Impact analysis of alternative arrangements for allocating residential aged care places

Page last updated: 26 March 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 to 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.

The in-principle support is subject to a detailed analysis of the potential impacts on all stakeholders. No decisions have been made about any changes to the ACAR or to any implementation or transition arrangements.

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. A report is expected in mid-2019. Work is underway to understand potential implications of moving to an alternative allocation model.

Consultation will begin shortly on proposed alternative models and issues relating to potential impacts, including implementation and transition arrangements. 

There will be two ways to have your say:

1.    Discussion paper

You can prepare a written submission to a public discussion paper that will be available on the Department of Health’s Consultation Hub; and/or

2.    Face to face Discussion Forum

A discussion forum will be held in each capital city. There will also be opportunities for stakeholders in non-metropolitan areas to take part in discussions.

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For enquiries about the impact analysis project, please email