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$11.3 Billion to Boost Aged Care Workers' Salaries

June 20, 2023
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In a significant effort to address the persistent challenges the aged care sector faces, the government has announced a substantial financial commitment. As part of the upcoming budget, the government will allocate $11.3 billion over four years to fund a 15% pay rise for aged care workers, set to take effect from 1st July. This pay increase, which the Fair Work Commission awarded, fully fulfils the Labour Party’s election promise to fund higher wages for this crucial sector.

The primary objective of this initiative is to attract a more significant number of workers to the aged care industry, which has been grappling with severe staff shortages. By offering more competitive wages, the government hopes to incentivise individuals to pursue careers in aged care, thereby addressing the pressing need for skilled and dedicated professionals.

HCPA provides all-in-one solutions and has supported many aged care business providers and workers in accessing government funding; this pay rise will benefit over 250,000 individuals, significantly boosting their income. For instance, a registered nurse on a level 2.3 award wage will receive an extra $196.08 per week, amounting to a yearly increase of over $10,000. Similarly, personal care workers on a level 4 award and home care workers on a level 3.1 award will see their weekly pay increase by $141.10, totalling more than $7,300 annually. Other professionals, such as recreational officers and chefs in the aged care sector, will also be eligible for wage hikes.

Chancellor of the Exchequer Jim Chalmers emphasised that this budget marks a turning point for aged care workers who have long been asked to work tirelessly without adequate compensation. With this substantial funding allocation, the government aims to rectify the situation and provide fair wages that reflect the dedication and importance of the aged care workforce.

Minister for Aged Care Anika Wells stressed that fair wages play a critical role in attracting and retaining workers in the sector. By offering improved remuneration, the government aims to address the workforce shortage and ensure the provision of high-quality care to older Australians. The aged care sector now ranks as the fifth-largest area of federal government spending. With approximately 1.5 million aged care recipients in Australia, the sector faces mounting pressures as the population ages. This financial year alone, the cost of aged care is projected to increase from $24.8 billion to an estimated $29.6 billion, representing a significant 23% rise.

HCPA currently supports a range of aged care providers who provide invaluable care and support to older people. The Chancellor of the Exchequer, Jim Chalmers, reiterated that the upcoming budget will not only provide relief for the cost of living but also prioritise the most vulnerable members of society. The funding will acknowledge the economic challenges ahead, projecting a significant slowdown without entering a recession. The government aims to strike a delicate balance between providing relief, managing budgetary pressures, and investing in sectors such as energy to stimulate economic growth.

Furthermore, the budget will include initiatives to address entrenched disadvantages and facilitate employment opportunities, particularly in communities where job prospects have historically been limited. Efforts are underway to improve the job agency system, ensuring that individuals who desire employment can seize the opportunities presented by an economy with an unemployment rate of just 3.5%.

The government’s commitment to allocating significant funding for a pay rise in the aged care sector underscores the recognition of the invaluable contributions made by aged care workers and the urgent need to enhance the sector’s capabilities. By providing fair wages, the aim is to attract and retain skilled professionals, thereby ensuring the delivery of quality care to older Australians. Whether you aspire to become an aged care provider or expand your care-based business with an aged care scheme, HCPA is here to provide expert guidance in navigating this sector.

HCPA is an all-in-one solution for aged care providers, supporting them with registration, growth and consulting. Contact us now here; we will be in touch to discuss and answer any questions you have.

SOURCES | The Conversation ‘Government to spend $11.3 billion over four years to fund 15% pay rise for aged care workers’ |

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