Aged care capital funding: new payments from 1 January 2027
Aged care capital funding for residential homes is getting a welcome lift. Services Australia has confirmed that two new payments for residential aged care homes will begin on 1 January 2027. They are designed to help eligible homes cover the cost of building new facilities or significantly expanding existing ones.
Two rates, two timeframes
The New Home Payment is $30 per day for each supported and respite resident in a newly established home, paid for up to 25 years.
The Significant Expansion Payment is $15 per day for each supported and respite resident in a significantly expanded home, paid for up to 15 years.
Because both are daily rates paid over many years, the money adds up. For a provider weighing up whether to build or extend, that long-term certainty could make a real difference.
How homes will receive the aged care capital funding
Homes won’t need to fill in a separate application. The payments will be calculated and paid through the monthly claims process that Services Australia already uses for aged care payments.
The Department of Health, Disability and Ageing will decide which homes are eligible and pass that information to Services Australia, which will then process the payments.
These measures were announced in the 2026–27 Budget, and their start depended on legislation being passed. Providers should keep an eye on Department updates for the detailed eligibility rules on this aged care capital funding.
also read: ACT Education Equity Fund 2026: What Canberra Families Can Claim
General information only, not legal advice. Check the official source before acting.
Source: Services Australia. Licence: CC BY 4.0.
