Govt allocates $2B to boost aged care wages and support providers

In a significant move to prioritise the welfare of aged care staff, the Albanese Government has announced a substantial investment, allocating $2.194 billion to raise the Australian National Aged Care Classification (AN-ACC) price to $253.82, effective from today, December 1, 2023.

The new price represents a 4.4% increase on the previous AN-ACC price of $243.10.

The commitment is specifically directed to aid residential aged care providers in implementing the Fair Work Commission’s Annual Wage Review decision. This decision mandates a 5.75% increase in the award wage for aged care staff. The allocated funds cover back pay for the period from July 1 to November 30, ensuring that aged care facilities are adequately financed to meet the enhanced award wages for various roles, including registered nurses, enrolled nurses, assistants in nursing, personal care workers, and recreational activities officers (lifestyle workers).

As part of the broader support for the wage rise, an additional $21.5 million has been pledged for 24/7 Registered Nurse (RN) supplement funding, also set to commence today.

Looking ahead to 2024, the Albanese Government aims to introduce a more predictable system by announcing the annual price for AN-ACC in August, with the adjustment taking effect on October 1. This initiative is designed to provide residential aged care providers with increased certainty regarding the government funding they will receive each year.

In a statement, Minister for Aged Care, Anika Wells, expressed the government’s unwavering commitment to the aged care sector, emphasising the $2 billion investment as a testament to prioritising the welfare of the care workforce.

“This money is in addition to the $11.3 billion to fund the biggest ever wage increase for aged care workers of 15 per cent”

Aged Care Minister Anika Wells


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