Overview
IHACPA was established as an independent government agency under the National Health Reform Act 2011 (NHR Act) to promote improved efficiency in, and access to, public hospital services through the annual determination of the national efficient price.
In 2022, in response to the recommendations of the Royal Commission into Aged Care Quality and Safety, IHACPA’s role was expanded to include the provision of annual independent aged care pricing and costing advice to the Minister for Health and Ageing. We also commenced assessing applications from registered providers to charge higher accommodation payment amounts as a refundable accommodation deposit.
In line with recommendations of the Aged Care Taskforce, we seek to promote a sustainable Australian aged care system that is accessible, resilient and delivers quality care outcomes for everyone through our program of work.
We use evidence to make fair and equitable recommendations that drive efficiency and promote better value, and higher quality care services, contributing to the government’s broader aged care reforms to improve the quality and safety of aged care in Australia.
Our work is guided by the minister’s Expectations Setting Paper as well as our Statement of Intent and Exchange of Letters (Exchange of Letters between IHACPA and the Department of Health and Aged Care and Exchange of Letters between IHACPA and the Aged Care Quality and Safety Commission) which outline the scope and responsibilities of our aged care functions.
Residential aged care
Our residential aged care work includes providing annual pricing and costing advice on the Australian National Aged Care Classification (AN-ACC) funding model for residential aged care and residential respite care.
Our advice informs government decisions on the AN-ACC price and price weights for each AN-ACC class and base care tariff category.
Read more about residential aged care.
Support at Home
We provide pricing and costing advice on services on the Support at Home service list. The Minister for Health and Ageing then sets the price caps for Support at Home aged care services.
Read more about Support at Home aged care.
Refundable accommodation deposits
We assess applications from registered providers to charge higher maximum accommodation payment amounts as a refundable accommodation deposit or equivalent daily accommodation payment.
Read more about refundable accommodation deposits
Aged Care Act
One of the key recommendations of the Royal Commission into Aged Care Quality and Safety was the development of a new Aged Care Act to strengthen Australia’s aged care system.
On 1 November 2025, the new Aged Care Act 2024 (the Aged Care Act) commenced, replacing the Aged Care Act 1997, Aged Care (Transitional Provisions) Act 1997 and Aged Care Quality and Safety Commission Act 2018.
The Aged Care Act provides a new regulatory model for government funded aged care services, including programs such as the National Aboriginal and Torres Strait Islander Flexible Aged Care Program and the Multi-Purpose Service Program.
It also supports government reforms to in-home care through the transitioning of current in-home aged care programs to a single Support at Home program, helping older people to stay at home for longer.
The Aged Care Act includes a Statement of Rights within strengthened Aged Care Quality Standards. The Statement of Rights outline what rights older people have when accessing aged care services funded by government.