Pay rises for aged care nurses funded with additional $2.6 billion

The Albanese government has quashed any remaining questions of how it will afford a pay rise for over 60,000 aged care nurses, with the Department of Health announcing an additional $2.6 billion investment into delivering higher wages.

The extra funding will bring the government's total investment in support of award wage increases for aged care workers to $17.7 billion, facilitating the Fair Work Commission's Aged Care Work Value Case decision.

It is understood that Labor was awaiting advice from the Independent Health and Aged Care Pricing Authority (IHACPA) before announcing changes to the Australian National Aged Care Classification (AN-ACC), hotelling supplement and 24/7 registered nurse supplement rates.

With this announcement, the government confirmed that as of March 1, the AN-ACC price and 24/7 RN supplement have both increased.

The hotelling supplement will increase to $13.46 per resident per day on March 20, with a further increase scheduled for July 1, when it will rise an additional $2.14.

Wages for registered and enrolled nurses working in aged care will increase an average of 12 per cent across three equal installments; 1 March 2025, 1 October 2025 and 1 August 2026.

Related: Aged care nurses set to earn more from March 1 | Dates for care workers’ pay rises set by Fair Work Commission – nurses still waiting | Gender pay disparity still rife in nursing

Minister for Aged Care Anika Wells used the funding announcement to draw attention to the country's ongoing gender pay inequalities.

“Aged care nurses are experts in their field and they deserve to be rewarded for the crucial role they play in delivering safe and quality care to older people in Australia,“ she said.

“Under a decade of Coalition governments, aged care workers, who are predominantly women, were systemically underpaid and undervalued. That ended with the Albanese Labor Government.

“Under the Albanese Labor Government, registered nurses working in aged care on the award wage are $430 a week better off, and enrolled nurses are $370 a week better off.

“Our government has delivered better award wages to recognise the value of all aged care workers to lift the standard of aged care in Australia.“

Shadow Minister for Health and Aged Care Senator Anne Ruston issued a stern response to the announcement, commenting that the Albanese government “has been dragged kicking and screaming into providing the funding needed.“

“Labor made a clear commitment to aged care nurses to fund the rise in line with the Commission’s determination, a promise which they were clearly prepared to break by pushing it out until late 2027,“ she said.

“Older Australians and hard-working aged care nurses deserve better than that.

“Our nurses are at the heart of aged care services, delivering dedicated, compassionate and essential care to older Australians.”