Aged care alert: FWO campaign underway

The aged care industry in Australia has seen significant transformation over the past five years, reshaped by new regulations, workforce demands, and heightened scrutiny. Challenges such as workforce shortages, compliance pressures, and the growing need for quality service continue to test providers. Yet, the sector is bracing for even more change ahead.

Looking forward to 2025, the industry is set for another year of reform. The Fair Work Ombudsman’s (FWO) proactive investigations will place a sharper focus on compliance, while wage increases aim to address staff retention and attract new workers. Additionally, the Federal Government’s proposed National Worker Registration Scheme highlights the ongoing efforts to professionalise and future-proof the aged care workforce.

Here, our experts break down these upcoming changes and what they mean for aged care support services in Australia, offering insights to help you stay ahead.

1. Proactive investigations set to start in February

From February 2025, the FWO will commence proactive investigations into the aged care sector to ensure compliance with the Fair Work Act 2009 (Cth) (FW Act). These investigations will focus on critical areas such as employee wages, entitlements, and record-keeping practices, to safeguard employee rights and hold employers accountable.

FWO inspectors have the authority to take a range of actions during investigations, including:

• Entering premises without prior notice.
• Conducting interviews (with consent).
• Requesting names, addresses, and key documentation.
• Issuing Compliance Notices.

It’s important to remember that employers must cooperate with all lawful requests made by the FWO during these visits.

What are the key risks for employers?

Aged care providers may face non-compliance with workplace laws if they’re found to have:

• Incorrectly applied wage increases or paid loaded rates that don’t meet award or enterprise agreement entitlements.
• Failed to maintain accurate and up-to-date employee records.
• Lacked a current understanding of evolving employment law obligations.
• Misunderstood or misapplied award or enterprise agreement conditions.

The consequences of non-compliance

Failure to comply with workplace laws can result in a variety of consequences, such as compliance notices, formal cautions, or enforceable undertakings. The FWO may also publish investigation findings on its website and release media statements highlighting recovered wages. Additionally, any deliberate attempts to obstruct or hinder an investigation could result in significant financial penalties.

2. Wage increases and changes for nurses in aged care have commenced

Mandatory wage increases are on the horizon for aged care workers, following updates to the Aged Care Award 2010 (Aged Care Award). Updated in January 2025, the Fair Work Commission (FWC) made changes affecting pay rates and classifications under the Aged Care Award, including bringing nursing assistants in residential care settings under its coverage, even if they were previously under the Nurses Award 2020 (Nurses Award).

What are the key changes coming in 2025?

Between January and March 2025, the following updates will take place:

• Three per cent wage increase: general care workers covered by the Aged Care Award will receive a three per cent wage increase, effective 1 January 2025.
• Simplified pay rates: from 1 March 2025, the pay structure for the ‘registered nurse – aged care’ stream will be simplified.
• Standardised starting pay: newly qualified registered nurses in aged care, irrespective of their qualifications, will receive a standardised starting pay rate.
• Higher minimum pay for enrolled nurses: enrolled nurses will see an increase in their base pay, with the previous pay points removed to offer a more streamlined classification structure.

New Schedule F – Translation Arrangement

To accommodate these updates, the Nurses Award will introduce a new Schedule F – Translation Arrangement, which will detail revised pay rates and classifications for enrolled and registered nurses working in the aged care sector.

These changes aim to better align wages with the value and expertise aged care workers bring to their roles while ensuring consistency across the workforce.

3. National Worker Registration Scheme feedback closes in April

From 18 February to 17 April 2025, the Albanese Government will seek feedback on the proposed creation of a National Registration Scheme for personal care workers in aged care. This scheme aims to establish a consistent framework for qualifications, training, and professional standards across the sector. Key elements of the proposed scheme are set to include new training requirements, mandatory qualifications and standards for conduct, English proficiency, and worker screening.

The consultation period presents an opportunity for industry stakeholders to shape a system that improves qualities and accountability while enhancing workforce professionalism.

4. The Annual Wage Review will occur in June

The FWC’s Annual Wage Review will take place in June 2025, with wage adjustments expected to be announced by the end of the month. Employers should stay informed and prepare for potential changes to employee pay rates.

5. Further wage increases are scheduled for October

A further wage increase for assistants in nursing and personal care workers will apply from the first full pay period starting on or after 1 October 2025. Employers should ensure their payroll systems are updated to reflect these changes.

How to prepare for these changes

Against this backdrop of change, aged care providers must remain adaptable and informed as they strive to meet these rising expectations while navigating an evolving compliance landscape. The year ahead will bring both challenges and opportunities that will continue to redefine the industry.

At Citation Legal, we specialise in employment law for the aged care and disability sectors. Our experienced team understands the unique challenges faced by providers in this industry. We have a proven track record of guiding organisations through complex regulatory changes, helping them remain compliant while focusing on delivering quality care.

Don’t leave compliance to chance. Take proactive steps today to ensure your organisation is ready for the changes ahead. Contact the Citation Legal team for a confidential discussion today.

About our author

Samantha Shariev is an Associate at Citation Legal. She regularly advises and supports our clients with a wide range of workplace and employment issues.