Preparing for the coming changes to care minute funding

From April 2026, the way care minute funding flows to residential aged care providers will fundamentally change, not in amount, but in structure. 

The change only applies to non-specialised services in metropolitan areas (MMM 1) only.

The Base Care Tariff (BCT) will be split into a fixed base plus a care minutes supplement, on a sliding scale dependent on performance against mandated RN and total care minutes.

Under the current model, the imperative was largely compliance-based: ensure care minutes add up to the mandated targets. Over-delivery felt safer than underperformance.

But in the upcoming model, providers are being asked and funded to be sharper.

The care minutes supplement is performance-contingent, meaning:

• you must meet the care minute targets to receive the full BCT,
• with no additional funding for exceeding them,
• and you wear the wage cost of any over-delivery.

Strategic Rostering in the New Model

The transition to care minute targets has reshaped how providers must approach rostering. What used to be a loose directive to “just meet the target” is now a more exacting challenge:

Delivering on this requires a more deliberate strategy across three core domains:

Skills Mix Optimisation

Optimising skill mix isn’t just about assigning tasks, it’s about building capability.

We’ve seen strong outcomes where providers design rosters with flexibility in mind. Enabling staff to work across units or shifts:

• Reduces agency reliance
• Builds workforce agility
• Strengthens continuity of care
• Deepens staff-resident familiarity

This internal mobility strengthens teams while supporting care consistency and professional growth.

Shift Design and Distribution

Many services still operate with legacy rosters - structures built for a different care profile.

In practice, simple changes can make a big difference:

• Start time adjustments to better align with resident routines
• Shift overlaps timed to coincide with high-care periods
• Length variations that match staff preferences with service demand

These tweaks can improve coverage, reduce fatigue, and increase satisfaction - without increasing cost.

Avoiding Margin Erosion

In a capped funding environment, over-delivering care minutes equals lost margin. Yet, under-delivering creates risk. The solution isn’t arbitrary buffer hours, it’s data-informed contingency planning.

We recommend using operational insights to create targeted buffer shifts that protect against short-term volatility without undermining financial performance.

Key data inputs include:

• Historical roster vs. actual delivery gaps
• Sick leave trends (e.g. seasonal spikes)
• Annual leave usage patterns
• Frequency of unplanned absences
• Short-notice shift drops (e.g. casual no-shows)

Importantly, this buffer is:

• A mitigation, not a 1:1 replacement
• Informed by the net effect of leave replacement success, not idealised plans
• A tool to support compliance and protect margins

Final Thoughts

This isn’t just a funding change, it’s a mindset shift. Providers who reframe rostering as a precision tool, not just an operational necessity, will be better positioned to thrive under the new care minute model.

In the upcoming funding environment, every minute matters, but so does every dollar.

How We Help

Precision-based rostering is achievable with the right strategy, real workforce data, and internal capability. 

We support providers to move beyond compliance and into models that protect margin, sustain teams, and uphold care quality.

See our Sustainable Human Resources Services