Award wage increase for workers
From 1 January 2025, award wages will increase for many aged care workers, as a result of the Fair Work Commission’s Aged Care Work Value Case Stage 3 decision.
Many workers will get further increases from 1 October 2025.
The Home Care Package subsidy will also rise on these dates, to support the increased award wages.
Subsidy increase
The subsidy will increase by:
- 0.93% from 1 January 2025
- 0.44% from 1 October 2025, subject to the passage of the new Aged Care Act and the Support at Home program that will replace the Home Care Packages Program on 1 July 2025.
This table outlines the current daily Home Care Package subsidy rate and the rate from 1 January 2025.
Package level | Daily rate from *1 July 2024 | Daily rate from 1 January 2025 |
|---|---|---|
Level 1 | $29.01 | $29.28 |
Level 2 | $51.02 | $51.49 |
Level 3 | $111.04 | $112.07 |
Level 4 | $168.33 | $169.90 |
|
What providers need to do
You must pay staff at least the new award wage rates from 1 January 2025.
If you need to increase charges for care and services delivered by workers receiving increased 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
- update Home Care Agreements
- update pricing schedules
- publish prices on My Aged Care.
Providers must set reasonable and justifiable prices for care and services.
See more information on setting, publishing or charging prices.
What care recipients need to do
Care recipients will 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 who will get an increase in award wages.
Providers must discuss these changes to prices with care recipients and ask for agreement. A provider cannot change a care recipient’s Home Care Agreement and increase prices without their consent.
We sent a letter to all care recipients to advise them of the increase to the Home Care Package subsidy.
More information
For more information, please refer to:
- Aged care wage rise (Stage 3) – care recipient fact sheet
- Aged care wage rise (Stage 3) – provider fact sheet
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
- Review the 2022 SCHADS award fact sheet.
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