Aged Care Reform
StewartBrown pushes AN-ACC price to $310.91 as 62% of homes run at a loss
Aged Care Reform
StewartBrown pushes AN-ACC price to $310.91 as 62% of homes run at a loss
Aged Care ReformPricing & FundingRegulatory Bodies
Australian Ageing Agenda · 5 min read · 16 hours ago
Original source
Summarised by Stellar
Key points5 points
- StewartBrown recommends the AN-ACC base price rise to at least $310.91 per resident per day from 1 October, $15.21 above the current $295.64 and well above the government's announced $303.19.
- Direct care costs climbed 9.5% in the nine months to March 2026, outpacing the 2.55% indexation and leaving 62% of residential homes operating at a loss.
- The hotelling supplement should increase from $22.15 to at least $27.96 per day to help homes that do not charge higher everyday living fees recover everyday living costs.
- A regional loading or top-up on the hotelling supplement is proposed, with StewartBrown opposing means testing because it would disadvantage regional residents.
- IHACPA's reliance on FY24 cost data is criticised as failing to reflect the new Aged Care Act and strengthened Quality Standards operating environment.
Summary
StewartBrown is urging the AN-ACC price be raised to at least $310.91 per resident per day, arguing the government's planned 2.55% increase to $303.19 from 1 October amounts to an effective cut in operating margins. Its analysis shows direct care costs rose 9.5% in the nine months to March 2026, while 62% of homes already operate at a loss. The firm also seeks a hotelling supplement lift from $22.15 to at least $27.96 and a regional loading, saying IHACPA's FY24 data is outdated.