Three types of indexation may apply to Commonwealth Home Support Program (CHSP) providers.
Annual Indexation
2025–27 CHSP grant agreements will have annual indexation applied.
2.3% has been applied from 2025–26.
The rate of indexation for 2026–27 is yet to be determined by the Department of Finance.
Indexation for 2026–27 will be applied through a Notice of Change to the grant agreement.
Fair Work Commission – aged care nurses
In line with the Australian Government’s decision to support the Fair Work Commission’s 6 December 2024 decision, for further increases to award wages for aged care nurses, CHSP providers funded for Nursing received an indexation boost from 1 March 2025 via a Notice of Change to their existing grant agreements. This has been automatically calculated into monthly payments for Nursing services in the 2025–27 agreements.
CHSP providers funded in 2025–27 for Nursing services will receive a Notice of Change to their grant agreement applying a further indexation boost with effect from 1 October 2025. The department is working towards inclusion from the 31 October 2025 CHSP payment.
A further notice of change in 2026 will apply an indexation boost with effect from 1 August 2026.
Fair Work Commission – other aged care workers
As part of the 2025–26 Budget, the Australian Government has announced funding of $30.1 million to support award wage increases for aged care workers to CHSP providers. This relates to the Fair Work Commission’s Stage 3 decision under the Aged Care Work Value Case and those aged care workers whose award wages increased from 1 January 2025.
The department issued a letter to providers regarding indexation on 26 March 2025.
Funding will be provided through an indexation boost to support both the 1 January 2025 and the 1 October 2025 award wage increases. This is consistent with funding provided across other aged care programs.
- Some providers have already been awarded the full amount of the 1 January 2025 indexation boost under Grant Opportunity GO7358 – Fair Work Commission Stage 3 (Tranche 1) from 1 January 2025 into their CHSP Base.
- The indexation boost will not apply to funding to support award wage increases for aged care nurses, as this funding is already being provided through the separate indexation boosts detailed above.
We are working towards inclusion from the 30 November 2025 CHSP payment.