From January 1, 2025, aged care workers will see fairer wages, thanks to the Australian Government’s increase in Home Care Package (HCP) subsidies. This initiative is part of a broader aged care reform, aiming to improve conditions for workers while maintaining high-quality care for those receiving Home Care Packages.
Wage Increases for Aged Care Workers from January 1, 2025
A Step Towards Aged Care Reform
This initiative is part of the Australian Government’s $36 billion investment in aged care reforms over the next four years, addressing critical issues identified in the Royal Commission into Aged Care Quality and Safety. These reforms aim to ensure dignity, respect, and safety for older Australians while also acknowledging the invaluable contributions of aged care workers.
What This Means for Aged Care Workers
The Fair Work Commission’s wage increase was a significant win for aged care staff, but its success depends on funding. With the Home Care Package subsidy increase, providers will have the necessary financial support to implement these wage adjustments fairly.
If you’re an aged care worker, this means:
- Better pay, as providers receive higher subsidies to cover wage increases.
- Greater job stability, with more funding to retain and support workers.
- Stronger industry recognition, acknowledging the value of aged care professionals.
For more details on wage increases, visit the Fair Work Ombudsman.
What Happens Next
The Home Care Package subsidy will increase by 0.93% on 1 January 2025 to reflect the Fair Work Commission Stage 3 decision on award wage increases for eligible workers.
This funding boost ensures that providers can pass on the wage rises granted by the Fair Work Commission, recognising the vital role aged care workers play in supporting older Australians.
This money is specifically designated for wages, meaning aged care workers should see the benefit reflected in their pay checks.
If you work in aged care and have questions about how this change affects you, reach out to your employer or check government resources like My Aged Care.
Why the Subsidy Increase is Important
The subsidy increase represents a broader effort to address long-term challenges in the aged care sector. Recent studies have shown that aged care is one of the fastest-growing industries in Australia, with a projected need for 110,000 additional workers by 2030. However, workforce retention remains a concern due to historically low wages.
By prioritising fair wages, this initiative aims to ensure aged care remains an attractive and sustainable career option. Additionally, better pay and working conditions are strongly correlated with improved service quality, benefiting both workers and care recipients.
See Yourself as an Aged Care Worker?
By addressing workforce challenges head-on and ensuring fair pay for care workers, The Home Care Package subsidy increase takes a step towards creating a more sustainable and equitable aged care system in Australia.
If you see yourself as Aged Care Worker, there is no better time to embark on the journey than now! At GBCA, we offer the Certificate III in Individual Support and Certificate IV in Disability Support, with solid support to assist you on your rewarding journey.
Reach out to us today for any further questions, or to enrol in our upcoming intake.