A Department of Health and Aged Care Fact Sheet has revealed that non-specialist aged care providers in metropolitan areas have just six months until their data on care minute targets will be used by the Government to determine their care funding from April 2026.
As we reported in December 2024, the Government announced it would link care minute funding to the delivery of care minutes from 1 October 2025 for residential aged care providers in metropolitan areas in the Mid-Year Economic Fiscal Outlook (MYEFO).
"To make sure providers are meeting care minute targets and to ensure funding is used for its intended purpose, impacted services not meeting their targets will see their care funding reduce from April 2026," the Fact Sheet states.
"The amount will depend on the services’ care minutes performance from the October – December quarter of 2025 onwards."
With only six months until the start of the December quarter and only 55% of residential aged care homes in metropolitan areas meeting their care minute targets, according to December 2024 data, many providers will be under pressure to recruit more staff including agency staff.
According to the Fact Sheet:
"Care funding will be linked to the delivery of care minutes through a new care minutes supplement.
"Under this funding change, the amount of Base Care Tariff (BCT) funding for MM1 non specialised services will be reduced by 0.113 of the National Weighted Activity Unit (NWAU) from 1 April 2026.
"This amounts to $31.92 per bed day based on the current AN-ACC price of $282.44.
"The equivalent of this BCT funding will be redirected into a new care minutes supplement.
"You will receive some or all of the care minutes supplement depending on your care minutes performance.
"From 1 April 2026, the maximum amount of supplement payable will be equivalent to the reduction in the BCT funding (0.113 NWAU)."
