Minister for Aged Care Anika Wells has made her second surprise announcement in less than a week, revealing the Government will increase the Australian National Aged Care Classification (AN-ACC) price to $253.82 from 1 December 2023 – a 4.4% increase on the previous AN-ACC price of $243.10.

The move follows the Minister’s announcement on Wednesday that the Commonwealth Home Support Programme (CHSP) will not join the new Support at Home Program until mid-2027.

The new funding amounts to $2.194 billion in total and is designed to help residential aged care providers to fund the Fair Work Commission (FWC)’s annual wage review decision, which increased the award wage for aged care staff by 5.75% on 1 July this year.

According to the Minister’s statement, the increase accounts for providers’ back pay funding for the 1 July to 30 November period.

Next AN-ACC price will be announced in August

Aged care providers have previously expressed concern that the increase in AN-ACC funding – which rose to $243.10 on 1 July this year to cover the cost of the FWC’s 15% wage rise for direct care workers – would cover the 5.75% minimum wage increase.

An additional $21.5 million has also been committed for 24/7 RN supplement funding, also starting from 1 December 2023.

The statement also reveals that from 2024, the annual price for AN-ACC will be announced in August and come into effect on 1 October.

“This gives residential aged care providers greater certainty in the government funding they will receive each year,” it reads.

“Every aged care home will have the funding to make this wage increase a reality for a deserving care workforce – a workforce that has been undervalued for far too long,” said Minister Wells.