The Australian National Aged Care Classification (AN-ACC) replaced the Aged Care Funding Instrument (ACFI) as the funding model for residential aged care from 1 October 2022. For providers, understanding how AN-ACC classification drives funding is not optional — it directly affects revenue, staffing levels, and regulatory standing. This AN-ACC funding guide for aged care covers how the model works, what the assessment process involves, and which governance documents your organisation needs.
What AN-ACC Is and Why It Replaced ACFI
ACFI had been in place since 2008 but attracted criticism for producing inconsistent funding outcomes and creating incentives for documentation gaming rather than genuine care delivery. AN-ACC was developed following the Royal Commission into Aged Care Quality and Safety as a more transparent, clinically grounded alternative.
Under AN-ACC, each resident is assigned one of 13 classes based on their assessed care needs and a fixed price is attached to that class. An independent assessor from a government-contracted organisation (not the provider) conducts each assessment. This separation is deliberate: it removes the conflict of interest that existed when providers could influence their own funding outcomes through documentation practices.
The result is a model where funding follows clinical complexity rather than documentation volume. Providers must focus on delivering the right care rather than on coding it correctly.
How the AN-ACC Assessment Process Works
When a new resident enters a residential aged care facility, a referral for an AN-ACC assessment is lodged through the My Aged Care system. An independent assessor then conducts a face-to-face assessment, typically within a few weeks of entry.
The assessor uses a validated tool to capture information across several domains, including activities of daily living, behaviour, cognition, and complex care needs such as wound management or palliative care. The resident's treating clinicians and care team can provide relevant clinical information to inform the assessment, but the classification decision rests with the assessor.
Once the classification is assigned, the provider receives a daily care subsidy at the rate attached to that AN-ACC class. Classifications can be reviewed when a resident's care needs change significantly, either through a provider-initiated review or a scheduled reassessment.
The 13 AN-ACC Classes Explained
The 13 AN-ACC classes range from Class 1 (lower care needs) through to Class 13 (the highest clinical complexity). Each class carries a different funding rate. Residents in higher classes — typically those with complex dementia, palliative care needs, or severe functional impairment — attract significantly higher subsidies.
There is also a separate funding supplement for residents in Class 1 who are assessed as having low care needs. These residents attract the Base Care Tariff rather than a class-specific supplement.
Providers cannot choose which class a resident falls into, and documentation alone will not change the outcome. Classification is based on the assessor's direct clinical judgement during the in-person visit.
Care Minutes Requirements and the Link to AN-ACC
One of the most significant policy changes tied to the AN-ACC transition was the introduction of mandatory care minutes targets. From 1 October 2023, all residential providers must meet a national minimum average of 200 care minutes per resident per day, including at least 40 minutes of registered nurse time.
Individual facilities also have a target derived from their resident mix — their AN-ACC-weighted care minutes target. This means a facility with a more clinically complex population will have a higher daily target than one with lower-acuity residents. Providers must publish their actual care minutes data on the My Aged Care website so that residents and families can compare facilities.
Failure to meet care minutes targets is a compliance issue under the Aged Care Act and can trigger regulatory action. The Aged Care Quality and Safety Commission monitors provider performance and has the power to impose sanctions where targets are not met.
What Providers Need to Have in Place
AN-ACC funding sits within a broader governance framework. Providers need documented policies that address how assessments are initiated, how clinical information is collected and shared with assessors, and how classification reviews are managed. These documents must align with the Aged Care Quality Standards and be available for inspection during accreditation audits.
The AN-ACC Assessment and Funding Policy Template from Governa covers exactly this ground — including referral procedures, how providers contribute clinical information to the assessment, and care minutes monitoring obligations.
Your governance framework should also address how AN-ACC outcomes are reported to the governing body and how funding performance feeds into clinical governance processes. The Accreditation and Regulatory Audit Management Policy is a useful companion document because AN-ACC classification can come under scrutiny during accreditation and unannounced visits.
For providers building out their full policy architecture, the Governa Aged Care Frameworks section maps out how AN-ACC-related documents connect to your broader clinical and governance structure.
Reassessments and When to Request a Review
Providers have the right to request a reassessment when a resident's clinical needs change materially. This most commonly occurs after a significant health event such as a stroke, fall with injury, or a rapid decline in cognition or function. There is also a routine schedule of reassessments for all residents over time.
Requests for reassessment should be clinically grounded. A reassessment request that is not supported by documented changes in the resident's care needs is unlikely to result in reclassification, and repeated unsubstantiated requests can attract regulatory attention. Good clinical documentation practices are not just a compliance requirement — they are the foundation for a credible reassessment case.
Providers should keep accurate records of any clinical events, care plan changes, and nursing assessments that support a reassessment request. Review the Governa Policy Mapping to Standards to check that your AN-ACC-related policies align with the relevant quality standards.
AN-ACC and Home Care: A Different Funding Model
It is worth noting that AN-ACC applies only to residential aged care. Home care and support at home services operate under a different funding structure. If your organisation delivers both residential and community-based care, your team needs to understand where AN-ACC applies and where it does not. For more context on community-based funding, see Understanding Home Care Costs.
The Governa Assurance Guides provide additional support for providers preparing for audits where funding accuracy and care minutes compliance are likely areas of focus.
Related Resources
- AN-ACC Assessment and Funding Policy Template
- Accreditation and Regulatory Audit Management Policy
- Governa Aged Care Frameworks
- Governa Policy Mapping to Standards
- Understanding Home Care Costs
- Governa Assurance Guides
- Aged Care Quality and Safety Commission
Common Questions About AN-ACC Funding in Aged Care
1. What is AN-ACC and how does it differ from ACFI?
AN-ACC is the Australian National Aged Care Classification, which replaced ACFI in October 2022. The key difference is that assessments are now conducted by independent assessors rather than by providers, removing the provider's ability to influence classification outcomes through documentation. Funding is determined by clinical complexity across 13 classes, each carrying a fixed daily subsidy rate.
2. Who conducts AN-ACC assessments?
Independent assessors contracted by the Australian Government — not the provider — conduct AN-ACC assessments. Assessors use a validated clinical tool during a face-to-face visit with the resident. Providers can contribute clinical information but cannot determine the classification outcome.
3. How do care minutes requirements connect to AN-ACC?
AN-ACC class determines a facility's individual care minutes target. Higher-acuity populations attract higher targets. All facilities must meet the national minimum of 200 care minutes per resident per day (including 40 minutes of RN time), but facilities with more complex residents face higher facility-specific benchmarks.
4. When should a provider request a reassessment?
A reassessment request is appropriate when there is a documented, material change in a resident's care needs — such as after a fall, stroke, or significant functional decline. Requests must be clinically supported. Speculative requests without documented clinical evidence are unlikely to succeed and may raise questions during audits.
5. What policy documents does an AN-ACC provider need?
Providers need a policy covering AN-ACC referral, assessment contribution, classification review, and care minutes monitoring. This should sit within a broader clinical governance framework and be linked to audit management processes. Governa's AN-ACC Assessment and Funding Policy Template provides a ready-made starting point aligned to the Quality Standards.
