Minister for Aged Care and Sport, Anika Wells, has announced that from 1 October 2024, the Australian National Aged Care Classification (AN-ACC) price will increase to $280.01, a 13% increase, to fund the Fair Work Commission (FWC)'s Stage 3 pay rise as well as other cost increases, including increased care minute targets to 215 minutes, coming into effect on 1 October 2024.
Following the increase, which will take effect on 1 October 2024, care funding will have increased 58% since the Labor Government came into power in 2022.
Bu given the Minister had promised to release the information in August, the timing leaves little time for operators to factor in the changes.
The additional funding will cost the Government an additional $3.8 billion over four years according to the Minister. This injection builds on the Government's $11.3 billion 2023 commitment which funded the FWC's previous 15% award wage increase, and is on top of the $5.6 billion reform funding announced by Prime Minister Anthony Albanese last week.
From 20 September 2024, the hotelling supplement will also increase from $11.24 to $12.55 per resident per day. This includes $1.09 to fund the FWC stage 3 increase.
There will be a further increase of $1.89 on 1 July 2025 to fund higher hotelling costs as announced on Thursday 12 September 2024.
The Government will allocate $400 million over four years for the Home Care Packages (HCP) Program to enable providers to pass on the wage increase to staff.
Commonwealth Home Support Programme (CHSP) providers will be able to apply for a Grant Opportunity for additional funds.
