In the 2023-24 Budget, the Government boosted funding for residential aged care to back the Fair Work Commission’s decision on the Aged Care Work Value Case. This resulted in a 15% raise in award wages for aged care workers covered by the Aged Care Award 2010 and Nurses Award 2020.

The increased funding comprises:

1. Increase to the AN-ACC price

• An extra $10.1 billion in Australian National Aged Care Classification (AN-ACC) funding over the next 4 years. The increase to the AN-ACC price funded the 15% award wage increase (at 200 care minutes) for:
  • Registered Nurses (RNs)
  • Enrolled Nurses (ENs)
  • Personal Care Workers (PCWs)
  • Assistants in Nursing (AINs)
  • Recreational activities officer (lifestyle workers)
• The aim is to promote recruitment and retention, safeguarding the sustainability of the sector.

2. Hotelling supplement

• A new hotelling supplement to assist providers in covering the expenses relating to hotelling services, including catering, cleaning and gardening. Additionally, it allocates funds for increased wages for head chefs and cooks and establishes a mechanism to finance other non-care professionals for future Fair Work Commission decisions. This includes an extra $116 million in funding distributed over the next 4 years.

3. Alignment with award wage

• An additional $743 million (over 3 years) to align with the award wage increase to deliver a sector average of 215 care minutes from 1 October 2024.

4. 24/7 registered nurse supplement

• Increase the 24/7 registered nurse supplement, facilitating providers in hiring additional registered nurses to ensure on-site coverage through the entire week at residential aged care facilities. It applies to facilities with, on average, 60 residents or fewer per day (based on occupied beds).

Refer to the Department of Health and Aged Care for further information:
Funding higher wages in residential aged care | Australian Government Department of Health and Aged Care

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