The Department of Health and Aged Care has clarified misinformation circulating about the timing of on costs payments to aged care providers delivering the Fair Work Commission’s 15% pay rise to staff.
A spokesperson for the Department told The SOURCE that for aged care and home care providers, funding which covers wages and on costs will be increased from 1 July 2023.
It will be provided through the normal payment arrangements (monthly in arrears), they said.
“Providers are encouraged to put claims for payment in promptly,” the spokesperson advised.
For Commonwealth Home Support Program (CHSP) and other smaller grant-based programs such as the National Aboriginal and Torres Strait Islander Flexible Care Program (NATSIFC), the funding will be available to providers from 1 July for all FWC costs. In this program, there may be a need for grant agreements to be updated and executed and this process may take longer, the spokesperson said.
The funding increases cover all wage-related on costs for aged care providers, however there is a separate grant for leave liabilities which is for one-off costs for leave liabilities accrued up to 30 June 2023.
