Aged care pay scrutiny widens across five states

The Fair Work Ombudsman (FWO) is intensifying its efforts to ensure Australia’s aged care workforce receives correct pay and entitlements, with investigations underway at 27 facilities across five states. The move is part of a broader crackdown to protect vulnerable and migrant workers, whose risk of being underpaid or exploited remains high.

According to Fair Work Ombudsman Anna Booth, the regulator’s recent site visits have already targeted 20 diverse aged care providers in Victoria, New South Wales, South Australia, Queensland and Western Australia. These inspections—spanning residential aged care, home care and digital platforms—are focusing on wages, record-keeping and other workplace requirements related to personal care workers, nurses and nursing assistants.

“The aged care sector employs a high number of vulnerable workers, particularly migrant workers, who are at risk of exploitation, and these inspections are making sure their workplace rights are being met,” Booth said.

The FWO’s ongoing campaign follows a substantial recovery effort in 2023–24, which saw over $40.5 million returned to more than 22,000 underpaid residential aged care employees. Anonymous reports indicate that common underpayments stem from issues like unpaid overtime, penalty rates, and allowances.

“Hard-working aged care workers must be paid all that they are owed under their awards, agreements and the Fair Work Act’s National Employment Standards,” Booth said.

“If we find breaches, our first aim is to ensure that workers are fully and promptly back-paid. If we find employers with significant compliance issues we’ll consider our enforcement tools as appropriate.”

With the industry facing new classification and minimum pay rate changes in 2025, the FWO is urging employers to stay informed. The agency’s resources, such as the online Pay and Conditions Tool, aim to help aged care organisations avoid errors when calculating staff entitlements.

“We want employers to get it right in the first place. The Fair Work Ombudsman supports employers and employees to identify correct pay and entitlements,” Booth said.

In a bid to tackle these challenges collectively, the FWO has formed an Aged Care Services Reference Group, teaming up with the peak employer body Ageing Australia and unions representing care workers.

“Improving compliance in this sector requires commitment from all stakeholders, and we look forward to working with Reference Group members,” Booth said.

Employees can make anonymous reports in multiple languages through the FWO website or by calling the Fair Work Infoline on 13 13 94. Union members can also contact their respective unions for advice, while employers are encouraged to seek guidance from fairwork.gov.au to ensure ongoing compliance.

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Ritchelle is a Content Producer for Healthcare Channel, Australia’s premier resource of information for healthcare.