The Albanese Government is committing $3.8 billion over four years to support pay increases for aged care workers, beginning on 1 January 2025. This investment follows the Fair Work Commission’s Aged Care Work Value Case Stage 3 decision and will benefit 340,000 workers in residential and home care.
The funding builds on a previous $11.3 billion allocation in 2023 for a 15% wage rise and an additional $5.6 billion announced recently. The government will also increase care funding and hotelling supplements to support providers in delivering improved care services.
In a release, Aged Care Minister Anika Wells shared, “These award wage increases apply to workers who provide more direct support and care to older people – personal care workers, assistants in nursing, recreational activities officers and home care workers.
They also apply to those workers whose roles support the running and functioning of residential care services – administration staff, drivers, maintenance staff and gardeners, laundry hands, cleaners and food services assistants,” she added.
Further changes to the funding structure are set for implementation in 2025 to ensure better alignment with costs, particularly for regional providers.
From 1 October 2024, the Australian National Aged Care Classification (AN-ACC) price will rise to $280.01 per day, which will fund wage increases and additional care minutes.
Hotelling supplements will also increase, ensuring that living costs for residents are covered. Home care programs and Commonwealth Home Support Programme (CHSP) providers will receive additional funding to meet wage increase obligations without impacting care services or hours.
