Care minutes audits: The next compliance test for aged care providers

The Department of Health, Disability and Ageing has confirmed that from the 2025–26 financial year, all residential aged care providers must submit an externally audited Care Minutes Performance Statement with their Aged Care Financial Report. 

This highlights a significant increase in compliance and reporting requirements, necessitating robust systems, verifiable evidence, and a proactive approach to scrutiny. These factors have direct implications for funding, star ratings, and overall reputation.

What’s changing

Providers must already deliver (and report) a sector minimum of 215 care minutes per resident per day, including 44 RN minutes. From April 2026, the new Care Minutes Supplement will hinge on your actual delivery, so every minute claimed must be defensible.

Key points:

• You’ll need an annual Care Minutes Performance Statement covering direct care minutes, RN minutes, labour hours, costs, and occupied bed days.
• This statement must be externally audited by a registered company auditor under ASAE 3000.
• It’s lodged with your annual Aged Care Financial Report, starting 2025–26.

This means that your rosters, timesheets, payroll, and agency hours must all reconcile with your quarterly financials — and withstand a third-party audit.

What’s at stake for providers

1. Funding at risk

The link between reported care minutes and revenue will get tighter. Deliver fewer minutes than you claim, and your Care Minutes Supplement can be clawed back. Poor record-keeping now has a direct dollar cost.

2. Star ratings and reputation

Your Staffing Star Rating depends on accurate care minutes data. Any discrepancies flagged in an audit could trigger compliance action, damage trust, and impact your ability to stand out in a competitive market.

3. Time and cost pressure

The Department says the audit cost will be “modest” — but some providers are already flagging the time burden of pulling together evidence, reconciling multiple systems, and supporting a new annual audit process on top of tight rosters and budgets.

Sector voices are calling for clearer templates and practical examples to reduce confusion, an area to watch in the Department’s future updates.

What to do now

Test your data flow

Stress-test your rostering, timesheet and payroll data now. Can you track direct care minutes and RN minutes, broken down by staff type and costs? Can you reconcile these to your quarterly reports?

Tighten record-keeping

Auditors will want to review source records, including rosters, timesheets, and agency invoices. If you rely on manual or inconsistent systems, invest in tightening them now.

Plan your audit scope

If you use a different firm for your financial statement audit, engage them early. Clarify scope, timeline, and budget. Larger providers are already trialling mock audits to find gaps.

Stay across guidance

The Department has committed to releasing more webinars, FAQs and templates. IHACPA has indicated that audit costs will be factored into future pricing. Keep your board and leadership teams briefed.

Department of Health, Disability and Ageing — Care Minutes Performance Statement update (read it here).