Major Changes to Care Sector Awards: What You Need to Know for 2025

Author Image Written by Garth Belic

Learn about the changes made to the Aged Care sectors from January 2025, including new classifications, pay rates and award coverage for nursing assistants.

The aged care and healthcare sectors are seeing significant award changes starting January 1, 2025. These changes affect pay rates, classifications, and award coverage for many workers. Here's your comprehensive guide to implementing these changes in your organisation.

 

Back to top

 

The Aged Care Award now includes a clearer definition of 'direct care' employees and introduces a new classification structure for direct care workers. 

A direct care employee is someone who provides personal care, support, and services directly to aged persons in residential aged care facilities or community care settings. 

The new six-level classification structure creates clear career pathways and better recognises the increasing complexity of aged care work:

Level

Qualifications

Key Responsibilities

Level 1

No formal qualifications are required

- Entry level position

- Works under direct supervision

- Basic resident support duties

Level 2

Certificate III or equivalent

- Works under routine supervision

- Personal care duties

- Basic documentation responsibilities

Level 3

Certificate III with relevant experience

- Works under limited supervision

- Complex personal care duties

- Contributes to resident care planning

Level 4

Certificate IV or equivalent

- Works independently

- Specialised care responsibilities

- Mentors junior staff

- Participates in care plan development

Level 5

Advanced Certificate IV or diploma

- High level of autonomy

- Complex care coordination

- Team leadership responsibilities

- Care plan development and review

Level 6

Diploma with extensive experience

- Advanced clinical skills

- Program coordination

- Staff supervision and training

- Quality improvement activities

 

Changes for Nursing Assistants

From January 1, 2025, nursing assistants who were previously covered by the Nurses Award and work in aged care will transition to either the Aged Care Award or SCHADS Award. 

For nursing assistants moving to the Aged Care Award, the translation works as follows:

Previous Nurses Award Classification

Translated Aged Care Award Classification

First year (less than 3 months of work experience in the industry)

Aged care employee—direct care—level 1—Introductory

First year (3 months or more work experience in the industry)

Aged care employee—direct care—level 2—Direct Carer

Second year

Aged care employee—direct care—level 2—Direct Carer

Third year

Aged care employee—direct care—level 2—Direct Carer

Experienced (holder of relevant Certificate III qualification)

Aged care employee—direct care—level 3—Qualified

 

For Home Care Settings

The SCHADS Award introduces a new dedicated stream for aged care home care workers with six classification levels:

Level

Classification

Description

1

Introductory

Less than 3 months of aged carer experience

2

Home Carer

3+ months' aged carer experience

3

Qualified

Certificate III in Individual Support (Ageing) or equivalent

4

Senior

Certificate III plus 4 years experience at level 3 (post January 2025)

5

Specialist

Certificate IV in Ageing Support or equivalent

6

Team Leader

Certificate IV plus supervision/training responsibilities

 

Note: Both awards preserve the additional week of annual leave (6 weeks total) for nursing assistants employed before January 1, 2025. This protection does not apply to new employees hired after this date.

Implementation Requirements

Employers must:

  • Review each nursing assistant position to determine the correct award coverage
  • Apply the appropriate classification translation based on the work setting
  • Document and maintain protected annual leave entitlements for existing staff
  • Update employment contracts and payroll systems
  • Communicate changes clearly to affected employees

Back to top

 

The size of the increase varies based on award coverage and classification level.

Who gets an increase:

  • Direct care workers under the Aged Care Award
  • General care workers under the Aged Care Award
  • Aged care employees under the SCHADS Award
  • Nursing assistants (previously under the Nurses Award)

General workers under the Aged Care Award receive a 3% increase to their minimum pay rate from January 1, 2025. Direct care employees may receive different increases depending on their classification.

A second round of increases will come into effect on October 1, 2025, for some direct care employees.

Back to top

 

  1. Review your workforce and identify affected employees
  2. Check which award now covers each role
  3. Update payroll systems with new minimum rates
  4. Communicate changes to affected staff
  5. Plan for the October 2025 increases
  6. Ensure classification transitions are correctly implemented

Tools and Resources

The Fair Work Commission has updated several tools to help implement these changes:

Pay and Conditions Tool - Updated with new rates from January 1, 2025. Updated Pay Guides available for:

Looking Ahead

More changes are coming for nurses working in aged care under the Nurses Award, effective March 1, 2025. These include updates to pay rates and classifications as part of the Work Value Case for Nurses & Midwives.

Back to top

 

  • Visit the Fair Work Ombudsman website
  • Check the Fair Work Commission's detailed determinations
  • Contact your industry association
  • Seek professional workplace relations advice if needed

Stay informed about these significant changes by subscribing to Fair Work Ombudsman updates and following their social media channels for announcements and reminders.

Remember to document all changes made to employee classifications and pay rates and keep records of when these changes were implemented. This helps ensure compliance and makes it easier to manage future updates to awards and pay rates.

And if you need any assistance automating your payroll system to make sure you're compliant with these changes or have any questions about how these changes will impact your payroll, contact us today.