New year, new era for aged care

January 2025 is an historic time for aged care workers, who receive the award wage increases they deserve, says the minister of one of several changes now in place.

The new year came with good news for aged care workers and providers alike with the arrival of improved pay, conditions and opportunities through the government’s latest investment into the sector.

The government solidified its pledge to once-in-a-generation aged care reforms and reiterated the changes that commenced from 1 January 2025.

Minister for Aged Care Anika Wells said in a statement that the government’s funding supports around 340,000 aged care residential and home care workers to be paid fairly and valued for the important work they do and that going forward, aged care workers will receive the award wage increases they deserve.

Anika Wells. (Image supplied)

“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,” Ms Wells said.

“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.”

Ms Wells added that the government’s $37 million investment in CHSP meals will help providers to continue delivering an essential service this year – bringing healthy meals to older Australians to help them stay healthy and connected to their community.

January 1 2025 changes

Valuing the aged care workforce includes:

  • 340,000 aged care workers in residential and home care will receive an increase in their award wages, with a further increase commencing from 1 October 2025
  • the aged care sector will have access to funding to pass on this award wage increase with the government’s $3.8 billion investment over four years. This is on top of the $11.3 billion commitment in 2023 to fund the previous 15% award wage increase.

Supporting improved career pathways for nurses in aged care and increasing the supply of skilled and nurses in aged care includes:

  • $18.4 million in the Aged Care Nursing Clinical Placements program that will support up to 8,000 nursing students experience firsthand the rewards of caring for older people in aged care
  • $10.3 million to support nurses from the start of their careers through the Aged Care Transition to Practice Program.

Support for Australians to age at home or in residential care includes:

  • Commonwealth Home Support Program meals providers will receive a 10% cost-of-living top-up of their meals funding to alleviate cost pressures and reduce impact on service delivery
  • The government has committed $157.8 million in continued Covid-19 support for residential aged care providers to assist with the management of Covid-19 outbreaks in 2025.

“Our investment is focused on delivering the largest improvement to aged care in 30 years, building and strengthening the aged care workforce with better and fair wages, and improving aged care for over 500,000 older people seeking aged care every year,” Ms Wells said.

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Tags: aged care, anika wells, funding, government, policy, wages, workforce,

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