Aged Care workforce Reform
Cook AP
Author
The Albanese Government has implemented historic investments to transform the aged care workforce, delivering better pay, training, and career pathways.
The Labor Government has committed $11.3 billion to fund a 15% pay rise for aged care workers that took effect from July 2023, benefiting more than 250,000 workers. This represents the largest one-off increase to aged care wages in history and has been supplemented by an additional $3.8 billion over four years for further award wage increases that began on 1 January 2025. These investments recognize the essential role of aged care workers and aim to address critical staffing shortages across the sector.
Beyond wage increases, the government has allocated $88.4 million in the 2024-25 Budget to attract and retain aged care workers, including initiatives focused on rural and remote areas where shortages are most acute.
Since January 2025, the Aged Care Transition to Practice Program has received $10.3 million to support 2,125 nurses building their skills in their first aged care role, while $18.4 million has been invested in the Aged Care Nursing Clinical Placements program to give 8,000 nursing students hands-on experience in aged care settings.
These workforce initiatives have already delivered tangible improvements for residents, with an additional 3.6 million minutes of care provided every single day in residential aged care facilities. The quality of facilities has also improved, with an increase in 4-5 star homes and a reduction in 1-2 star homes across the country.
$11.3 billion for a 15% wage increase from July 2023
Additional $3.8 billion for further award increases from January 2025
More than 250,000 workers benefiting from pay rises
$28.7 million for nursing transition and placement programs
3.6 million additional minutes of daily care delivered