$2.6 BILLION BOOST FOR AGED CARE NURSES: BRINGING TOTAL LABOR GOVERNMENT INVESTMENT TO $17.7 BILLION

05 March 2025

ALISON BYRNES MP
FEDERAL MEMBER FOR CUNNINGHAM

 

The Albanese Labor Government has announced an additional $2.6 billion investment to deliver further pay rises for 60,000 aged care nurses across Australia. This latest funding commitment brings the government’s total investment in support of award wage increases for aged care workers to $17.7 billion.

This funding will enable aged care providers to implement the Fair Work Commission’s Aged Care Work Value Case decision, which mandates significant wage increases for registered and enrolled nurses who care for older Australians.

As a result, registered and enrolled nurses will receive an average award wage increase of approximately 12 per cent, provided in three equal instalments on 1 March 2025, 1 October 2025, and 1 August 2026.

Since 2022, a registered nurse at level 2, pay point 3 has seen their award wage rate increase by around $430 per week, totalling an annual increase of more than $22,000. Similarly, an enrolled nurse at pay point 2 has experienced an increase of approximately $370 per week, amounting to over $19,000 per year. These wage increases are a direct response to the need for fair compensation and improved retention and recruitment in the aged care sector.

In addition to the increases for nurses, other aged care workers, including assistants in nursing, personal care workers, home care workers, and recreational activities officers, will also benefit. Wage increases for these roles commenced on 1 January 2025, with a second phase for some workers on 1 October 2025. Ancillary staff, such as administration personnel, drivers, maintenance staff, gardeners, laundry hands, cleaners, and food services assistants, are also included in these adjustments under the Aged Care Award 2010 and the Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award).

This latest funding builds on the 15 per cent award wage increase provided in 2023 for registered and enrolled nurses, assistants in nursing, personal care workers, home care workers, head chefs, cooks, and recreational activities officers. The government has confirmed it will support the increased award wages, including on-costs and the financial impact of historical leave liabilities.

Aged care workers seeking advice on the new award rates and enterprise agreements can contact the Fair Work Ombudsman by calling 13 13 94 between 8 AM – 5:30 PM (AEST) from Monday to Friday, or by visiting the Fair Work Ombudsman’s website for resources, including pay guides and a pay and conditions tool.

Quotes attributable to Federal Member for Cunningham, Alison Byrnes MP:

“The Albanese Labor Government is committed to ensuring aged care workers and nurses are fairly rewarded for their skills and dedication. These increases are already having a positive impact on retention and recruitment in the sector and are helping to relieve cost of living pressures for local workers.

“These pay rises reflect our Labor Government’s commitment to valuing the work of aged care professionals and ensuring a higher standard of care for older Australians.

"This investment not only guarantees fair compensation for aged care nurses but also strengthens the workforce, which is crucial for delivering quality care to our parents and grandparents here in the Illawarra.