Understanding AN-ACC: How aged care funding works in Australia

Author: Alexander Fereletych | Head of Funding

Choosing aged care for yourself or a loved one is a big decision. Older Australians and their families want to feel confident that the home they choose will have enough skilled and compassionate employees to support residents’ health, dignity, independence, and overall wellbeing.

One important part of the aged care system is how government funding reaches residential aged care homes. In Australia, this funding is determined by the Australian National Aged Care Classification (AN-ACC), a model designed to ensure each resident receives the right level of care based on their individual needs.

Australian aged care legislation puts the rights of older people at the centre of the system. AN-ACC ensures that homes have the resources to provide safe, high-quality, and person-centred care that supports these rights.

Here’s what you need to know.

 

What is AN-ACC in Aged Care?

AN-ACC determines how much funding an aged care home receives for each resident. This funding primarily supports wages for Personal Care Workers, Enrolled Nurses, and Registered Nurses who provide day-to-day personal and clinical care.

AN-ACC assessments are conducted by independent assessors to ensure objectivity and fairness. These assessors are qualified health professionals who complete a suite of clinical assessments by interacting with and observing the resident, reviewing clinical documentation, and consulting with staff. The Department of Health then uses this information to assign an AN-ACC class, which reflects the resident’s level of care based on their individual needs.

There are 13 AN-ACC classes for permanent residents and 3 for respite residents.

 

What does AN-ACC assess?

AN-ACC is not a comprehensive health assessment tool. It was designed specifically for funding purposes and focuses on the characteristics of residents that drive the costs of care. AN-ACC identifies a resident’s level of support across several areas:

Mobility – assistance with transfers, walking, and balance.

Activities of Daily Living – assistance with personal hygiene, dressing, grooming, and nutrition.

Cognition and Behaviour – memory, communication, social interaction, and behavioural and emotional support needs.

Complex Nursing Procedures – wound care, injections, oxygen therapy, and other technical nursing tasks.

Mobility has the strongest influence on the classification, but all areas contribute to determining funding and care requirements.

AN-ACC aims to be a fair, resident-focused system. It separates funding assessments from care planning, allowing care and services plans to be tailored to each resident’s individual needs. Importantly, unlike older funding models, AN-ACC does not reduce funding if a resident improves or regains independence. This encourages homes to support reablement, therapy, and programs that help residents maintain or enhance their abilities.

 

How AN-ACC impacts staffing and daily care

One of the most important parts of AN-ACC is the introduction of mandatory care minutes. Each AN-ACC class is allocated a government-mandated minimum care minute target. These requirements directly influence how many staff are rostered and how much time they spend with residents.

• Homes must provide a minimum number of total direct care minutes per resident per day.
• A separate target applies to Registered Nurse minutes, ensuring appropriate clinical oversight.
• Staff rosters are planned around these targets, helping ensure residents receive timely and consistent care.
• Residents benefit from more focused support—from personal care and emotional support to clinical monitoring.

For families, this means reassurance that the home is legally required to maintain adequate staffing levels.

 

What AN-ACC means when choosing an aged care home

When you’re looking for aged care, you want confidence that your loved one will receive the right level of care every day. AN-ACC plays a role in making that happen.

Here’s why it matters to you:

• Staffing levels: AN-ACC funding is linked to care minutes, which means homes must have enough qualified employees to meet residents’ needs.
• Quality care: Homes that manage AN-ACC well can plan care more effectively, ensuring residents get the support they need when they need it.
• Transparency: AN-ACC creates a clear, consistent way to match funding with care needs, so you can trust the system is fair and focused on residents.

AN-ACC assessments are completed shortly after a resident enters aged care. Reassessments can occur at any point when the home’s clinical team believes the resident’s AN-ACC class no longer reflects their current care needs and requests a reclassification. Neither initial assessments nor reassessments affect what you pay; instead, they ensure the home receives the right level of funding to provide the care your loved one needs from day one.

When choosing an aged care home, trust what you see and feel—well-staffed homes with engaged, attentive care teams are often those managing their responsibilities well, including AN-ACC.

If you’d like more information, visit the Australian National Aged Care Classification (AN-ACC) funding guide.