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Aged Care Accommodation Pricing Review announced

2 min read

At the Ageing Australia conference on Tuesday, Aged Care and Seniors Minister Sam Rae said policy expert Nigel Ray PSM and academic Associate Professor Nicole Sutton will lead the Aged Care Accommodation Pricing Review, a recommendation of the Aged Care Taskforce.

Ageing Australia in March called on the Albanese government to review the Accommodation Supplement as soon as possible and Emma Maiden, Uniting NSW.ACT Director Advocacy & External Relations, in July told The Weekly SOURCE the government had to bring forward its planned review of aged care accommodation funding.

Nigel Ray PSM

Nigel Ray PSM was Deputy Chair of the Aged Care Taskforce and formerly Deputy Secretary at Department of Treasury. He has more than 35 years’ experience in public policy and economic analysis and was awarded a Public Service Medal (PSM) in 2013 for his contributions to economic policy, including the response to the Global Financial Crisis. 

Associate Professor Nicole Sutton is co-founder of the University of Technology Sydney’s Ageing Research Collaborative. She is an expert in accounting, finance and organisational behaviour, and has conducted extensive research into aged care policy and practice.

Assoc Professor Nicole Sutton

The Aged Care Accommodation Pricing Review will look into:

  • the accommodation supplement,
  • incentives for providers to accept low-means residents, 
  • incentives for providers to maintain and provide high quality accommodation, and
  • pricing arrangements for residents to pay their accommodation costs.

"We know that getting the accommodation supplement and pricing right are essential to a sector that affords all older Australians world-class care, no matter their background and resources," the Minister said.

"I have heard from many of you how important this review is to shaping a fair and sustainable aged care system, which is a priority for the government too."

A separate review will look at the use of Refundable Accommodation Deposits, also a recommendation of the Aged Care Taskforce.

 

StewartBrown's analysis of the recent AN-ACC funding decision noted the funding gap between supported and non-supported residents is widening, contributing to the system being inequitable for low-means participants, and making the sector less investable.   

Read the Accommodation Pricing Review Consultation Paper. Submissions close on 31 October 2025. A final report will be tabled in parliament by 1 July 2026.


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