Budget Announcements for Aged Care

As the industry well knows, budget time can bring a lot of news for the Aged Care Industry. On Thursday, 4th May 2023, announcements were made by the Government of what Aged Care will be seeing in this Labor Government’s second budget.

The Government’s 2023 – 24 budget will include $11.1B over 4 years for Residential Aged Care Providers to fund the higher wages for Aged Care workers and support increased costs from 1st July 2023.

Here is a quick snapshot of what has been announced so far:

Aged Care Worker Pay Increase to be fully funded by Government

The Fair Work Commission’s decision for a 15% pay increase to be delivered to Aged Care workers, will be fully funded by the Government.

Quick Facts:

  • The 15% pay increase will apply to Aged Care workers in the roles of Registered nurses, enrolled nurses, assistants in nursing, personal care workers, head chefs and cooks, recreational activities officers (lifestyle workers) and home care workers.
  • The increase applies to payments made to employees from 1st July 2023
  • The funding will include on-costs & leave liabilities


You can read more from the Department on this announcement here: https://www.health.gov.au/ministers/the-hon-anika-wells-mp/media/albanese-governments-second-budget-to-deliver-fairer-wages-for-aged-care-workers

AN-ACC Starting Price

The AN-ACC Starting price will be increased from 1st July 2023 to $243.10.

Quick Facts:

  • The AN-ACC price for Residential Aged Care will increase from $216.80 to $243.10, from 1st July 2023
  • The increase is to fund the Aged Care worker pay rise and account for inflation and other increasing costs
  • The increase is based on advice from the Independent Health and Aged Care Pricing Authority


You can read more from the Department on this announcement here: https://www.health.gov.au/our-work/AN-ACC/funding-higher-wages-in-residential-aged-care#increase-to-the-anacc-price

Hotelling Supplement

A new hotelling supplement will be introduced, to cover the pay rise for head chefs and cooks in Aged Care.

Quick Facts:

  • The Hotelling Supplement of $10.80, per Resident, per day, will be established
  • The supplement will include the funding to cover the pay rise for head cooks and chefs working in Residential Aged Care Facilities
  • The supplement will be paid from 1st July 2023
  • The supplement will be automatically paid to eligible providers monthly alongside the other Residential Aged Care Supplements & Subsidies
  • All Residential Aged Care Providers who are not subject to sanctions, are eligible for the Hotelling Supplement


You can read more from the Department on this announcement here: https://www.health.gov.au/our-work/residential-aged-care/funding/supplements/hotelling

You can read more via the Aged Care Minister’s media release here; and the breakdown of funding detailed here.

Picture of Mathew Brincat

Mathew Brincat

General Manager - Clinical & Quality

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