Recommendation 2 external of the 2024 Independent Review external, called for a rapid review of pricing and contracting for residential care and for funding to be maintained at current levels until this work was completed.
The rapid review found that the funding arrangements for residential care were complex to administer and difficult to navigate.
In response to the recommendations, DSS engaged with providers to inform the development of the Community Group Home Pricing Model.
The new model will improve consistency and fairness and enable stronger fiscal sustainability. It will also reduce the administrative burden on providers, NASCs and Enabling Good Lives sites by simplifying how funding is organised.
In 2025 DSS worked with providers, NASCs and Enabling Good Lives sites to support them to transition to this new model.
Our top priority, throughout the transition was to ensure that disabled people in residential care continued to get the services and supports they need.
Find out more about the development of the new pricing model and contracting approach here.
On 1 December 2025, the new contracts and system changes to administer the residential pricing model under the new agreement came into effect.
Find information out more here.