From 10 July to 22 August 2025, we held a public consultation on the Pricing Framework for Australian Residential Aged Care Services 2026–27.

We received 47 submissions from peak bodies, residential aged care providers, government departments, carers and families, the aged care workforce, and members of the public.

We also completed 45 interviews with providers of the National Aboriginal and Torres Strait Islander Flexible Aged Care Program (NATSIFACP) and the Multi-Purpose Service Program (MPSP).

Key highlights include:

• support for improving provider participation in cost collections through culturally appropriate engagement and expanded promotion
• suggestions for MPSP funding model assessments to consider resident activity cost drivers, operational and workforce costs, and location-specific costs in thin markets
• recommendations for assessment of the NATSIFACP funding model to consider the costs of providing culturally safe care, and the operational and workforce challenges experienced by providers in very remote locations
• suggestions for adjustments to existing supplements to better support the delivery of care to residents with complex or specialised care needs
• requests for location, building design, workforce shortages and regulatory requirements to be factored into the cost of delivering everyday living services.

We released the Pricing Framework for Australian Residential Aged Care Services 2026–27 following public consultation.

The pricing framework is accompanied by the consultation report, which captures a summary of feedback received.

From 14 May to 13 June 2025, we held our public consultation on the Pricing Framework for Australian Public Hospital Services 2026–27.

We received 30 submissions from a wide range of stakeholders. This included state and territory governments, professional health organisations and the private health sector.

The consultation covered several key areas, including:

• pricing admitted acute care using Australian Refined Diagnosis Related Groups Version 12.0 for the National Efficient Price Determination 2026–27 (NEP26)
• refining the Tier 2 Non-Admitted Services Classification for NEP26 and introducing Tier 2 classes for hospital based non-admitted voluntary assisted dying services
• phasing out the coronavirus disease 2019 temporary measures for NEP26
• reviewing the block funding criteria that underpin the national efficient cost determination and the current approach for funding high cost, highly specialised therapies
• refining pricing adjustments, including for intensive care unit patients, First Nations peoples, and individuals residing in smaller jurisdictions or rural and remote areas of Australia
• exploring risk factors for inclusion in the hospital acquired complications and avoidable hospital readmissions risk adjustment models.

We have released the Pricing Framework for Australian Public Hospital Services 2026–27 following public consultation.

The pricing framework is accompanied by the consultation report, which captures a summary of feedback received and IHACPA’s response.

From 14 August to 20 September 2024, the Independent Health and Aged Care Pricing Authority (IHACPA) conducted a public consultation on the Pricing Framework for Australian Residential Aged Care Services 2025–26.

A total of 46 submissions were received from various stakeholders. This includes older Australians, carers and families, residential aged care providers, peak bodies, government departments and agencies, and researchers.

As part of the consultation, feedback was gathered on the following areas:

• Australian National Aged Care Classification (AN-ACC) branching structure and funding model
• Aboriginal and Torres Strait Islander specialisation and base care tariffs
• homeless specialisation and base care tariffs
• residential respite care
• proposed changes to IHACPA’s residential aged care pricing principles.

Key findings from the feedback include:

• support for updates to the aged care pricing principles to better reflect current aged care pricing methodologies
• stakeholder concerns that cost differences between AN-ACC classes 2 and 3 (independent mobility classes) may be related to residents experiencing cognitive impairment, mental health conditions, challenging behaviours and complex care requirements
• support for ongoing cost collections to evaluate the costs associated with residential respite care and ensure pricing advice reflects the costs to deliver services
• stakeholder concerns with the current approach to pricing and costing of allied health care, which accounts for the level of care currently provided, not the level of allied health care clinically assessed for residents
• the need to understand the costs to deliver culturally appropriate residential aged care to Aboriginal and Torres Strait Islander peoples, including workforce support
• stakeholder requests to ensure people from culturally and linguistically diverse backgrounds and marginalised groups within the homeless population receive culturally appropriate care, through investment in specialised staff training and other resources.

The Pricing Framework for Australian Residential Aged Care Services 2025–26 Consultation Report summarises the feedback received during the public consultation period.

The pricing framework and consultation report 2025–26 will inform the development of the Residential Aged Care Pricing Advice 2025–26.