AN-ACC explained: how residential aged care funding works

AN-ACC — the Australian National Aged Care Classification — is how the Australian Government funds care in residential aged care homes. This guide explains, in plain English, how assessment, classifications and funding fit together, and what it means day to day for providers.

What is AN-ACC?

AN-ACC is the model the Australian Government uses to fund care in residential aged care. It replaced the Aged Care Funding Instrument (ACFI) on 1 October 2022, following the Royal Commission into Aged Care Quality and Safety. Where ACFI relied on providers appraising residents themselves, AN-ACC uses independent assessment to determine funding — the aim being a fairer, more consistent link between a resident's care needs and the funding a home receives.

How AN-ACC assessment works

Funding under AN-ACC is driven by an assessment of each resident carried out by an external assessor who is independent of the provider. The assessor considers factors such as the resident's mobility, function and cognition, and assigns them to an AN-ACC class. New residents are assessed after they enter care, and a resident can be reassessed if their needs change materially. Because assessment is independent, providers don't set their own funding classifications — a key difference from the ACFI era.

The AN-ACC classes

AN-ACC sorts residents into one of 13 classes. The classes reflect assessed needs — for example mobility, and whether a resident has complex physical or cognitive needs — with one class specifically for people admitted for palliative care. Each class carries a different funding weight, so a home's funding reflects the actual mix of residents it cares for, rather than a flat rate.

How AN-ACC funding is calculated

A home's AN-ACC care funding has a few parts:

• Base care tariff — a fixed amount per available bed, per day, that every home receives to cover the fixed costs of running care. It can vary with factors such as location (for example regional or remote homes) and specialised roles.
• A variable, per-resident amount — set by each resident's AN-ACC class and paid per day.
• One-off adjustments — such as an amount on a resident's first entry to help with the costs of settling them in.

The exact dollar figures are set and indexed by the Government and change over time, so we've deliberately kept specific amounts out of this guide — the current rates are published by the Department of Health and Aged Care.

Care minutes and AN-ACC

Sitting alongside AN-ACC funding is a separate obligation: mandatory care minutes. From 1 October 2023, residential aged care homes must deliver a minimum average amount of care time per resident, per day — including a registered nurse component. Targets are set for each home based on its resident mix (which AN-ACC assessment feeds into), they're averaged across the home, and they step up over time. Homes report their care minutes, and shortfalls can carry funding and compliance consequences. Because the target figures increase in phases, confirm the current targets with the Department before relying on any specific number.

What AN-ACC means for providers day to day

• Records and evidence. Because funding follows independent assessment, accurate, up-to-date resident records matter — both to spot reassessment triggers and to evidence the care you deliver.
• Tracking care minutes against targets. You need a current view of care minutes delivered versus target, ideally linked to rostering so gaps are visible before they become reportable shortfalls.
• Connecting funding to operations. AN-ACC class mix, care minutes, rostering and clinical care are all connected — managing them across disconnected spreadsheets is where errors and blind spots creep in.

How software helps

This is exactly the kind of connected, moving-target problem a configurable platform suits. In Ontvine's AN-ACC & care minutes software you can model AN-ACC classifications and your resident mix, track care minutes against the current targets, and link them to rostering and care delivery — so funding, workforce and care sit on one connected model instead of separate systems. Because it's configurable, the model can be adjusted as funding rules and care-minute targets change, rather than waiting on a vendor release.

Frequently asked questions