Impact analysis of alternative arrangements for allocating residential aged care places

Page last updated: 28 June 2019


As part of the 2018-19 Budget More Choices for a Longer Life package, in-principle support was provided to move from the current approach of allocating residential aged care places, through the Aged Care Approvals Round (ACAR), to alternative arrangements that encourage greater consumer choice. The Budget measure responds to recommendations in the Legislated Review of Aged Care 2017 (Tune Review). The Tune Review made three recommendations in this area:

  • Recommendation 3: Discontinue the ACAR for residential care places, instead assign places directly to consumers within the residential care cap, with changes to take effect two years after announcement.
  • Recommendation 4: Announcement on ACAR discontinuation be accompanied by appropriate provisions to ensure continuing supply of residential care services in areas with limited choice and competition.
  • Recommendation 8b: In discontinuing the ACAR for residential care, review how best to ensure adequate supply and equitable access to residential respite care.

Prior to progressing to an alternative model, a detailed analysis of the potential impacts of such an arrangement on all stakeholders is to be completed. No decisions have been made about any changes to the ACAR or to any implementation or transition arrangements at this time.

Current status

The Centre for Health Economics Research and Evaluation (CHERE) at the University of Technology Sydney, in collaboration with aged care accounting and business advisory firm StewartBrown and the Department of Health, are undertaking the impact analysis. Work is underway to understand potential implications of moving to an alternative allocation model.

A discussion paper setting out two proposed alternative models for allocating residential aged care places is currently available for feedback on the Consultation Hub . Suggestions for other allocation models that encourage consumer choice and promote a more consumer driven market in residential aged care are also welcome.

There are two ways to have your say:

1.    Online Survey

Respond to the online survey on the Consultation Hub . The online survey closes 13 September 2019; and/or

2.    Consultation Forum

Participate in a discussion forum in your capital city or teleconference discussion in non metropolitan areas. Please submit your expression of interest (EOI) to attend via Eventbrite  by 15 July 2019. Forums are in planning to be held in August/September. Please note that places are limited and submitting an EOI does not guarantee an invitation.

Shortly following the consultation period, we intend to publish stakeholders' responses to the Online Survey where consent has been provided; and a summary of key themes identified during the forums.

Stakeholders’ feedback will be used to develop a comprehensive understanding of the potential implications (benefits, complexities and risks) of moving to an alternative model for allocating residential aged care places and will help to inform decisions on potential future reform.

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For enquiries about the impact analysis project, please email