January 1 continues the Albanese Government's major investment in aged care as we kick off 2025 with record support for workers and providers.
The measures beginning today confirm the Albanese Government's commitment to once-in-a-generation aged care reforms and invests in the aged care workforce to improve pay, conditions and opportunities.
From today, January 1:
Valuing the aged care workforce
- 340,000 aged care workers in residential and home care will receive an increase in their award wages, recognising their value and the important work they do. For some workers this is the first award increase, with a further increase commencing from 1 October 2025.
- The aged care sector will have access to funding to pass on this award wage increase with the government's $3.8 billion investment over four years. This is on top of the $11.3 billion commitment in 2023 to fund the previous 15% award wage increase.
We are continuing to support improved career pathways for nurses in aged care and investing in increasing the supply of skilled and dedicated nurses in aged care. This includes:
- $18.4 million in the Aged Care Nursing Clinical Placements program that will support up to 8,000 nursing students experience firsthand the rewards of caring for older people in aged care
- $10.3 million to continue supporting nurses from the start of their careers through the Aged Care Transition to Practice Program. This funding will support up to 2,125 nurses to build their skills and experience in their first aged care role.
Supporting Australians to age at home or in residential care
- From 1 January, all Commonwealth Home Support Programme (CHSP) meals providers will receive a 10% cost-of-living top-up of their meals funding to alleviate cost pressures and reduce impact on service delivery. This will increase funding to CHSP meals providers by $37 million over the next three years.
- The Government has committed $157.8 million in continued COVID-19 support for residential aged care providers to assist with the management of COVID-19 outbreaks in 2025. This includes the continuation of the Aged Care Outbreak Management Support Supplement, a surge workforce program to help aged care homes during critical staff shortages, and measures to address low vaccination rates in aged care homes.
Quotes attributable to Minister for Aged Care, Anika Wells:
"Today is a historic day for aged care workers, who will receive the award wage increases they deserve.
"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.
"These award wage increases apply to workers who provide more direct support and care to older people - personal care workers, assistants in nursing, recreational activities officers and home care workers.
"They also apply to those workers whose roles support the running and functioning of residential care services - administration staff, drivers, maintenance staff and gardeners, laundry hands, cleaners and food services assistants.
"While our $37 million investment in CHSP meals will help providers to continue delivering an essential service this year - bringing healthy meals to older Australians to help them stay healthy and connected to their community.
"Our investment is focused on delivering the largest improvement to aged care in 30 years, building and strengthening the aged care workforce with better and fair wages, and improving aged care for over 500,000 older people seeking aged care every year."
