The Albanese Government will invest a further $3.8 billion into aged care wages over the next four years, building on its $11.3bn commitment in 2023, and on top of the $5.6bn announced by the Prime Minister last week.
Around 340,000 aged care workers in residential and home care will see these increases from 1 January 2025, with many workers receiving further increases from 1 October 2025.
Minister for Aged Care, Anika Wells, said through this additional funding, the government is supporting a sustainable sector delivering high-quality care that older people can access when and where they need it.
“We are funding the Fair Work Commission’s Aged Care Work Value Case Stage 3 decision, which will see award wage increases for many workers in aged care. This will in turn support recruitment and retention of aged care workers, and the delivery of well-staffed and consistent high-quality care for older people in Australia.
“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,” said Ms Wells.
Historic aged care reforms
A new aged care act introduced into Parliament last week, in response to the final report of the Aged Care Taskforce, outlined a number of essential changes to improve the funding, viability, and quality of residential care.
Under the proposal, new entrants to the system with means will pay more towards everyday living and independence support in home care known as ‘hotelling services’ – which includes meals, showering and gardening – and non-clinical care and accommodation in residential aged care. Existing aged care recipients will not pay more than they are under a no-worse-off measure.
From 1 October 2024, the Australian National Aged Care Classification (AN-ACC) price will be increased to $280.01, which funds the FWC stage 3 increase as well as other cost increases. This represents a 13 per cent increase in average daily funding and will also enable providers to meet the increase to 215 care minutes that will also come into effect.
From 20 September 2024, the hotelling supplement will also increase from $11.24 to $12.55 per resident per day. This includes $1.09 to fund the FWC stage 3 increase. There will be a further increase of $1.89 on 1 July 2025 to fund higher hotelling costs as announced last week.
For the Home Care Packages (HCP) Program, the Government has flagged $0.4 billion over four years to increase the Commonwealth portion of the home care subsidy.
Commonwealth Home Support Programme (CHSP) providers will be able to apply for a Grant Opportunity for additional funds. This will ensure that CHSP providers are supported in providing the wage increases to eligible staff.
Ms Wells said: “Through more funding for aged care homes, better wages for staff, and improved care for residents, the Albanese government is continuing to invest in a safer, more equitable aged care system.”
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