About the annual wage review
From 1 December 2023, we are investing $2.2 billion (over 4 years from 2023–24) in residential aged care to fund the 2023 Fair Work Commission (FWC) Annual Wage Review (AWR) decision for a 5.75% award wage increase, which took effect on 1 July 2023.
This funding includes:
- $2.1 billion in Australian National Aged Care Classification (AN-ACC) funding, paid through an increase in the AN-ACC price from $243.10 to $253.82
- a 3% increase in the 24/7 registered nurse supplement of $21.5 million.
This funding will help providers attract and retain a high-quality workforce to meet their 24/7 registered nurse and care minutes responsibilities.
IHACPA pricing recommendation
In July 2023, the Independent Health and Aged Care Pricing Authority (IHACPA) recommended the AN-ACC price increase from $243.10 to $249.34 to fund the FWC AWR decision.
The new AN-ACC price of $253.82 provides the same annual funding as would have occurred had the IHACPA recommendation been implemented from 1 July 2023. The higher rate reflects back pay for the 1 July to 30 November 2023 period.
Annual AN-ACC price adjustments
We will announce the AN-ACC price in August 2024. This price will come into effect on 1 October annually.
Moving the AN-ACC price adjustment from July to October will enable IHACPA to include the outcome of the FWC AWR decision in their annual price review. This streamlines the pricing process and gives providers more confidence that AN-ACC funding will meet their wage costs.
For more information on AN-ACC, see Australian National Aged Care Classification funding model.