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Government to fund entire 15 per cent pay rise for aged care workforce

ACCPA has welcomed today’s announcement by the Albanese Government that it will fund in full a 15% pay increase for more than 250,000 aged care workers from 1 July 2023, following strong advocacy by ACCPA.

 

ACCPA CEO Tom Symondson said the decision represents an additional $11.3 billion in funding for aged care over four years in next week’s federal Budget.

 

“This comes as a welcome relief for workers and aged care providers alike after a six month campaign by ACCPA in seeking the government’s commitment to ensure the increase awarded by the Fair Work Commission last November is funded and paid in its entirety from July,” Mr Symondson says.

 

“It was not going to work for aged care providers and their staff to have the increase paid in two parts over 12 months – 10% this year and 5% next year – as originally intended by the government.

 

“The pandemic and reduced funding over the past decade has left the aged care sector struggling to attract new staff. Importantly, we also need to keep workers, who are exhausted after more than two years of supporting older people and keeping them safe from COVID-19.

 

“We are delighted the government agrees with ACCPA that increased funding is required now. Without a much needed pay increase, and support for providers to make sure it is paid to their staff on time and in full, we won’t be able to stem the exodus from our workforce.

 

“We know that the demand for workers in aged care will double by 2050, so we are grateful the government has recognised that we need to do all we can now to reward aged care staff for the important work they do every day.

 

“A key recommendation of the Aged Care Royal Commission is to raise the pay of aged care staff and work towards achieving a higher skilled workforce with career development pathways.

 

“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.”

 

Mr Symondson said ACCPA looked forward to seeing the details on the government’s decision including how additional on-costs will be funded.

 

“ACCPA 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.