Regis Healthcare (ASX:REG) said the Australian Government's 2.55% increase in the Australian National Aged Care Classification starting price to AU$303.19 from AU$295.64 per resident per day from Oct. 1 falls well short of sector cost inflation, according to a Thursday filing with the Australian bourse.

The hotelling supplement will remain unchanged at AU$22.15 per resident per day, with care-minute requirements and funding categories also staying the same, per the filing.

The company highlighted escalating labor costs, including the 4.75% annual wage review increase, further aged-care wage rises and 3.8% consumer price index growth, while expressing disappointment that government funding does not adequately reflect the underlying cost of care, the filing said.

The company said it will continue measures such as increasing room rates and everyday living service fees, optimizing revenue, and improving operational efficiency to mitigate margin pressure, the filing added.