Government funding for aged care workers’ 15% pay rise, plus indexation, commenced on 1 July, but coverage for the necessary additional leave loading, which is calculated on present pay rates, remains unfunded – and is coming out of providers’ own hip pockets.

In a letter to providers sent on 13 June 2023, Minister for Aged Care Anika Wells said the Government will fund the 15% aged care worker pay rise, as well as a proportion of providers’ leave liabilities accrued prior to 2023-2024.

The letter said leave liabilities would be funded through a grant with “further details to be released shortly”.

Four months later, the Department of Health and Aged Care has little further to offer.

The grant “is currently being developed and is anticipated to be open late in the 2023 calendar year”, a spokesperson for the Department told The SOURCE.

“At the moment, every time [a member of staff] goes on leave, I’m paying them extra leave liability on the 15% pay rise,” Fabio Maya, CEO of family-owned aged care operator Signature Care told The SOURCE.

The Department also would not disclose the proportion of leave entitlements that will be funded.

“Grant funding can be used to offset the cost of historical leave liabilities accrued prior to 30 June 2023. These liabilities relate to long service, recreation, and personal leave (that presents as a liability on a provider’s balance sheet),” the spokesperson said.

“The proportion of liability funded will be disclosed when the grant applications open.”

The SOURCE: Aged care providers are currently carrying the significant cost of leave liabilities – and it appears they will have to continue to do so for some months. It’s unclear how much of those liabilities will be Government funded.