Choosing residential aged care for yourself or a loved one is one of life’s most important decisions. Alongside finding a home that feels welcoming, safe and supportive, many families also want to understand how aged care services are funded and how care needs are assessed.
One term you may hear during the admission process is AN-ACC, which stands for the Australian National Aged Care Classification funding model.
While AN-ACC operates largely behind the scenes, it plays an important role in ensuring aged care providers receive funding that better reflects the individual care needs of residents. Under Australia’s aged care reforms and the new Aged Care Act 2024, understanding AN-ACC can help families feel more informed and confident when navigating residential aged care.
What is AN-ACC?
AN-ACC is the Australian Government’s funding model for residential aged care. Introduced nationally in 2022, it replaced the previous Aged Care Funding Instrument (ACFI).
The purpose of AN-ACC is to provide funding that more accurately reflects the level of care and support a resident requires. Rather than focusing heavily on documentation processes, the model is designed to better recognise the actual care needs of older people living in residential aged care.
Under AN-ACC, each resident receives a classification based on an independent assessment of their care requirements. This classification helps determine the funding provided to the aged care home to support the resident’s care needs.
How Does the Assessment Work?
After a person enters residential aged care, an independent assessor conducts a funding assessment.
Importantly, the assessor is separate from the aged care provider, helping to ensure the process is objective and focused on the resident’s needs.
The assessment considers factors such as:
- Physical ability and mobility
- Cognitive function and memory
- Behavioural support needs
- Mental health and emotional wellbeing
- Complex clinical care requirements
Following the assessment, the resident is assigned an AN-ACC classification that reflects their level of care need.
What Does This Mean for Residents and Families?
For families, one of the most important things to understand is that AN-ACC is primarily a funding mechanism. It is not a rating of a person’s worth, independence or quality of life.
Instead, it is a way for government funding to better align with the care resources required to support each resident.
A higher care classification generally means the resident requires more intensive support, clinical care or supervision, resulting in additional funding being provided to the aged care home.
This funding helps providers deliver services such as:
- Personal care assistance
- Nursing care
- Dementia and cognitive support
- Mobility and falls prevention programs
- Clinical monitoring and complex care management
Will AN-ACC Affect What Families Pay?
For most families, AN-ACC does not directly determine the fees they pay.
Accommodation payments, basic daily fees and any applicable means-tested contributions continue to be assessed through separate government arrangements.
Instead, AN-ACC determines the level of government funding paid to the aged care provider to support the resident’s care needs.
This means families can be reassured that a resident with more complex care requirements attracts additional funding intended to help ensure appropriate staffing, clinical care and support are available.
How Does AN-ACC Align with the New Aged Care Act 2024?
The new Aged Care Act 2024 places a stronger emphasis on the rights, dignity, wellbeing and individual needs of older people.
While AN-ACC remains the residential aged care funding model, it operates within a broader reform environment that focuses on:
- Person-centred care
- Higher quality and safety expectations
- Greater transparency and accountability
- Improved clinical governance
- Stronger protections for older people
Together, these reforms aim to ensure funding, care delivery and regulatory oversight are better aligned with the needs and expectations of residents and their families.
What Questions Should Families Ask?
When considering residential aged care, families may wish to ask:
- How are residents assessed after admission?
- How does the home respond when a resident’s care needs change?
- What clinical services are available onsite?
- How does the organisation monitor quality and safety outcomes?
- How are care plans reviewed and updated?
A quality aged care provider should be able to explain these processes clearly and demonstrate how care is tailored to each resident’s individual circumstances.
Looking Beyond Funding
While AN-ACC is an important part of the aged care system, families should remember that funding classifications tell only part of the story.
The culture of the home, the quality of relationships, staff experience, clinical expertise and the overall wellbeing of residents are equally important considerations.
The best aged care communities combine strong clinical care with compassion, dignity, meaningful engagement and a genuine commitment to helping older people live well.
If you are exploring residential aged care options for yourself or a loved one, understanding AN-ACC can provide reassurance that care funding is designed to better reflect individual needs while supporting the delivery of safe, high-quality care.