IHACPA has released the Pricing Framework for Australian Residential Aged Care Services 2025–26

28 May 2025

We received 46 submissions from stakeholders, including older Australians, carers and families, residential aged care providers, peak bodies, government departments and agencies, and researchers.

The pricing framework is accompanied by the Pricing Framework for Australian Residential Aged Care Services 202526 Consultation Report, which captures a summary of feedback received.

Key areas in the consultation 

 Key findings from the feedback include: 

  • support for updates to the aged care pricing principles to better reflect current aged care pricing methodologies
  • stakeholder concerns that cost differences between Australian National Aged Care Classification (AN-ACC) classes 2 and 3 (independent mobility classes) may be related to residents experiencing cognitive impairment, mental health conditions, challenging behaviours and complex care requirements
  • support for ongoing cost collections to evaluate the costs associated with residential respite care and ensure pricing advice reflects the costs to deliver services
  • stakeholder concerns with the current approach to pricing and costing of allied health care, which accounts for the level of care currently provided, not the level of allied health care clinically assessed for residents
  • the need to understand the costs to deliver culturally appropriate residential aged care to Aboriginal and Torres Strait Islander peoples, including workforce support
  • stakeholder requests to ensure people from culturally and linguistically diverse backgrounds and marginalised groups within the homeless population receive culturally appropriate care, through investment in specialised staff training and other resources.

About the pricing framework

The pricing framework outlines the principles, scope and methodology used by IHACPA to develop the residential aged care pricing and costing advice for the government.

It considers stakeholder submissions to the consultation paper. This supports transparency and accountability by making publicly available the approach used to inform our pricing advice. 

More information

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