Government Commits $11.3 Billion To Fund Aged Care Workers Pay Rise

As part of Federal Budget

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The Federal Government will dedicate a whopping $11.3 billion in next week’s budget to fund a 15 per cent pay rise for aged cared workers.

The investment will align aged care workers’ pay with the Fair Work Commission’s order and will be implemented from June 30.

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Ministers hope the commitment will attract thousands more staff to the sector and help meet the government’s election promise of having nurses on duty 24/7 across all aged care facilities.

“Fair wages play a major role in attracting and retaining workers to provide around-the-clock care for some of Australia’s most vulnerable people,” Aged Care Minister Anika Wells said.

“This wage decision will help more women and families to make ends meet, and ensure that quality aged care workers are less likely to contemplate leaving the sector because of pay concerns.”

It’s hoped at least 8,000 new or returning aged care workers will be attracted to the industry with the announcement of the pay rise.

Ms Wells said about five per cent of homes won’t be able to meet the government’s target of having a nurse on duty 24/7 in all aged care homes by July 1. 

The investment will fund the 15 per cent pay rise over the next four years, while the government will also establish a new daily “hotelling supplement” of $10.80 a resident to cover pay rises for facilities chefs and cooks.

In November the Fair Work Commission declared an interim decision to increase aged care workers pay, acknowledging the sector “has been historically undervalued” for gender-based reasons.

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Tricia Mifsud

4 May 2023

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Tricia Mifsud

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