Wednesday, October 7, 2026

Interim funding rule Removes 53,000 clients from official aged care waitlist

53,718 people vanished from Australia’s aged care waitlist after a methodology change, removed once interim 60% payments start, not full funding. Providers report clients waiting up to five months, with the missing 40% never backdated.

Published on 25 August 2026 (Last updated on 27 August 2026)

Black and white picture of older people lining up
Image: Canva

The Department of Health, Disability and Ageing has changed the methodology used to calculate the national in-home aged care waitlist, resulting in more than 53,000 fewer people being counted as waiting for full funding since November last year, a Four Corners investigation has confirmed.

The mechanism

Under the Support at Home reforms, which took effect on November 1, more than 90 per cent of approved recipients are now issued an interim payment set at 60 per cent of their assessed funding level. Recipients typically remain on the interim rate for an average of 10 weeks before transitioning to their full package, though wait times beyond this average have been reported by providers.

Under the counting method used consistently since public reporting began in 2017, recipients remained on the official waitlist until they received their full approved package. Under the current methodology, recipients are removed from the waitlist as soon as the 60 per cent interim payment begins, regardless of whether they have received their assessed funding level.

The numbers

  • Official waitlist (31 March 2026): 100,191
  • Waitlist under the pre-reform counting method: 153,909
  • Difference attributable to the methodology change: 53,718
  • Recipients on interim (60 per cent) funding: more than 90 per cent of new packages
  • Average time on interim funding: 10 weeks

The discrepancy was identified by cross-referencing Senate estimates evidence given on 2 June with published department figures.

Provider experience

Providers report limited or no advance guidance from the department on the rationale for the interim funding structure at the time of its introduction. Flexi Care general manager Adrian Morgan told this masthead the 60 per cent rate had not been explained to providers when queried directly, beyond confirmation that it was permitted under the relevant provision of the 2024 Act. Morgan said clients had, in some cases, remained on the interim rate for up to five months, with the withheld 40 per cent not backdated or reimbursed once full funding commenced.

Sector and government response

Former acting inspector-general of aged care Ian Yates has called on the department to report interim-funded clients as a distinct, publicly monitored category, describing the current approach as unacceptable.

Aged Care Minister Sam Rae has disputed characterisation of the change, stating the waitlist has always been calculated on the current basis and that recipients are correctly excluded once they begin receiving funding “at the level they have been assessed for.” The department’s own figures, and its evidence to Senate estimates, indicate the counting basis changed at the point Support at Home was introduced.

Implications for providers

For providers managing clients transitioning through the interim funding period, the practical exposure is twofold:

  1. Revenue and cash flow: Clients funded at 60 per cent for extended periods represent a service delivery gap; providers may need to absorb, defer, or manage through care plan adjustments until full funding is confirmed.
  2. Reporting and advocacy: The gap between officially reported and actual demand may affect sector-wide workforce planning, capital investment decisions, and government engagement premised on published waitlist figures.

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