The Australian Government is investing an additional $3.8 billion over 4 years to support the aged care sector to continue to deliver a high standard of care for older people in Australia.

This investment funds the Fair Work Commission Aged Care Work Value Case Stage 3 decision. Around 340,000 aged care workers are expected to benefit from increases in award wages.

To support residential aged care providers to meet increased costs, including to increase their care minutes to 215 minutes, the Australian National Aged Care Classification (AN-ACC) price will increase to $280.01 from 1 October 2024.

There will also be changes to: 

• the AN-ACC base care tariffs (fixed funding)

• structure and weightings

• adjustments to the AN-ACC classification weightings (variable funding).

The care minute allocations associated with each AN-ACC class will also be adjusted to align with these changes and implement the increase to 215 care minutes. Service-level care minute targets that will apply from 1 October are now available on the department’s website. A calculator is also available to support providers to verify their new service-level targets.

The hotelling supplement will increase from $11.24 to $12.55 from 20 September 2024. Changes to the 24/7 RN supplement will also commence on 1 October 2024.

For the Home Care Packages (HCP) Program, the government has earmarked $0.4 billion over 4 years to increase the Commonwealth portion of the home care subsidy.

Commonwealth Home Support Programme (CHSP) providers will be able to apply for a grant opportunity for additional funds. This will ensure that CHSP providers are supported in providing the award wage increases to eligible staff.

Read the media release from the Minister for Aged Care, the Hon Anika Wells MP: Investing another $3.8 billion in quality aged care.

For further information see: 

• Better and fairer wages for aged care workers

• Funding higher wages in residential aged care

• Home Care Package subsidy