Aged Care Work Value Case Changes to Awards
The Fair Work Commission has announced changes to several awards as part of its Aged Care Work Value Case, which is effective from the first full pay period starting on or after 1 January 2025.
The changes affect the following awards:
- Aged Care Award
- Social, Community, Home Care and Disability Services Award (SCHADS Award)
- Nurses Award
Below is a summary of the changes:
Employees in the Aged Care Award
The Aged Care Award has been updated to include:
- A definition of ‘direct care’ employee to clarify their role in the aged care sector.
- A new classification structure for direct care workers.
The classification schedule will also be updated to reflect the duties and qualifications for general and direct care employees.
From 1 January 2025, Nursing Assistants working in residential care who are currently covered by the Nurses Award will be covered by the Aged Care Award. The schedule will contain tables to help identify an employee’s new classification. This includes the reclassification of direct care employees covered by the Aged Care Award and Nursing Assistants from the Nurses Award.
Pay Rate Increases
Minimum pay rates will increase from 1 January 2025 for eligible employees working in the aged care sector listed below:
- Direct care workers covered by the Aged Care Award, including Nursing Assistants who were previously covered by the Nurses Award.
- General care workers covered by the Aged Care Award.
- Aged care employees covered by the SCHADS Award, including Nursing Assistants who were previously covered by the Nurses Award.
The increase may differ in amount and effective date. Some employees will receive a second increase on 1 October 2025.
New Streams for Home Care Employees in the SCHADS Award
Home care worker classifications will be split into two streams in the SCHADS Award from 1 January 2025.
The updated schedule will include:
- A new classification added to the Aged Care Award, which will contain tables to help identify an employee’s new classification. This includes the reclassification of direct care employees covered by the Aged Care Award and Nursing Assistants from the Nurses Award.
- A new classification translation schedule will also be added to the SCHADS Award, which will contain tables to help identify an employee’s new classification. This includes the reclassification of home care employees covered by the SCHADS Award and Nursing Assistants from the Nurses Award.
The existing home care stream will be renamed “Home Care Employees – Disability Care.” It will cover home care workers performing work for clients in disability care.
Award Coverage for Nursing Assistants in Aged Care
Nursing Assistants currently covered by the Nurses Award who perform aged care work in the aged care sector will be covered by either the:
- Aged Care Award
- SCHADS Award
The award coverage will depend on the employer’s industry and the work performed.
What Does This Mean for You?
Please review the structure of your classifications. If any changes need to be made to the structure (i.e., classifications or costing mechanisms), please log a support ticket to schedule the work. If you are unsure of what changes need to be made, also log a support ticket, and one of our Project Implementation Specialists will review this.
For more information regarding the Aged Care Work Value Case, please click on the Government links below: