AGED CARE FUNDING MUST KEEP PACE WITH COST OF CARE: HARBISON
Harbison
Leading aged care provider Harbison warns that the Australian Government funding increase due on 1 October is a cut in real terms at the very moment the sector is expected to step up to build for an ageing Australia.
Burradoo, 17 September 2026 – Harbison, a not-for-profit aged care provider, is urging the Australian Government to lift aged care funding to at least in line with inflation, warning that the Australian National Aged Care Classification (AN-ACC) increase from 1 October 2026 is a cut in real terms.
The AN-ACC price will rise by 2.55 per cent from 1 October 2026, from $295.64 to $303.19 per resident per day.
Harbison CEO David Cochran said by the Government not meeting the annual national inflation rate of 3.5 per cent the sector would be forced to provide less care at a time when demand for services is rising.
“Let’s be clear: the Government’s investment in aged care has worked,” said Mr Cochran.
“There has been real progress, and it should be recognised. Older Australians are receiving 7.1 million more minutes of care every day and the share of homes rated good or excellent has risen from 54 per cent to 79 per cent.”
“However, to deliver the services and facilities older Australians need, the AN-ACC price must keep pace with the true cost of care. When funding falls behind costs, the first things at risk are time with residents, skilled and stable staff, and the confidence for providers to keep doors open.”
Harbison strongly supports fair pay for aged care workers and welcomes the Government’s commitment to fund recent Fair Work Commission decisions, including this year’s 4.75 per cent Annual Wage Review.
“But wage rises must be fully funded, not quietly absorbed by providers already run to the zero margin the pricing authority is directed to target,” Mr Cochran said.
Southern Highlands-based Harbison has commenced construction on the Stage 2 Burradoo project, a new 72-place aged care home, which received a $27.5 million Commonwealth capital grant and is due to open in 2027.
“While we are grateful for the Commonwealth, letting the AN-ACC funding slip backwards while asking us to build for the future sends the wrong signal – to workers, to providers, and the families who trust us with their loved ones,” Mr Cochran said.
“The Government says Australia needs around 10,000 additional aged care beds every year. Its Budget funds incentives for 5,000, and last year the sector built only a fraction of that. Delivering at that scale – along with the workforce and the technology that good care depends on – requires funding providers can rely on from one year to the next.”
Harbison thanks the ongoing support of Carol Berry MP, Federal Member for Whitlam, who has been a consistent friend to older Australians and our community.
“We look forward to Ms Berry opening our new home in 2027 (in Burradoo) and for advocating to Government for funding to keep pace with costs,” Mr Cochran said.
About Harbison: Harbison is the largest and longest serving not-for-profit aged care provider in the Southern Highlands of NSW, with homes in Moss Vale and Burradoo, near Bowral. Harbison has been recognised with awards for design excellence, active ageing, dementia innovation, and falls detection technology. David Cochran is an Ageing Asia Global Ageing Influencer who proudly leads a team of more than 360 people based on values of respect, optimism, authenticity, and dedication.
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