The Government’s review of the Modified Monash Model (MMM) – used to allocate rural, regional and remote aged care funding – has found the tool is “useful but limited” and, in its current form, “not fit for purpose” for aged care.
Three clear themes emerged in the 55-page report. First, MMM’s simplicity makes it easy to apply, but too blunt to target support where it’s most needed. Second, local context matters – and the model can flatten important differences between communities. Third, aged care funding decisions require more information than MMM alone provides.
Stakeholders argued MMM assumes areas with the same rating share the same needs, leading to misclassification. In Kalgoorlie and Broken Hill, for example, providers said the MMM3 label understates their remoteness and workforce challenges.
As one respondent put it: “Population size does not necessarily mean there are better resources available, especially for remote communities near state borders or those where mining has driven population growth but infrastructure has not followed.”
Disadvantage exists in metro areas too
Others warned that tying need too closely to remoteness overlooks disadvantage in some metropolitan settings.
“Aboriginal and Torres Strait Islander communities in MM1 or MM2 areas like Toowoomba still face systemic racism and barriers to aged care but receive less support because they are not considered rural or remote,” one submission said.
Participants also noted MMM doesn’t recognise similarities across bands. Many MM4 communities, they said, face MM5-like issues – chronic workforce shortages, high demand, limited services – while the model focuses on population and distance and misses factors such as service catchments, hospital overflow and the role of providers as regional hubs.
Consultations took place in Kalgoorlie (WA) and Broken Hill (NSW) in late 2024, and in 2025 in St Helens (TAS), Port Augusta and Whyalla (SA), Bowen (QLD), Mildura (VIC) and Katherine (NT). Feedback came via online surveys and submissions, site visits, and discussions with peaks, NGOs and Government agencies.
Draft recommendations will now be drawn from the consultation, with a final report due by year’s end. The consultation summary is available to read here.
