“Aged care pay rises have cost us $250K”: operator
- Final wage rise: Nurses receive last instalment of FWC work value nurse pay increase
- Funding gap: Government does not fully fund leave loading
- Higher pay: Aged care RNs earning more than hospital nurses
- $18 billion investment: Cost taxpayers $18 billion
The Government’s failure to fully fund on-costs continues to leave providers out of pocket, as the final tranche of the Fair Work Commission’s nurses wage rise comes into effect.
From 1 August 2026, the wages of RNs and ENs working in aged care have increased from between 1% and 4%. See below.
The latest increases have been planned for and will not significantly impact results, says David Reece, CEO of Not For Profit Advent Care, which operates two aged care homes in Victoria.
However, the costs of covering leave loading has impacted operators' P&Ls over the three-year span of the FWC’s aged care wage rises because operators say the Government has failed to deliver on its promise to fully fund the increases.
The Commonwealth only funds 25% of the increase in the cost of leave entitlements for nurses working in residential aged care, and 50% of the cost of leave entitlements for home care nurses.
“We are probably a quarter of a million out of pocket because the Government reneged on its promise to fully fund [leave entitlements],” David said.
The Government noted last year that AN-ACC funding increases delivered last October would cover the August 2026 wage increases for two months until funding increased again from 1 October 2026.
Wage rises up to 25%
The FWC’s wage rise for nurses was handed down on 6 December 2024, recommending wages be rolled out in roughly three equal tranches. The increases The total increases range from zero to more than 25%. See below.
Earlier tranches were rolled out on 1 March 2025 and 1 October 2025.
Aged care pay exceeds public hospitals
Aged care nurses will now often be paid more than their public hospital counterparts.
A Level 2 RN with more than three years’ experience working in aged care will now be paid $2,046 per week, compared with $1,828.50 for a nurse working in a NSW public hospital – a 12% premium.
Unsurprisingly, the Australian Nursing and Midwifery Federation (ANMF) launched a Nurses and Midwives Work Value Case last month before the FWC, seeking wage increases for nurses, midwives and assistants in nursing (AIN).
If this new case proves successful, the cost is expected to be eye-watering. The Government has already funded the aged care wage increases to the tune of nearly $18 billion.
There are more than 400,000 aged care workers in Australia, including approximately 60,000 nurses.
