The Aged and Community Care Providers Association (ACCPA) has welcomed the government’s decision to fully fund the 5.75% award increase for all aged care workers, announced by the Fair Work Commission in June.
The increase represents a $2.194 billion dollar boost for the aged care sector, as it struggles with a workforce crisis, while also trying to meet higher staffing requirements as a result of the Royal Commission.
The fully funded 5.75% pay rise is on top of the 15% boost for direct care workers from 30 June 2023.
“We are delighted the government agrees with ACCPA that increased funding is required now and welcome Minister Anika Wells’ commitment to ensuring providers can continue to operate, for the benefit of older Australians, in these very challenging times,” said ACCPA CEO Tom Symondson
“It’s very clear from the Government’s own data, that the sector’s financial sustainability is at risk. Without support to fund the 5.75% increase, which providers passed on in full to their hard working staff members back in July, many providers would struggle to make ends meet.”
“We are pleased the government joins ACCPA in the belief that improving the pay and standing of our workforce will be a key driver of successful aged care reform.”
“We will continue to work with the Government to ensure that the once-in-a-generation aged care reform results in better lives for older people,” Mr Symondson says.
The increase not only funds the pay rises from 1 December, but includes back pay for the 1 July to 30 November period, which is extremely welcome, as those amounts have already been paid to staff. This ensures residential aged care providers are funded for the increased award wages being paid to registered nurses, enrolled nurses, assistants in nursing, personal care workers and recreational activities officers (lifestyle workers).
As part of this uplift to support the award wage rise, an additional $21.5 million has been committed for 24/7 RN supplement funding, also commencing 1 December 2023.
From 2024, the annual price for AN-ACC will be announced in August and come into effect on 1 October.
“This decision is vital to residential aged care providers, because it offers greater certainty in the government funding they will receive each year, and will resolve the current issue where budgets are set before wage increases are announced, meaning they often do not match,” Mr Symondson says.
A recent report by the Committee for Economic Development of Australia (CEDA) found there would be a shortfall of at least 110, 000 direct-care workers in aged care by 2030.
