Key Highlights

  • Regis Healthcare shares fell 30.22% to $4.11 on 3 September 2026 following the Australian Government's announcement of a 2.55% increase to the AN-ACC starting price.
  • The AN-ACC starting price will rise from $295.64 to $303.19, effective 1 October 2026, while the hotelling supplement will remain unchanged at $22.15 per resident per day.
  • Regis has assessed the 2.55% increase as significantly below prevailing cost Inflation across the sector, including a 4.75% Annual Wage Review increase and CPI growth of 3.8% in the twelve months to June 2026.
  • The company continues to pursue initiatives including room price increases, rollout of Higher Everyday Living Fee services, and other Revenue optimisation and operational efficiency measures to mitigate Margin pressure.

Regis Healthcare Limited (ASX:REG) shares traded at $4.11, down 30.22% on the day, after the company acknowledged the Australian Government's announcement on 2 September 2026 that the Australian National Aged Care Classification (AN-ACC) starting price will increase 2.55% from $295.64 to $303.19, effective 1 October 2026. The Government also confirmed that the hotelling supplement will remain unchanged at $22.15 per resident per day.

The increase in the AN-ACC price reflects the Australian Government's annual pricing determination, based on advice from the Independent Health and Aged Care Pricing Authority (IHACPA). The Government has also confirmed that current care minute requirements and AN-ACC fixed and variable funding categories will be maintained.

Regis' Assessment of the Funding Outcome

In Regis' assessment, the headline 2.55% increase to the AN-ACC starting price is significantly below prevailing cost inflation across the sector and the broader economy. The company pointed to a 4.75% increase from the Annual Wage Review for all award-based workers, effective 1 July 2026, and increases of between 1.5% and 4.4% under the final stage of the Fair Work Commission's Aged Care Work Value Case for registered nurses and enrolled nurses, effective 1 August 2026.

The company also cited wage increases under Enterprise Agreements and Consumer Price Index growth of 3.8% in the twelve months to June 2026 as factors contributing to cost pressures that the AN-ACC increase does not fully address.

Company Response and Mitigation Strategies

Regis stated it is disappointed that the funding outcome does not reflect the underlying cost of care, and that adequate sector funding is required to encourage new greenfield developments at a time when Demand for residential aged care continues to grow. The company noted it is undertaking a range of initiatives to mitigate ongoing margin pressure associated with government funding settings.

These initiatives include increases to room prices, the rollout of Higher Everyday Living Fee (HELF) services, and other revenue optimisation and operational efficiency measures, as previously announced by the company.

Conclusion

Regis Healthcare's shares fell sharply following the Government's confirmation of a 2.55% AN-ACC pricing increase to $303.19 from 1 October 2026, with the company characterising the increase as trailing prevailing wage and cost inflation across the sector, reiterating its focus on room price increases, Higher Everyday Living Fee rollout and other efficiency initiatives to offset ongoing margin pressure from government funding settings.