A recent update to the definition of Personal Care Workers (PCWs) by the Department of Health and Aged Care has raised serious concerns among residential aged care providers in Australia.
The revised definition, effective from 1 January 2025, could significantly disrupt care minute calculations, potentially leaving homes at risk of failing to meet mandatory care targets. This change, introduced with minimal consultation, may force providers to overhaul staffing models, increase costs, and navigate operational challenges, all while striving to maintain quality care for residents.
Understanding the new definition
The updated definition specifies that a PCW is an employee under the Aged Care Award 2010, classified as a direct care worker (levels 1 to 6), whose primary responsibility is to provide personal care services to residents under the supervision of a Registered Nurse (RN) or Enrolled Nurse (EN).
These services include assisting with daily living activities, personal hygiene, and, where qualified, supporting clinical care or medical procedures. Additionally, Assistants in Nursing (AINs) transitioning from the Nurses Award 2020 to the Aged Care Award 2010 are now classified as PCWs for care minute purposes.
Crucially, the definition stipulates that only employees whose primary role (more than 50% of their time) involves direct personal care can be counted as PCWs. This excludes staff in hybrid roles who split their time between personal care and other duties, such as cleaning or food preparation, within the same shift.
For example, a worker spending 60% of their time on non-care tasks like kitchen duties and 40% on personal care would not qualify as a PCW, and their care minutes would not count towards mandatory targets.
Impact on care minute targets
The new definition poses a significant challenge for aged care homes, particularly those relying on flexible, hybrid staffing models. Many providers currently employ workers who perform a mix of direct care and ancillary tasks, a practice common in the household model of aged care, which aims to create a homelike environment for residents.
Under the revised rules, care minutes delivered by these workers may no longer be eligible, potentially causing homes to fall short of their mandated care minute targets.
Failing to meet these targets could have serious consequences.
From April 2026, funding for non-specialised metropolitan aged care homes will be adjusted based on performance against care minute targets, with a new Care Minutes Supplement tied to compliance.
Homes that miss targets risk financial penalties, including a reduction in the Base Care Tariff, which could equate to approximately $31.64 per resident, per day. This funding cut would strain already tight budgets, particularly amidst ongoing staff shortages and rising operational costs.
Operational and financial challenges
To comply with the new definition, providers may need to restructure staffing arrangements, either by hiring additional PCWs with narrowly defined roles or reassigning existing staff to focus exclusively on direct care. Both options present challenges.
Recruiting and training new staff is costly and time-consuming, especially in a sector already grappling with workforce shortages. Reassigning staff could disrupt established workflows and require significant investment in retraining, potentially compromising the quality of care during the transition.
Moreover, the shift away from hybrid roles threatens the viability of the household model of aged care, which relies on multi-skilled workers to provide holistic support. If providers are forced to adopt a more rigid staffing structure, they may struggle to maintain the personalised, resident-focused care that the model promotes.
This could lead to a decline in resident satisfaction and well-being, as well as increased pressure on staff to meet stricter role delineations.
Lack of clarity and consultation
The Department of Health and Aged Care has faced criticism for its handling of the change. The updated definition was introduced quietly in February 2025, with little fanfare or industry consultation.
A recent webinar on financial reporting and care minutes provided some clarification but left many questions unanswered. For instance, it remains unclear whether the definition applies to workers who perform non-care duties on separate shifts or only within the same shift.
This ambiguity has fuelled uncertainty among providers, who are already navigating a complex regulatory landscape with the new Aged Care Act set to take effect in July 2025.
Industry experts have expressed frustration over the lack of transparency and support. The webinar, intended to inform providers, was described as vague and overly technical, failing to address practical concerns or provide actionable guidance.
This has heightened fears that the department is out of touch with the operational realities faced by aged care homes, particularly those in regional or under-resourced areas.
Broader implications for the sector
The new PCW definition is just one of several regulatory changes placing pressure on aged care providers. The introduction of mandatory care minute audits, a new annual performance statement, and funding adjustments tied to compliance add to the administrative burden.
Smaller providers, in particular, may struggle to absorb these costs, potentially leading to closures or consolidation in the sector. This would reduce options for residents and exacerbate access issues, especially in rural and remote communities.
Furthermore, the focus on narrowly defined roles risks undervaluing the diverse contributions of aged care workers. Staff who perform a mix of care and non-care tasks often build strong relationships with residents, enhancing their emotional and social well-being.
Excluding these workers from care minute calculations could disincentivise holistic care practices, undermining the sector’s commitment to person-centred care.
What can providers do?
To mitigate the risks posed by the new definition, aged care homes must act swiftly. Conducting an audit of current staffing models to identify which workers qualify as PCWs under the new rules is a critical first step.
Providers should also explore ways to optimise rostering, such as separating care and non-care duties across different shifts, to maximise eligible care minutes. Engaging with industry bodies to advocate for greater flexibility and clarity from the department will be essential to ensure the long-term sustainability of the sector.
In the meantime, providers must balance compliance with the need to maintain high-quality care. This may involve investing in staff training to ensure workers are equipped to meet the new requirements or exploring innovative staffing solutions to address workforce shortages. Collaboration across the sector will be key to navigating these challenges and advocating for policies that support both providers and residents.
The new definition of Personal Care Workers represents a significant shift for Australia’s aged care sector, with far-reaching implications for care minute targets, funding, and operational models.
While the change aims to standardise care delivery, its restrictive approach risks destabilising providers already stretched by workforce and financial pressures. Without clearer guidance and greater flexibility from the Department of Health and Aged Care, aged care homes face an uncertain future, potentially compromising their ability to deliver the high-quality care that residents deserve.
As the sector braces for further changes under the new Aged Care Act, unity and proactive planning will be crucial to safeguarding the well-being of both residents and the workforce.
Great article. The latest webinar on 1 May 2025 went further. They announced more significant change now removing from the ‘direct care’ definition for PCWs any ‘social and emotional support’. This is a significant change as it was previously permitted with specific sections in their Dec 24 and Feb 25 guidelines. They previously noted “Social and emotional support is a vital part of residential aged care and time spent by care workers supporting residents’ social and emotional needs as a part of their duties can be included as care minutes.” That view has now changed even though it is part of the specified care we must provide. There is again implications now on household models and financial sustainability of the sector.