Historic wage boost for 340,000 aged care workers in 2025
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The Albanese Government has ushered in the new year with significant reforms and investments aimed at transforming Australia’s aged care system. As of 1 January, aged care workers, providers and older Australians stand to benefit from increased funding, better wages and enhanced care standards.
Starting 1 January, over 340,000 aged care workers in residential and home care will see a significant increase in their award wages. This marks a major step in addressing long-standing inequities in the sector.
“Today is a historic day for aged care workers, who will receive the award wage increases they deserve,” said Minister for Aged Care, Anika Wells. “The Albanese Government funding supports around 340,000 aged care residential and home care workers to be paid fairly and valued for the important work they do.”
The government’s $3.8 billion investment over four years will ensure the wage increases are passed on to workers. This builds on an $11.3 billion commitment in 2023 that funded a 15% wage increase.
Strengthening the Workforce
In addition to wage increases, the government is focusing on career development and workforce expansion. Programs like the $18.4 million Aged Care Nursing Clinical Placements initiative aim to provide hands-on experience for 8,000 nursing students, while $10.3 million will fund the Aged Care Transition to Practice Program to support 2,125 new nurses.
“Our investment is focused on building and strengthening the aged care workforce with better and fair wages,” said Minister Wells.
Support for Older Australians
The reforms also include measures to help older Australians age comfortably at home or in residential care. Commonwealth Home Support Programme (CHSP) meals providers will receive a 10% cost-of-living top-up, increasing funding by $37 million over three years.
Additionally, $157.8 million in continued COVID-19 support will help aged care facilities manage outbreaks, staffing shortages, and vaccination efforts.
Minister Wells described the reforms as the most significant in 30 years. “Our investment is focused on delivering the largest improvement to aged care in three decades and improving aged care for over 500,000 older people seeking care every year.”
Ritchelle is a Content Producer for Healthcare Channel, Australia’s premier resource of information for healthcare.
