PETER FEGAN, 4BC: The pre-election promises continue and so does the spending. The Albanese Government is investing a further $2.6 billion to deliver another pay rise for 60,000 aged care nurses across Australia. This brings the Government's total investment in support of award wage increases for aged care workers to around $17 billion. Registered and enrolled nurses will see their award wage increase by an average of 12 per cent as a result of this decision. These increases will be provided across three largely equal instalments on 1 March, 1 October and 1 August 2026, and they- similar to the instalments that they've already received. Since 2022, a registered nurse who was on a Level 2 Pay Point 3 will have their award wage rate increase of around $430 a week- that's an increase of 22 grand a year. And enrolled nurses who are on Pay Point 2 will have an award wage increase of around 370 bucks, so it's pretty good. That's an increase of around 19 grand a year.
Joining me on the line is the Federal Aged Care Minister, Anika Wells. Minister, a very good morning to you.
ANIKA WELLS, MINISTER FOR AGED CARE AND MINISTER FOR SPORT: Good morning, Peter.
FEGAN: Now, these instalments, how do they work? Are they very similar to what you've already done?
WELLS: Yeah, that's right. This is now the third year of us delivering the fair work awarded pay rises for aged care workers. So these people have already received a pay rise. This is in addition to what they've previously received, and we've now got our systems in place about how we deliver that to either their provider or their block grant funder.
FEGAN: So make no mistake, Minister, I think this is fantastic for nurses, right? I won't dispute that, but the reality is here we have a shortage of nurses in this country. Now, I read a research paper yesterday I found very, very interesting, that suggests by around 2032 we'll have an undersupply of nurses to the tune of 70,000. How do we- what incentive is there for somebody to become a nurse – not for those that are already nurses- that are existing nurses?
WELLS: Well, you're right. And one of the things that's impacted our ability to secure nurses is what other governments try to do, either in Australia, like the Victorian Government had some incentives for nursing students or across the world, because we are in a global race for nurses. But it was probably the biggest problem I faced when I came to the role as Aged Care Minister, the shortages in workforce. And when we came to government about three years ago, the registered nurse workforce gap was about 13,000 nurses, and now it's just under 1500 nurses. And that's directly attributable to these pay rises, to people coming back to the workforce when maybe they've left it or being enticed back because they genuinely believe that aged care is getting better.
FEGAN: So the average shortfall was 13,000. You say it's down to 1500.
WELLS: That's right. The registered nurse workforce gap was 13,000 in Australia when we came to government. It's now down to 1500. We're closing the gap.
FEGAN: Okay. So, will there still be 70,000 short by 2032? If your modelling suggests that, then we'll be fulfilled by 2032.
WELLS: Well, I think we're speaking to two different sets of modelling, aren't we, Feegs?
FEGAN: Okay.
WELLS: And I'll go with the one that the Department of Health and Aged Care uses, because that's how we plan. My point is that this is a big problem. I agree with you, but we are actually doing substantive things to address it. And the more nurses we can encourage back into aged care, the better care everybody will be able to rely upon when they need it.
FEGAN: In September of last year, under MYEFO, the Government announced $3.8 billion fund to aged care nurses. So this $2.6 billion just to clear up, Minister, this is new money. This isn't an old announcement with a shiny new layer on it, is it?
WELLS: No, this is the MYEFO money. I knew you were going to ask me about where this money was coming from. It's been a regular discussion point between you and I. This is money that was provisioned in the MYEFO Outlook, and there's sort of a rounding figure that we're looking after now. And I would say this is really important. We are awarding the pay rise with nurses today, but this isn't a surprise. This isn't new. Upon coming to government, on campaigning to be elected to government, we said there was a wage case live in Fair Work and we will fund that outcome. And this is another step along that journey, three years in, and that- the outcome of that case has now been more than $17 billion worth of pay rises for aged care workers, including today's nurses.
FEGAN: [Talks over] Okay, so it's another 2.6 billion. It’s another $2.6 on top of that $3.8.
WELLS: That's right- no …
FEGAN: [Talks over] Yeah.
WELLS: … sorry, it's $2.6 billion. And it was vastly provisioned for in the MYEFO. And that is, when you think of it, $17.7 billion worth of value, effort and work that Australians were putting in to their jobs in aged care that they weren't getting paid for …
FEGAN: Okay.
WELLS: … And we are restoring that, and we're restoring that as quickly as we can.
FEGAN: Okay, but I'm still confused – the $3.8 billion from last year, where has that gone?
WELLS: Well, I think that speaks to some of the pay rises that we've previously awarded that we'd previously given to aged care workers because obviously aged care workers they're not just nurses, they're personal care workers, members of the lifestyle team, people that work in the kitchens, the chefs …
FEGAN: Okay, so that's where that money's gone, because you seem to think- have we lost it? Like, 3.8 billion, surely we know where it's gone.
WELLS: I'm genuinely confused as to how your calculator is working there.
FEGAN: Okay. All right, I just- I saw an announcement last year. I did the research and I saw an announcement last year in September by yourself. It was a $3.8 billion for aged care nurses- a $3.8 billion fund for aged care nurses.
WELLS: Not for nurses, for personal care workers.
FEGAN: Okay.
WELLS: The vast majority of people who look after people in residential aged care or in home care. That's your PCs. You know, they've got a Cert IV. They do things like showering or feeding. Nurses, who we’re talking about today who are receiving a $2.6 billion pay rise, they're the ones who are administering medications, they're cauterising wounds, they're deciding whether or not people need a GP or to go to hospital. They're all part of our amazing aged care workforce, but they do different roles.
FEGAN: Yeah, it's not an easy role. And I wasn't trying to catch you out. I was just asking the question. I mean, taxpayers will probably want to know where $3.8 billion has gone. You've cleared it up.
WELLS: That you've found it because you're looking at it through its transparency mechanisms, because we make it available through the MYEFO.
FEGAN: Yeah, exactly. That's where I found- I mean, I was only asking the question. Before I do let you go, though, and I know that you're very active in your community. We've had plenty of phone calls from people in Zillmere, Sandgate, Geebung and those areas saying there's no sandbags available.
WELLS: I know people want us all to work together in a crisis, and I'm working very closely with Councillor Jared Cassidy and Bisma Asif who are my local and state counterparts in that area. But it does look like council has been caught short in this. I think one of the lessons out of the 2022 floods was that we should have 150,000 sandbags ready in the city at any time where they need to be deployed, and they were not ready. They were not ready. So yesterday I think about 75,000 sandbags were given out. People have been queuing all night. I know at Zillmere a labour hire crew came in at nightfall and worked across the night so that there was 24/7 production. But I also know locals have told me that they have sort of been to collect them overnight. And when people came at sunrise this morning, they weren't there. And there are now big queues. So for people who are looking, there's a car park temporary set up at Boondall Entertainment Centre.
FEGAN: Boondall. Okay, perfect.
WELLS: You do need to bring your own shovel and zip ties …
FEGAN: Okay.
WELLS: I've had photo evidence that that's up and running there this morning.
FEGAN: Okay, good on you.
WELLS: … obviously, we'll continue production and I will keep on my social platform a running update for people.
FEGAN: Good on you, Minister. Really appreciate your time this morning. Thanks so much.
WELLS: You're welcome.
FEGAN: There she is, Anika Wells.