In Australia, a significant pay rise amounting to $2.6 billion is set to benefit approximately 60,000 workers in the aged care sector, with the funding being detailed in the recent federal budget. This increase is a response to a Fair Work Commission ruling aimed specifically at aged care nurses. The phased pay rise will be implemented over the next five years, starting this month.
Treasurer Jim Chalmers highlighted the importance of ensuring that those who care for older Australians receive appropriate remuneration for their vital work. In addition to the pay rise for aged care workers, the government has allocated a further $2.5 billion to enhance aged care programs, which encompass both residential and home care services. Additionally, $291.6 million has been designated for aged care reforms, aimed at fulfilling the recommendations from the Royal Commission into aged care.
However, the new budget also includes the elimination of a previously proposed $21.2 million initiative from the 2022-2023 budget, which focused on exploring multidisciplinary care options in residential settings. This adjustment in budget priorities occurs alongside commitments made by the government to improve wages for the early childhood education and care workforce, with an investment of $3.6 billion aimed at enhancing their pay.
The government’s budget papers connect these pay rises to the issue of the gender wage gap, noting that paid care work is predominantly performed by women, who historically have been underpaid and in insecure roles. Approximately 92% of the early childhood education workforce and 86% of aged care workers are women, highlighting the budget’s crucial role in addressing this disparity.
Overall, these measures reflect the government’s commitment to ensuring that individuals who care for both the elderly and young Australians are compensated justly for their important work.