From 1 March 2025, the AN-ACC price increased to $282.44, up less than 1% from the previous AN-ACC price of $280.01.
The Australian Government is providing the additional funding to support aged care providers to deliver the Fair Work Commission (FWC)'s pay rise for 60,000 aged care nurses, which took effect on that date.
Details of the increase were published on the Department of Health and Aged Care (DOHAC)'s website on 28 February 2025, nearly 10 days after the Independent Health and Aged Care Pricing Authority (IHACPA) provided advice to the Minister for Health and Aged Care on the impact of the FWC nurse pay rise decision on the Residential Aged Care price - leaving aged care providers in the dark about their funding until the day before the changes took effect.
An IHACPA spokesperson told The SOURCE their advice was provided to the DOHAC on 19 February.
The average AN-ACC funding, which is based on resident need and geographic location, will increase from an estimated $303 per resident per day to an estimated $306 per resident per day, based on the new AN-ACC price.
Additional funding to support stages 2 and 3 of the FWC's aged care nurse wage rises will flow through AN-ACC from 1 October 2025 and 1 August 2026, when the FWC has determined the changes will take effect. From 1 March 2025, the 24/7 RN Supplement, which helps aged care providers meet 24/7 RN staffing requirements, will also increase, rising 2.8%.
Last September, Aged Care Minister Anika Wells announced a 13% increase in the AN-ACC price to fund Stage 3 of the FWC's Work Value Case for aged care workers two weeks prior to the increase taking effect, weeks later than the Government had promised.
Aged care providers have told The Weekly SOURCE the additional Government funding for aged care worker wage rises does not fully cover leave entitlement or increases in worker compensation insurance, leaving them hundreds of thousands of dollars out of pocket.
