Aged Care Funding Project

Aged Care Funding Project

The following information is based on information from the Australian Government Department of Health website (

Work is underway to investigate alternative approaches for residential aged care funding that delivers more certainty and stability. The government has been engaging with the sector on the development of longer-term reform options.

Resource Utilisation and Classification Study

The Minister for Aged Care announced in August 2017 that the Australian Health Services Research Institute at the University of Wollongong has been engaged to undertake a Resource Utilisation and Classification Study (RUCS). The purpose of this study is to determine the drivers of costs in residential aged care and to develop a resident classification system and funding model that reflects these drivers. This will inform the Government’s consideration of future reform options.

Further information on the study can be found on the RUCS factsheet.

Alternative Aged Care Assessment, Classification Systems and Funding Models, University of Wollongong

The department engaged the University of Wollongong to develop options and recommendations to help inform the design of future residential aged care funding models.

Download or view the Alternative Aged Care Assessment, Classification System and Funding Models Report


A stakeholder consultation roadshow was conducted in locations across Australia during June and July this year. At these sessions the University of Wollongong options and recommendations were presented. Download or view slides from the seminar: An alternative funding model for residential aged care.

LocationDate - 2017
SydneyThu 8 June
Port MacquarieFri 9 June
MelbourneTue 13 June
CanberraFri 23 June
AdelaideTue 4 July
Mount GambierWed 5 July
HobartThu 6 July
BrisbaneTue 11 July
TownsvilleWed 12 July
PerthMon 17 July

A live webinar on the University’s report was also held on 17 May 2017. View the webinar recording.

Enquiries to the Department of Health

ACFI Policy Mailbox:
Resource Utilisation and Classification Study Mailbox:

More information

General information on the Aged Care Funding Instrument

In the media

The Hon Ken Wyatt AM, MP (Minister for Aged Care, Minister for Indigenous Health) Media release: New Study Provides Insight into Residential Care Costs. The Australian Government has announced the start of a landmark investigation of the comparative costs of providing residential aged care to older Australians with varying needs. 15 August 2017.

Aged care review to iron out wrinkles. PS News, Independent News For The Australian Public Service. Edition Number 565. Updated 22 August 2017.

New investigation into residential aged care costs come as new ‘user-friendly’ website is activated. Talking Aged Care, Aged Care Guide. 17 August 2017.

New Study into Residential Care Costs. Pro Bono Australia News. 16 August 2017.

Last reviewed: 16 October, 2017


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