The Australian National Aged Care Classification, commonly known as AN-ACC, is the funding model that determines how much government funding each residential aged care facility receives for each resident. It replaced the previous Aged Care Funding Instrument (ACFI) in October 2022, bringing a fundamentally different approach to how care is funded.
For facility managers, clinical leads, and workforce planners, understanding AN-ACC is essential. It directly affects your revenue, your staffing obligations, and your ability to deliver quality care. Here is a plain-English guide to how it works and what has changed recently.
How AN-ACC Funding Works
Under AN-ACC, each resident is assessed and classified into one of 13 AN-ACC classes based on their care needs. Funding for each resident is made up of three components:
- A base care tariff — a fixed daily amount paid to every facility for each resident, regardless of their classification. This covers the base cost of providing residential care.
- AN-ACC class funding — a variable daily amount that depends on the resident's assessed care needs. Higher-needs residents attract higher funding.
- Supplements — additional payments for specific circumstances, such as respite care, oxygen, or enteral feeding.
From October 2025, the national weighted activity unit (NWAU) is priced at $295.64. This pricing feeds into the calculation of each AN-ACC class rate and is updated annually by the Department of Health and Aged Care.
The key shift from ACFI to AN-ACC is that funding is now based on an independent assessment of resident needs rather than provider-completed claims. This was designed to reduce gaming and ensure funding better reflects actual care requirements.
Care Minutes and Staffing Requirements
AN-ACC is closely linked to the government's mandated care minutes targets. Facilities are required to deliver a minimum number of care minutes per resident per day, with a specific proportion delivered by registered nurses.
The current target is 215 care minutes per resident per day, of which 44 minutes must be delivered by a registered nurse. These targets are expected to increase over time as the sector transitions to higher staffing standards.
From April 2026, care minute funding will be more directly linked to actual care minute delivery. Facilities that consistently fail to meet their care minute targets may face funding adjustments. This creates a direct financial incentive to maintain adequate staffing levels — and a direct financial risk for facilities that are understaffed.
The Role of Clinical Documentation
Under AN-ACC, the classification of each resident is determined by an independent assessment team from the Department's assessment workforce. However, these assessors rely heavily on clinical documentation held by the facility to inform their assessment.
If your clinical documentation does not accurately reflect a resident's care needs, there is a risk that the resident will be classified lower than their actual needs warrant — resulting in lower funding. Good clinical documentation is not just a compliance requirement; it is a revenue protection strategy.
Ensure that your nursing staff are documenting:
- Changes in condition promptly and accurately
- Behavioural and psychological symptoms of dementia
- Pain assessments and management interventions
- Mobility and falls risk assessments
- Nutrition and hydration needs
- All clinical interventions and their outcomes
AN-ACC Reappraisals
If a resident's condition changes significantly, the facility can request an AN-ACC reappraisal. This is important because a resident who has deteriorated since their last assessment may be classified too low, meaning the facility is underfunded for the care they require.
Common triggers for a reappraisal include a significant decline in mobility, a new diagnosis of dementia or cognitive impairment, increased behavioural symptoms, or a transition to palliative care. Facilities should have a process in place to identify residents who may benefit from a reappraisal and to request one promptly.
Workforce Planning Implications
The combination of AN-ACC funding and mandated care minutes creates a clear imperative for robust workforce planning. Facilities need enough qualified staff to meet care minute targets, and they need the right mix of registered nurses, enrolled nurses, and personal care workers.
This is where agency partnerships become critical. Even well-staffed facilities experience gaps due to sick leave, parental leave, resignations, and seasonal fluctuations. An agency partner that understands your AN-ACC profile and care minute obligations can provide staff who are not just filling a shift, but actively contributing to your compliance targets.
Staying Current
AN-ACC pricing, care minute targets, and associated rules are updated regularly. Facilities should:
- Monitor announcements from the Department of Health and Aged Care
- Conduct regular pricing risk assessments to ensure funding covers costs
- Review eligibility for the transition fund, which provides temporary support to facilities adjusting to the new model
- Engage with peak bodies such as the Aged & Community Care Providers Association (ACCPA) for sector updates and advocacy
AN-ACC is not a set-and-forget system. It requires ongoing attention to ensure your facility is funded appropriately for the care it provides.
Barton Care works with aged care facilities to provide staffing solutions that align with AN-ACC requirements and care minute targets. Contact us to discuss how we can support your workforce planning.
