Australia’s aged care sector has undergone a significant transformation with the introduction of the Australian National Aged Care Classification (AN-ACC) Funding Model. This innovative approach to funding has not only revolutionised the way aged care services are provided but has also brought about a wave of change in the sector’s dynamics. In this article, we delve into the intricacies of AN-ACC Funding, its implications, and what the future holds for aged care in Australia.

AN-ACC Funding Explained

AN-ACC introduces a comprehensive assessment system that takes into account various factors, such as an individual’s medical condition, care requirements, and support needs. Unlike its predecessor, the Aged Care Funding Instrument (ACFI), which primarily focused on residents’ dependency levels, AN-ACC delves deeper into the unique aspects of each individual’s care needs.

So, how exactly does AN-ACC work?

AN-ACC utilises a two-step process to determine the appropriate funding allocation for aged care facilities. The first step involves a comprehensive assessment of the resident’s health and care needs, conducted by qualified assessors. This assessment generates what is called a “Classification,” which essentially categorises the resident based on their care requirements. The second step involves the funding calculation itself, where the classification is translated into funding using a predetermined formula.

What sets AN-ACC apart is its precision. By considering a range of variables such as clinical conditions, cognitive and functional abilities, and behavioural symptoms, the model provides a more nuanced picture of the care needs of residents. This means that facilities are funded not only based on the number of residents but also on the complexity and intensity of care required by each individual.

Shaping the Future of Aged Care

The implementation of AN-ACC has had far-reaching implications for the aged care sector in Australia. One of the most notable impacts is the emphasis on individualised care. With funding being allocated according to the specific needs of each resident, aged care facilities are motivated to tailor their services to cater to these unique requirements. This approach promotes a higher quality of care and a more dignified life for the elderly population.

Moreover, AN-ACC has redefined the way aged care facilities operate. Facilities are now incentivized to enhance their staff’s skills and knowledge to address the diverse needs of their residents effectively. This has led to a greater focus on training and professional development within the sector, ultimately raising the overall standards of care.

The introduction of AN-ACC has also sparked conversations about transparency and accountability. As the funding allocation is based on a clear assessment process, facilities are required to provide accurate and detailed information about the care they deliver. This level of transparency not only ensures that funding is appropriately utilised but also builds trust between facilities, residents, and their families.

Looking ahead, the future prospects of AN-ACC Funding are promising. The model’s emphasis on individualised care aligns with the evolving expectations and preferences of the ageing population. As people seek more control over their care options and desire services that cater to their unique needs, AN-ACC provides a framework that can adapt to these changing demands.

Furthermore, the AN-ACC funding model lays the foundation for ongoing improvements in the aged care sector. The data collected through the assessment process can be analysed to identify trends, gaps, and areas for improvement. This data-driven approach enables policymakers to make informed decisions about resource allocation, training priorities, and facility enhancements, ultimately enhancing the overall aged care experience.


The Australian National Aged Care Classification (AN-ACC) Funding Model marks a significant shift in the aged care landscape. Its precise and individualised approach to funding has redefined the way care is provided to the elderly population. By considering a comprehensive range of factors, AN-ACC ensures that funding is allocated fairly and effectively, resulting in improved quality of care and enhanced standards within the sector. As Australia’s ageing population continues to grow, AN-ACC stands as a beacon of change, guiding the aged care sector towards a more compassionate, tailored, and sustainable future.