Federal Budget: 15% wage rise for aged care workers to come with a price tag for providers

The upcoming Federal Budget seems set to deliver a much-needed boost to the aged care workforce – but any funding is sure to come with strings attached for operators. With just two weeks to go until Treasurer Jim Chalmers hands down his second Budget, there is again pressure on aged care – and other sectors – to provide greater accountability for how they spend taxpayer money and deliver on care outcomes. The Australian yesterday published a story about a new Committee for Economic Development Australia (CEDA) report – titled ‘Disrupting Disadvantage’ – which has found over $60 billion in Government funding for community services like aged care, disability and social supports are not evaluated to measure their success. The unions have also been ramping up calls for greater transparency of aged care funding including ensuring that the upcoming 15% wage rise is passed onto workers. What does this mean for the sector? With the news last week that aged care is now the fifth-largest area of Government expenditure, it’s widely expected that the May Budget will deliver additional funds for the sector – including details of the 15% wage increase. But with the Government facing a Budget black hole – and calls to account for every dollar – it seems likely that there will be increasing requirements for providers to report on how the funds are allocated.

As we reported here, Aged Care Minister Anika Wells pledged to support the 15% wage increase – plus on costs – at the 2023 LEADERS SUMMIT but stressed that this funding needed to be deliver directly to aged care workers’ pockets, not the bottom line.

“It is not for the cross-subsidisation of services. It is for staff. It is not for budget repair. It is for staff. And why? Because workforce is our collective hands down, unquestioned, most pressing issue for all of us.”

Past calls to tie aged care funding directly to care have failed to gain traction. Today – with the Budget also expected to spend big on disability, defence and health – greater transparency and accountability seems all but guaranteed.