will see a 42 per cent increase, moving from $15.60 to $22.15 per resident, per day.

This financial injection, which includes a significant 42 per cent increase in the hotelling supplement, is designed to directly empower providers to enhance daily essentials like food, cleaning, and laundry services, ensuring residents receive safe, high-quality care.

The government’s updates to AN-ACC fixed and variable funding categories will align financial support with the costs of meeting residents’ care needs, which is based on independent advice from the Independent Health and Aged Care Pricing Authority. Care minutes for each AN-ACC class will also be adjusted from 1 October to correspond with these funding changes.

The AN-ACC Transition Fund will also be extended for another 12 months to support smaller and regional providers. This extension aims to ensure older Australians can access care regardless of their geographical location, with eligible providers soon to be invited to apply for grants.

Labor has also responded to growing pressure from the WA government by committing $30 million towards a new 80-bed residential aged care home in East Perth.

The partnership with St Bartholomew’s House Inc (St Bart’s) will support the building of the $46 million facility, which will have 80 single ensuite rooms across seven levels, with dedicated floors to cater for both male and female residents, on-site access to clinical and allied health professionals, and culturally inclusive spaces, including a yarning circle, and outdoor areas

Funded through the Aged Care Capital Assistance Program (ACCAP), the St Bart’s project marks the ninth specialist aged care project for older people who are homeless or at risk of homelessness to be funded nationally.

Federal member for Perth Patrick Gorman said the federal funds will bring welcome reprieve for WA hospitals.

“The people of Perth want every Western Australian to be looked after in their old age,” Mr Gorman said.

“Our most vulnerable community members are no exception.

“This investment in St Bart’s will enable our city to keep older people from sleeping rough, and will also ease pressure on our local hospitals like Royal Perth Hospital.”

Also within the latest round of ACCAP funding, a further $300 million has been announced for regional, rural, and remote communities. Building on the $651m already invested through ACCAP since 2022, bringing the total investment to $951m.

Round 3 of ACCAP will fund 66 infrastructure projects, designed to upgrade or construct new aged care homes and provide staff accommodation in these areas. The projects are set to deliver 315 new or reopened aged care beds.

A portion of this funding ($87m) will be allocated across 12 projects to support older Aboriginal and Torres Strait Islander people, in a bid to provide access to services that respect culture, connection to Country, and community.

This round also includes the largest grant awarded to date under ACCAP; a $51m investment to build a new 94-bed residential care home in Broken Hill, designed to address viability challenges in the region and support older people in their community.

Expressions of interest will open in October to identify a provider for a new 120-bed residential care home in Darwin, fulfilling Labor's $60m election promise to expand aged care access in the Northern Territory.

Minister for Aged Care and Seniors Sam Rae said these recent funding announcements will help to deliver even more aged care beds, helping older Australians to access the care they need “in the places they love.”

“Labor’s $300 million funding boost is the largest single aged care infrastructure investment by any Federal Government,” Minister Rae said.

“ACCAP has now provided almost a billion dollars to help rebuild our aged care system after a decade of neglect under the Liberals.”