Residential Care Subsidy

Page last updated: 15 February 2019

The Australian Government pays approved providers an amount of residential care subsidy for each care recipient.

Calculating the Residential Care Subsidy

Residential care subsidy is paid monthly and is calculated by adding the amounts due for each resident for each day of the month. A provider’s residential subsidy amount for the claim period (month) is:

  1. the basic subsidy amount (Aged Care Funding Instrument (ACFI)), for each eligible permanent resident based on their classification under the ACFI;
  2. plus any primary supplements for each eligible care recipient (oxygen supplement, enteral feeding supplement);
  3. less any reductions in subsidy
  4. plus any other supplements for each eligible care recipient (accommodation supplement, hardship supplement, viability supplement, veterans’ supplement, homeless supplement).

The formula above does not apply to residential respite care recipients.  Instead, the provider receives an amount of residential respite subsidy and supplement based on whether the care recipient is eligible for low or high level residential respite care.

Providers submit a claim for each month, including the details of each resident for whom they are claiming subsidy in that month. They receive an advance payment in the first few days of each month. This advance payment is then reconciled with the claim for that month and the following month’s payment is adjusted accordingly, either by making an additional payment or by reducing the payment to adjust the total amount paid the previous month.

In certain circumstances, some other amounts may be deducted from the payments to a provider for repayment of capital grants, payment of additional recurrent funding and recovery of overpayments.

How to claim 

Claims can be submitted to the Department of Human Services by either: 

  • Entering the claim data in the Aged Care Online Claiming (ACOC) portal,
  • Posting the completed claim form to:
  • Department of Human Services
    Aged Care Payments
    GPO Box 9923
    SYDNEY NSW 2001


For enquiries about claims processing and payments, email

For enquiries about aged care subsidies and supplements, email

More information