From the first full pay period on or after 1 August 2026, registered and enrolled nurses working in aged care will see another increase to their minimum award pay rates. It’s the third and final instalment of a reform that has been years in the making, and one that touches nearly every aged care provider, payroll team and nursing professional in the country.
Here’s a summary of what’s included, why it came about, and what it means for the industry and the wider community.
What’s included in the change
The 1 August 2026 increase is the final tranche of the Fair Work Commission’s Aged Care Work Value Case, specifically the Work Value Case for Nurses and Midwives. The case delivered a total increase of between 4 and 25 per cent to minimum pay rates for eligible registered and enrolled nurses working in aged care, on top of an earlier 15 per cent interim increase already in effect. Rather than applying all at once, the increase has been rolled out in three roughly equal tranches:
- 1 March 2025
- 1 October 2025
- 1 August 2026
Alongside the pay increases, the Commission also restructured the classification system for aged care nurses under the Nurses Award. Annual progression through pay points for lower registered nurse levels has been simplified, grades within higher levels have been removed, and a new Schedule F translation arrangement determines how existing employees are reclassified under the new structure. Enrolled nurses now move to a single, higher minimum rate rather than progressing through separate pay points.
It’s worth noting this is separate from the broader Annual Wage Review decision that lifted modern award minimum wages by 4.75 per cent from 1 July 2026, and pushed the National Minimum Wage to $26.44 per hour. Some aged care employees are covered by one change, some by both, depending on their award, classification and employer. Providers will need to work through both changes carefully rather than assuming they’re the same reform.
Why this reform came about
The Aged Care Work Value Case began with a claim from the Health Services Union in 2020, arguing that aged care work had been undervalued for years, in part due to the gendered nature of the caring workforce, and that the complexity of the work had increased without a corresponding recognition in pay. Over several years and stages, the Fair Work Commission agreed, delivering a series of decisions covering direct care workers, nurses and other aged care employees.
The nurses-specific decision, handed down in December 2024, set out the three-tranche pathway that concludes on 1 August 2026. The Australian Government has backed the changes with substantial funding, having committed a reported $17.7 billion in total across the various stages of the broader aged care work value reforms, including specific funding tied to the nurses’ decision. The Government has also opened grant opportunities to help providers cover the increased cost of historical leave liabilities created by the wage changes, offering to fund a portion of the additional liability for both residential and home care providers.
What it means for the industry
For providers, this is as much an operational and financial planning exercise as it is a compliance obligation. A few practical implications stand out:
Payroll and classification readiness. With the classification structure having changed as part of this case, providers need to ensure employees are correctly mapped under the new Schedule F arrangements, and that any employee who was on a higher rate under the old structure continues to receive it where required.
Cost and funding planning. Wage increases of this scale represent a genuine cost pressure for providers, even with government funding support. Providers will want to model the impact of the 1 August increase alongside the 1 July Annual Wage Review changes, and factor in how funding streams like Support at Home and residential care subsidies are adjusted to reflect the higher cost base.
Historical leave liabilities. Because leave entitlements accrue at current pay rates, a wage increase also increases the value of existing leave balances. The government grant opportunities aimed at offsetting this cost are a detail worth providers factoring into their financial planning, rather than treating the wage change as a pay-day-only cost.
Industry response to the broader reform has been mixed but largely constructive. The Australian Nursing and Midwifery Federation has welcomed the increases as an overdue correction, while also noting that some elements fell short of what the union and the ACTU had originally sought. That tension, between meaningful progress and calls for more, is likely to remain part of the conversation even after this final tranche takes effect.
What it means for the community
Wages are only one part of aged care quality, but they’re a significant one. Turnover, short staffing and reliance on agency workers are consistently raised by families as concerns about the quality of residential and home care. A more competitive minimum pay rate is one lever, among several, that can support providers to attract and retain nurses in a sector that has historically struggled to compete with pay rates in hospitals and other parts of the health system.
For prospective nurses considering aged care as a career path, or those already working in the sector, the cumulative effect of these reforms is a meaningfully different pay landscape to a few years ago. That shift may help address some of the workforce attraction and retention challenges the sector has faced, though it’s not the only factor at play. Career pathways, workplace culture, staffing ratios and job security all continue to shape whether nurses stay in aged care roles for the long term.
Getting ready for 1 August
The Fair Work Commission’s final determination setting out the exact rates for the 1 August 2026 increase will be published closer to the date. In the meantime, providers can use the time to:
- Review current employee classifications against the Schedule F translation arrangements
- Check that any employees on higher-than-minimum rates are correctly flagged so they aren’t inadvertently adjusted
- Model the combined impact of the 1 July Annual Wage Review and 1 August Work Value Case increases on payroll costs
- Register for updates on the government’s historical leave liability grant opportunities, if applicable to your organisation
For the most current and authoritative information, the Fair Work Ombudsman’s guidance on changes to minimum pay rates in the Nurses Award is the best starting point, and will be updated as the final determination is published.
Further reading
- Changes to minimum pay rates in the Nurses Award – Fair Work Ombudsman
- Additional pay increases for nurses and aged care employees – Fair Work Ombudsman
- Better and fairer wages for aged care workers – Department of Health, Disability and Ageing
How Care Systems can help
Reforms like this one are exactly the kind of change our Support Team helps clients prepare for. If your organisation needs assistance reviewing requirements, updating employee classifications, or configuring PayCare ahead of the 1 August 2026 increase, get in touch with our team early. As with any Award or Enterprise Agreement change, we’ll talk through the scope and any applicable costs with you before starting the work, so there are no surprises along the way.
This article is general information only and does not constitute legal, financial or payroll advice. Aged care providers should confirm the exact rates and requirements that apply to their organisation once the Fair Work Commission’s final determination is published.
