Base Care Tariff (BCT)
The Base Care Tariff is the fixed subsidy component of Australian Government funding for permanent residential aged care under the AN-ACC (Australian National Aged Care Classification) model. While each resident's care needs generate a variable funding amount based on their individual AN-ACC classification, the BCT covers shared care costs that remain relatively stable across all residents in a home.
Every residential aged care service in Australia receives a BCT. The category assigned to a service directly affects the daily rate of government funding it receives for every occupied bed.
Quick Definition
The Base Care Tariff is a fixed daily government subsidy paid to residential aged care providers in addition to each resident's individual AN-ACC funding. The amount a service receives depends on its geographic location and whether it holds an approved specialisation. BCT funding is set at the service level, not the resident level.
Key Facts at a Glance
- The BCT is a fixed daily subsidy paid separately from each resident's variable AN-ACC class funding
- There are six BCT categories, based on a service's Modified Monash (MM) location and any approved specialisation
- The daily BCT amount is calculated as: AN-ACC starting price x BCT NWAU weight
- From 1 October 2025, the AN-ACC starting price is $295.64 per NWAU
- Standard BCT categories are assigned automatically based on MM location; specialised categories require departmental approval
- From April 2026, changes to AN-ACC funding rates will not affect services in MM 2–7 locations or those holding a specialised homeless BCT
What Does the Base Care Tariff Cover?
The BCT funds care-related costs that do not vary significantly from one resident to the next or with small changes in occupancy. These are structural costs tied to the home's operating environment: its geographic location, the population it serves, and the level of resourcing required to deliver care in that setting.
A service in a remote community faces fundamentally different staffing and supply pressures than an inner-city facility. The BCT accounts for this by providing location-adjusted funding that reflects those structural differences.
How the BCT Fits Into AN-ACC Funding
Under AN-ACC, a permanent care resident's daily government funding comes from two components:
| Component | What It Covers | Set At |
|---|---|---|
| Variable (AN-ACC class) | Individual resident's care needs | Resident level (Classes 1–13) |
| Fixed (Base Care Tariff) | Shared, location-based care costs | Service level (MM category or specialisation) |
Both components use Nationally Weighted Activity Units (NWAUs) as their common currency. The total daily subsidy for a resident equals the AN-ACC starting price multiplied by the combined BCT NWAU weight and the resident's class NWAU weight.
Pricing for the AN-ACC model is set by the Independent Health and Aged Care Pricing Authority (IHACPA) and reviewed periodically by the Australian Government.
The Six BCT Categories
BCT categories are determined by the Modified Monash Model (MMM), which classifies geographic locations from MMM 1 (major metropolitan areas) to MMM 7 (very remote communities). Services in more remote locations generally attract a higher BCT to reflect the increased cost of delivering care in those settings.
| BCT Type | Location / Status | How It Is Assigned |
|---|---|---|
| Standard (MM 1) | Major metropolitan areas | Automatic |
| Standard (MM 2–3) | Regional centres and large rural towns | Automatic |
| Standard (MM 4–5) | Medium and small rural towns | Automatic |
| Standard (MM 6–7) | Remote and very remote communities (non-specialist) | Automatic |
| Specialised: Homeless | Services providing specialist homeless programs | Requires departmental approval |
| Specialised: Remote ATSI | Remote and very remote services specialising in Aboriginal and Torres Strait Islander care (MM 6–7) | Requires departmental approval |
For exact NWAU weights and current dollar rates for each category, refer to the AN-ACC Funding Guide published by the Department of Health, Disability and Ageing.
Specialised BCT Status
Two specialised BCT categories are available for services that meet specific eligibility criteria. Unlike standard categories, these are not automatically assigned. A provider must apply through the Department of Health, Disability and Ageing and receive a formal determination before accessing specialised BCT funding.
Specialised Homeless BCT
A service is eligible for the Homeless BCT if it meets both of the following conditions:
- It provides specialist homeless programs, or has given a written undertaking that it will begin providing such programs within three months of the application date, and
- On the day before the application was made, at least 50% of its non-respite care recipients demonstrated complex behavioural needs and social disadvantage associated with a background of homelessness
Providers should maintain clear documentation of their resident cohort demographics to support an application for this status.
Specialised Remote and Very Remote ATSI BCT
A service is eligible for this category if it meets both of the following conditions:
- It is located in a remote (MMM 6) or very remote (MMM 7) area, and
- It specialises in providing care to Aboriginal and Torres Strait Islander peoples
How BCT Funding Is Paid
BCT funding is paid on a per occupied place or per operational place basis, depending on the service's BCT category. This means a provider's BCT revenue is directly tied to occupancy levels. Monitoring occupancy is therefore an important part of managing AN-ACC funding performance across a service.
April 2026 Funding Changes
From April 2026, the Australian Government will apply changes to AN-ACC funding rates. Services in regional, rural, and remote areas (MM 2–7) and those holding a specialised homeless BCT will not be adversely affected by these changes. This provides a degree of funding certainty for providers in those categories during a period of broader AN-ACC reform.
Providers in MM 1 locations without specialised status should review the April 2026 changes with their finance team to understand the impact on their daily subsidy rates.
Frequently Asked Questions
Can a service's BCT category change over time?
Standard BCT categories adjust automatically if a service's Modified Monash classification changes, for example following a review of geographic boundaries. Specialised BCT status, however, must be actively applied for and is not automatically granted or renewed. Providers who believe they may qualify for a specialised category should contact the Department of Health, Disability and Ageing to discuss eligibility.
How often is the AN-ACC starting price updated?
The starting price is reviewed and updated by the Government on a periodic basis. From 1 October 2025, the price is $295.64 per NWAU. Providers should monitor announcements from the Department of Health, Disability and Ageing, as changes to this price directly affect the dollar value of both BCT and variable AN-ACC payments.
Does BCT funding count toward care minutes targets?
No. The BCT is general care-cost funding set at the service level. Care minutes targets, including registered nurse hours requirements, are tracked and funded through separate mechanisms, including the care minutes supplement.
What is a Nationally Weighted Activity Unit (NWAU)?
An NWAU is the pricing unit used across the AN-ACC model. Both the BCT component and each resident's individual AN-ACC class weight are expressed in NWAUs. Multiplying the total NWAU figure by the current AN-ACC starting price gives the dollar value of the daily subsidy. Pricing for the NWAU is set by IHACPA and reviewed annually.
What happens to BCT funding if a service's occupancy drops?
For categories paid on a per occupied place basis, BCT revenue falls when occupancy decreases. For categories paid on a per operational place basis, funding is based on the number of approved places regardless of whether they are occupied. Providers should confirm which payment basis applies to their specific BCT category and factor this into financial planning.
Related Terms
