The Fair Work Commission award wage increase for aged care workers and registered and enrolled nurses in aged care
The Australian Government is supporting the Fair Work Commission’s decisions in the Aged Care Work Value Case for an increase to award wages for aged care workers and registered and enrolled nurses working in the aged care sector.
To support providers to pass on the award wage increase, the government will increase the Home Care Packages subsidy by 0.5% from 1 October 2025.
On 1 November 2025, the Home Care Packages Program will transition to the new Support at Home program. The government will continue to support the award wage increases for aged care nurses under Support at Home, with the final increase set for 1 August 2026.
Read more about better and fairer wages for aged care workers.
Subsidy increase
The subsidy will increase by:
- 0.5% from 1 October 2025.
This table outlines the current daily Home Care Package subsidy rate and the rate to apply from 1 March 2025.
| Package level | Daily rate from 1 January 2025 | Daily rate from 1 March 2025 |
|---|---|---|
| Level 1 | $29.95 | $30.10 |
| Level 2 | $52.67 | $52.93 |
| Level 3 | $114.65 | $115.22 |
| Level 4 | $173.81 | $174.68 |
What providers need to do
You must pay your employees at least the new award wage rates from 1 October 2025.
Some providers already pay their employees above award wages so further pricing reviews and Home Care Agreement updates may not be required by all providers.
However, if you need to increase charges for care and services to support the changes to award wages, you must:
- discuss the changes with care recipients, including:
- what prices are changing
- why the prices need to change
- what those prices include
- when the new prices will start
- renegotiate prices with care recipients and gain their consent
- update Home Care Agreements or service agreements
- update pricing schedules
- publish prices on My Aged Care.
Providers must set reasonable and justifiable prices for care and services.
For more information, please refer to the Aged Care Work Value Case – Provider fact sheet.
See more information on setting, publishing or charging & prices.
What care recipients need to do
Care recipients should see no change in their services or hours of care.
Providers may need to increase how much they charge for the care and services delivered by their workers and nurses who will get an increase in award wages.
Providers are responsible for discussing pricing increases with care recipients and gain their consent to update or vary the Home Care Agreement or service agreement. A provider cannot change a Home Care Agreement or service agreement and increase prices without the older person’s consent.
You can also provide your care recipients with the Aged Care Work Value Case – Nurses Decision Care recipient fact sheet.
Resources
- Aged Care Work Value Case – Nurses Decision Provider fact sheet
- Aged Care Work Value Case – Nurses Decision Care recipient fact sheet
More information
For assistance navigating these changes, see:
- Home Care services – your business rights and obligation ACCC
- Aged Care Act 1997
- User Rights Principles 2014
- Fair Work Commission
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