Wage subsidy increase in the Home Care Packages Program

Wage increase for workers

We are funding the Fair Work Commission's decision on the Aged Care Work Value case. This means a 15% award wage increase for aged care workers on the:

• Aged Care Award 2010
• Nurses Award 2020
• Social, Community, Home Care and Disability Services Industry Award (SCHADS) 2010.

The changes will take effect from the start of the employee’s first full pay period that starts on or after 30 June 2023.

To pass on the wage rise the Government is increasing the Home Care Package basic subsidy and some supplements by 11.9% (including annual indexation). 

Find out more about home care subsidies and supplement rates applicable from 1 July 2023.

The department is sending a letter to all care recipients and their authorised representatives to notify them of this change.

Find out more about wage rises.

Provider requirements

The Government expects that all funding provided for the 15% wage increase, is passed on for the full benefit of workers. Where a provider has been paying their workers according to the award wage, they will now need to pay their workers in accordance with the new award rate from 30 June 2023.

Some workers may be paid above the award wage already. If this is not the full 15% above the award, they will need to receive additional pay to ensure their new pay rate reflects at least the new award rate.  

Some providers will need to adjust their pricing models. This may require reasonable increases in charges for care and services delivered by workers receiving the wage increase.

This will involve:

• discussing with care recipients how care and services delivered by some workers may need to change:
  – what prices are changing
  – why the prices need to change
  – what those prices include and
  – when the new prices will start
• renegotiating prices with care recipients
• updating home care agreements
• updating pricing schedules and
• publishing up to date prices on My Aged Care.

Providers must set reasonable and justifiable prices for care and services. Prices must be:

• value for money and reflect the resources it takes to provide the care or service
• clear, understandable and transparent
• in the best interests of care recipients
• in line with program requirements and legislation
• directly related to coordinating allowable care or services, or purchasing goods to meet the care recipient’s assessed needs and goals.

Changes cannot be made to home care agreements, care plans or individualised budgets without the consent of a care recipient. This includes any increase in prices. Care recipients are encouraged to agree to reasonable uplifts in prices. Not agreeing to reasonable prices could impact on a provider’s ability to provide safe and quality care.

A grant opportunity will be available to providers later this year to cover any additional costs for the small number of care recipients whose packages may be fully expensed each month on nursing and personal care.

Find out more about updating Home Care Agreements.

Example wage table

The table below outlines the current rate each worker receives and the new rate once the 15% increase is applied. This should help to determine what each worker is required to be paid.

Find out more about setting, publishing or charging prices.

More information

For more information, please refer to:

• Aged care workforce wage rise – Home care recipient fact sheet
• Aged care workforce wage rise – HCP provider fact sheet

For assistance navigating these changes, go to:

• Home Care Agreements for Home Care Packages
• Australian Competition & Consumer Commission - Home care services – your business rights and obligation
• Aged Care Act 1997
• User Rights Principles 2014
• Fair Work Commission - Aged Care Award Increase
• Review the 2022 SCHADS Award fact sheet