Aged Care Financing Authority

Page last updated: 09 March 2018

The Aged Care Financing Authority (ACFA) provides independent advice to the government on funding and financing issues, informed by consultation with consumers, and the aged care and finance sectors.

ACFA roles and responsibilities

The committee's roles and responsibilities are set out in the ACFA Committee Principles.

  • Ms Lynda O’Grady (ACFA Chairman)
  • Mr Nicolas Mersiades (ACFA Deputy Chair)

Other ACFA members are:

  • Mr Ian Yates AM
  • Mr Gary Barnier
  • Mr John Pollaers
  • Dr Mike Rungie
  • Ms Louise Biti
  • Ms Susan Emerson

ACFA members' biographies

ACFA Work Program

ACFA’s work program is set by a combination of legislative requirements (for example the requirement to provide an Annual Report) and Ministerial direction.

Appointment of new Aged Care Financing Authority Chair

On 4 December 2017, the Minister for Aged Care, the Hon Ken Wyatt AM, MP announced the appointment of Mike Callaghan, AM PSM, as the new Chair of the Aged Care Financing Authority (ACFA) from 1 May 2018. 

Mr Callaghan will take over from Lynda O’Grady, who is retiring from the position after two terms. Ms O’Grady’s term as Chair will end on 30 April 2018.

ACFA Annual reports

2017 ACFA Annual Report on Funding and Financing of the Aged Care Sector

Short form report – 2017 ACFA Annual Report on Funding and Financing of the Aged Care Sector

The Aged Care Financing Authority (ACFA) presented its 2017 Report on Funding and Financing of the Aged Care Sector to the Government on 26 July 2017.  This report examines the developments, issues and challenges affecting the sector, and provides a range of statistics and analysis of the provision of aged care in Australia. This report includes analysis of financial data collected from the 2015-16 year. The report also examines issues and trends emerging since 1 July 2016 and looks forward to challenges into the future.

This year ACFA also prepared a short form version of the 2017 Annual Report. This is a condensed executive summary style document with a snapshot of key data.

If you would like a hard copy of the short form or full report or have any enquiries please email the ACFA Secretariat

2016 Report on the Funding and Financing of the Aged Care Sector

2015 Report on the Funding and Financing of the Aged Care Sector

Respite Care Project

ACFA has been tasked by the Minister offor Aged Care, the Hon Ken Wyatt AM MP, with undertaking a study and reporting on the increasing use of respite care and the appropriateness of the current arrangements, including funding structures, for providers and consumers. The reporting date for this project is 31 October 2018.

A public consultation paper about respite care was issued on 9 March 2018 as part of this project. Feedback on the respite care consultation paper can be sent until 5pm Friday 13 April 2018 by email to:

or by post to:

ACFA Secretariat

Department of Health

MDP 465

GPO Box 9848

Canberra ACT 2601

Report to inform the 2016-17 review of amendments to the Aged Care Act 1997

As part of significant changes to aged care announced in 2012, a requirement for an independent review of the reforms was included in the Aged Care (Living Longer Living Better) Act 2013. The Review is being led by Mr David Tune AO, PSM.

In November 2015, the former Minister for Health and Aged Care asked ACFA to provide advice on funding, financing and pricing issues affecting the matters specified in the Review’s terms of reference. In particular, ACFA was asked to focus on such issues as they relate to means testing, fees, accommodation prices, access and workforce.

The report was delivered to government on 11 May 2017.

View the Report to inform the 2016-17 review of amendments to the Aged Care Act 1997.

    Report on the Bond Guarantee Scheme and potential alternative arrangements

    ACFA undertook a study examining the Bond Guarantee Scheme and alternative arrangements. The study concluded that in addition to the existing Scheme, there were two alternative arrangements that could effectively support a guarantee of the return of a resident’s lump sum accommodation payment:

    • retaining the existing Scheme, but then automatically triggering a retrospective levy on all providers to repay the Scheme’s costs
    • creating a guarantee fund pool through a levy on all providers (pooled funds would grow and be used to pay the Scheme’s costs).

    Other options

    ACFA identified insurance based alternative options as well as an industry arranged bank guarantee option, but assessed them as unlikely to be as effective. ACFA then developed and distributed a discussion paper before consulting with peak bodies as well as the sector more widely.


    In principle ACFA agreed that the Scheme’s beneficiaries should contribute to the costs of the guarantee, where the benefits of doing so outweighed the costs (this should be the case whether the existing Scheme is retained, or another model is implemented).

    The report was delivered to government on 1 May 2017 and will inform the Aged Care Legislated Review (2016-17).

    Full report on The Protection of Residential Aged Care Accommodation Lump Sum Accommodation Payments.

    Report on the Base Interest Rate Project

    ACFA was asked by the government to undertake a short study that would examine the application of the Base Interest Rate (BIR) to the refund of lump sum accommodation payments including:

    • an assessment of options; and
    • implications of any changes.

    The report was delivered to Government on 30 June 2017.

    View the Report of the Base Interest Rate Project.

    Report on access to care for supported residents

    The Aged Care Financing Authority (ACFA) was asked by government to provide advice on cost neutral mechanisms to ensure access to care for supported residents. This included reviewing the efficiency, effectiveness and appropriate level of the:

    • supported resident ratio for each aged care planning region
    • 25 per cent discount applied to the maximum accommodation supplement amount where a service does not provide more than 40 per cent of its eligible care recipient days to supported residents.

    ACFA’s work on this project involved public consultations, with an initial discussion paper being released in May 2015 seeking general submissions. This was followed by a second discussion paper in September 2016 seeking comments on ACFA’s proposed recommendations on supported residents. 

    ACFA delivered its report on access to care for supported residents to government on 11 January 2017.

    ACFA’s recommendations in their report to government were to:

    • remove the regional supported resident ratio
    • amend the administrative application of the 40 per cent supported resident ratio so that it would apply over the course of a month rather than on a daily basis.

    Full report on access to care for supported residents. 


      For more information please email:

      More information