About the cost collection
Residential aged care cost collections provide an important evidence base for the Australian National Aged Care Classification (AN-ACC) funding model, enabling more transparent and activity-based pricing.
The cost collection involved almost 200 residential aged care homes from July 2024 to September 2025. This represents the most comprehensive dataset to date on the costs and time involved in delivering residential aged care in Australia.
The data collection combined real-time measurement of direct care time using Bluetooth-enabled devices with additional workforce, resident and activity data.
Financial data from the Quarterly Financial Report, Aged Care Financial Report and residential aged care homes was also used to support adjustments and detailed analysis.
Key cost findings
- Average daily costs increased with care complexity and were mostly consistent with direct care time patterns
- The average daily cost for permanent residents was $430
- The average daily cost for respite residents ranged from $381 to $498
Recommendations
The final report of the Residential Aged Care Cost Collection 2024–25 includes recommendations across 10 key areas:
- expanding participation and representativeness
- strengthening care-time measurement and analysis
- reviewing and refining AN-ACC classes and weights
- strengthening data alignment and integration
- establishing a rolling costing roadmap and strengthening sector capability
- refining measurement of indirect care
- improving visibility and measurement of allied health services
- enhancing representation and costing of respite care
- optimising overhead allocation methods
- maintaining transparency and continuous improvement.
IHACPA will consider these recommendations for future cost collections.
