The beginning of 2025 has ushered in significant changes for Australia’s aged care sector, with new measures aimed at improving workforce conditions, enhancing service delivery, and strengthening consumer protections.
These reforms come as part of the government’s continued focus on transforming aged care and ensuring better outcomes for workers and recipients alike.
From 1 January 2025, aged care workers have seen further increases in award wages, building on the 15% rise implemented in 2023. These adjustments reflect varying increases based on classification and role, with workers in both direct care and support positions benefiting.
Minister for Aged Care, Anika Wells, hailed the changes as another milestone in recognising the essential work of aged care staff.
“These award wage increases apply to workers providing direct support to older people, such as personal care workers, assistants in nursing, recreational activities officers, and home care workers,” Minister Wells said. “They also include roles supporting the operational needs of residential services, like administration staff, drivers, and maintenance workers.”
Key highlights include:
Funding to support these wage increases is part of the Albanese Government’s $3.8 billion commitment over four years, complementing the $11.3 billion allocated in 2023.
To ensure a robust workforce pipeline, new investments have been made:
These initiatives aim to address workforce shortages while equipping new entrants with the skills and experience needed for a successful career in aged care.
Significant changes to fees and charges have also taken effect. From 1 January, the maximum room price a residential aged care provider can charge without approval has increased from $550,000 to $750,000.
This change simplifies processes for providers while maintaining oversight through the Independent Health and Aged Care Pricing Authority (IHACPA) for higher accommodation costs.
Additionally, the new Higher Everyday Living Fee will replace the Extra Service Fee and Additional Service Fee. Designed to improve transparency, this optional fee allows residents to personalise their care with premium goods and services. All agreements for Extra Service Fees must transition to the new structure by 30 June 2026.
Recognising ongoing challenges posed by COVID-19, the government has allocated $157.8 million for continued outbreak management in residential aged care. This includes surge workforce programs and measures to address low vaccination rates.
Furthermore, Commonwealth Home Support Programme (CHSP) meal providers have received a 10% funding top-up to alleviate cost pressures and ensure continued delivery of healthy meals for older Australians.
As the sector anticipates further reforms, the six-month countdown to the new Aged Care Act and Support at Home program has begun. These wide-ranging changes will redefine service delivery and consumer protections, setting a strong foundation for the future of aged care in Australia.
Minister Wells emphasised the government’s long-term commitment:
“Our investment is focused on delivering the largest improvement to aged care in 30 years, building and strengthening the aged care workforce with better and fair wages, and improving aged care for over 500,000 older people seeking aged care every year.”
How is this going to be policed to ensure the funding goes to exactly what it should be used for.
It all sounds great, yet aged care now is built like a business and thats is where it all has gone wrong.
Everything looks good on paper and buildings that are new and shiny, yet we still have management, board members who have no idea about what it takes to take care of these people in THEIR home ( aged care) staff can report, talk in staff meetings yet it all gets swept under a “thats to hard” rug.
Theres no initiative for new comers to stay in the workforce, and no appropriate places for young people or people with a disability only to live in, but are forced to live in a nursing home.
I could go on for hours.