The government is now operating in accordance with the Guidance on Caretaker Conventions, pending the outcome of the 2025 federal election.

What we’re doing

Better and fairer wages for aged care workers

Aged care workers are fundamental to delivering the care all Australians expect for older people. An award wage rise recognises the value of aged care workers and the complex work they do.

Workers to benefit

We are supporting the Fair Work Commission’s decisions on the Aged Care Work Value Case.

The Fair Work Commission has made its final decision, and the Aged Care Work Value Case is now completed.

As a result of the Fair Work Commission’s decisions under this Case, approximately 400,000 aged care workers have benefited from increases to their award wages.

Under its most recent decision:

  • Many registered and enrolled nurses working in aged care are receiving award wage increases from 1 March 2025, with further increases on 1 October 2025 and 1 August 2026.
  • These award wage increases apply to registered and enrolled nurses in aged care on the Nurses Award 2020.

These increases build on the previous:

  • award wage increases provided to many aged care workers from 1 January 2025 (Stage 3) 
  • 15% award wage increase provided to direct care workers in 2023 (Stage 2)

We are supporting the award wage increases, including on-costs and the increased cost of historical leave liabilities.

Funding

Aged care providers will receive additional funding to support the aged care nurses award wage increases through existing funding arrangements and new grant opportunities.

Residential aged careAustralian National Aged Care Classification (AN-ACC) funding modelAN-ACC price increase 
24/7 registered nurse supplement Supplement increase 
In-home aged care Home Care Packages ProgramSubsidy increase 
Commonwealth Home Support ProgrammeIndexation of Nursing services  via a Notice of Change to CHSP provider grant agreements
Specialist aged care programs National Aboriginal and Torres Strait Islander Flexible Aged Care ProgramIncreased funding through existing grant agreements 
Multi-Purpose Services (MPS) program 3 x in scope MPS facilities (non-state government run) will receive an increase to the daily subsidy per effective place through existing agreements 
Short-Term Restorative Care Programme Increase to the daily subsidy per client per occupied place 
Transition Care Programme Increase to the daily subsidy per client per occupied place 
Historical Leave Liabilities Grant opportunity 

Expected October 2025 
(covering 1 March 2025 and 1 October 2025 increases) 

Expected August 2026 
(covering 1 August 2026 increase) 

Privately funded facilities – such as independent living and retirement villages not funded by the Australian Government – will not be eligible to receive funding to meet the Fair Work Commission's decisions on award wage increase.

Apply  for Aged Care Wages – Stage 3 Historical Leave Liabilities (Tranche 1) Grant Opportunity – closing 2pm (AEDT) 6 March

This grant will help aged care providers cover some of the increased value of historical leave liabilities for workers affected by the Fair Work Commission’s Stage 3 decision in the Aged Care Work Value Case.

The grant will help supplement 1 January 2025 award wage increases to leave entitlements with:

  • 25% for approved residential aged care providers
  • 50% for Home Care Packages, Commonwealth Home Support Programme, Transition Care Programme, Short-Term Restorative Care Programme and the National Aboriginal and Torres Strait Islander Flexible Aged Care providers.

Multi-Purpose Services providers will receive their leave liabilities funding through existing funding agreements and are not eligible for this grant.

Providers will need to apply online via GrantConnect before 2pm (AEDT) 6 March 2025.

If you have further questions, email Grant.ATM@health.gov.au and quote GO7428.

Details on a further Historical Leave Liabilities grant opportunity related to the registered and enrolled nurses award wage increases commencing on 1 March 2025 will be provided in the near future.

Aged care nurses wages guidance

A guidance document is available to support aged care workers, union representatives and providers as funding arrangements for the 1 March 2025 registered and enrolled nurse award wage increases of the Aged Care Work Value Case roll out. 

Providers of residential aged care and Home Care Packages can still access the guidance documents to help them understand the additional funding for the Stage 2 and Stage 3 decisions.

Provider reporting

Resources

Contact

Fair Work Ombudsman

For advice and assistance on the awards and enterprise agreements, workers and employers may contact the Fair Work Ombudsman either by calling 13 13 94 between 8am – 5:30pm Monday to Friday (AEST), or by sending an online enquiry. Information on the award rates, including pay guides and a pay and conditions tool, can be found on the Fair Work Ombudsman’s website.

Department of Health and Aged Care

Providers can contact us for enquiries about the how the Government is funding the aged care award wage increases for workers at AgedCareWages@health.gov.au

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