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.
Key Awards Affected
New Classification Structures
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
Pay Rate Changes
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.
What Employers Need to Do
- Review your workforce and identify affected employees
- Check which award now covers each role
- Update payroll systems with new minimum rates
- Communicate changes to affected staff
- Plan for the October 2025 increases
- 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.
Getting Help
- 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.