Aged care nurses across Australia have received another pay rise, marking the fifth and final wage increase delivered under the Albanese Government’s response to the Fair Work Commission’s landmark Aged Care Work Value Case.
The increase, which took effect on 1 August, represents the final stage of a multi-year wage reform that has lifted the salaries of thousands of registered and enrolled nurses working in residential aged care.
According to the federal government, a Registered Nurse at the most common classification level has received a cumulative pay increase of more than $36,000 a year since 2022, while an Enrolled Nurse at the equivalent level has seen wages rise by almost $32,000 annually.
The government says the wage increases are designed to improve workforce attraction and retention, address historical undervaluation of aged care work and support better care for older Australians.
Final instalment of historic wage case
The latest increase concludes the Fair Work Commission’s Aged Care Work Value Case, which found aged care work had been historically undervalued, particularly because of gender-based assumptions about caring professions.
In total, the Albanese Government says it has invested almost $18 billion to fund the wage increases, making it the largest investment in aged care workforce pay in Australia’s history.
Minister for Aged Care and Seniors Sam Rae said the increases were about recognising the value of aged care nursing while strengthening the sector for the future.
“We’re proud to have backed aged care nurses through five straight wage rises to ensure the payslip they take home reflects the incredible contribution they make keeping our loved ones safe and healthy,” he said.
“Better pay for nurses means better care for older Australians. Our record boost to wages is making it easier for aged care homes to attract and retain nurses, ensuring older people can access higher quality, more consistent care.”
Workforce pressures remain
Speaking during a visit to Creswick District Nursing Home in regional Victoria, Acting Prime Minister Richard Marles said improving wages was critical to retaining nurses in aged care.
He said the government had supported the Fair Work Commission’s decision to deliver the increases over five separate instalments and claimed the strategy was already helping stabilise the workforce.
“Turnover has gone down by 30 per cent as a result of these increases,” Mr Marles said.
However, Minister Rae acknowledged significant workforce shortages remain.
“We need a lot more,” he said when asked how many additional registered and enrolled nurses the sector requires.
He pointed to government-funded scholarship programs, career development initiatives and the introduction of 24/7 registered nurse requirements in residential aged care as part of broader efforts to strengthen the workforce. He noted that registered nurses are now present in aged care homes 99 per cent of the time nationwide.
Demand for aged care continues to grow
The minister also warned that Australia’s ageing population will continue to place increasing pressure on the aged care system.
He said around 90,000 Australians will celebrate their 80th birthday this year, representing a 600 per cent increase over the past 15 years. The demographic shift is expected to drive growing demand for both residential aged care and in-home support.
Mr Rae said the Commonwealth expects to spend $47 billion on aged care this financial year, with expenditure forecast to exceed $50 billion in coming years as reforms continue.
The latest wage increase comes as providers continue to navigate widespread workforce shortages while implementing the reforms introduced under the new Aged Care Act. Many providers have welcomed higher wages as an important step towards making aged care a more attractive long-term career, although industry leaders have consistently argued that continued investment in workforce development, training and recruitment will also be essential to meet growing demand.
