Think residential aged care is not properly funded?
- Consultation open: Feedback sought on 2027–28 pricing framework
- Seven issues: Costs collections administration dementia and supplements
- Funding advice: Framework informs AN-ACC pricing recommendations
- Provider input: Submissions help shape future aged care funding
Residential aged care operators now have an opportunity to help shape the future of the sector.
The Independent Health and Aged Care Pricing Authority (IHACPA) is seeking feedback from providers on the framework it will use to assess the costs of residential aged care.
The consultation will inform the Pricing Framework for Australian Residential Aged Care Services 2027-28, the framework IHACPA will use to develop its Residential Aged Care Pricing Advice 2027-28 to the Government, which in turn feeds into the Government’s AN-ACC price decision for 2027-28.
“We encourage everyone with an interest in aged care to share their experiences and views on residential aged care,” said IHACPA Chair, David Tune AO PSM.
“This is an important step in ensuring our pricing and costing advice remains transparent, evidence-based and responsive to the needs of older Australians and the aged care sector.”
The framework is revised annually, informed through consultations.
Consultations often receive feedback outside the scope of IHACPA, on topics such as the AN-ACC branching structure and care minute targets, which are the responsibility of the Department of Health, Disability, and Ageing.
This year, the consultation addresses seven key issues within its scope:
- The differences in administration and care management costs for respite residents compared to permanent residents
- How to reduce provider burden during cost collections
- Allocating administrative costs in residential aged care pricing
- How care costs are allocated between individual and shared components
- What new costs are associated with implementing the new Aged Care Act
- Factors to consider in assessing the costs of the Specialist Dementia Care Program
- Factors to consider in assessing the costs of the oxygen and enteral feeding supplements
Given the pressure on margins in residential aged care, and widespread concerns about the issues identified above, operators are encouraged to share their feedback with IHACPA.
The 36-page Consultation Paper on the Pricing Framework for Australian Residential Aged Care Services 2027-28 is available here.
You can make a submission here. Submissions close 5pm AEST on Friday 21 August 2026.
