The Impact of the Wage Increase on Your Aged Care Services and Support
Recently, Aged Care workers and nurses received a historic wage increase. The Australian Government wants to tackle the shortage of staff in the Aged Care sector by giving them a valuable incentive to stay and attract new employees. In this blog post, we will explain the details of this wage increase and how it will directly impact your personal Aged Care plan.
The Wage Increase Explained
Starting from June 30, 2023, Aged Care workers, including nurses, personal care workers, and home care workers, received a 15% increase in their wages. The Government wants to help the Aged Care sector by attracting new workers and encouraging the current ones to stay by giving them more money for their work.
To make this happen, the Australian Government is investing a big amount of $11.3 billion. This shows that the Government values Aged Care workers and the important work they do. It's the biggest pay increase ever for these workers, and a step in the right direction to recognise their hard work and skills. By paying workers better, it will be easier to find and keep good workers.
Who Will Receive the Wage Increase?
The wage increase primarily benefits direct care workers in residential Aged Care and Home Care settings. This includes:
Registered nurses, who have completed their education and provide professional healthcare services.
Personal care workers, who assist with daily tasks like grooming, bathing, and dressing.
Home care workers, who support individuals in their own homes by helping with activities such as errands, meal preparation, transportation arrangements, and housekeeping duties.
The Benefits for Aged Care Clients
The pay increase for Aged Care workers brings positive changes for everyone who receives Aged Care services, including those with a Home Care Package (HCP). These changes include:
Keeping Familiar Caregivers: When workers get higher wages, they are more likely to stay in their jobs. This means you can have the same caregivers who already know you and can provide consistent care.
Better Quality of Care: With better pay, caregivers are happier and more motivated. They will work harder to meet your needs and provide high-quality care.
More Caregivers Available: Higher wages can encourage new people to choose a career in Aged Care. This helps to fill the gaps in the workforce and ensures that there are enough caregivers to support you and others.
Government's Commitment: The Government's decision to invest in higher wages shows that they care about improving Aged Care. They value the important work that caregivers do and want to make sure you receive the best care possible.
Overall, the pay increase aims to make sure you receive better care and support as an Aged Care client. It helps retain experienced caregivers, improves the quality of care, attracts new caregivers, and shows a commitment to your wellbeing.
The Impact on Your Home Care Package
To ensure your Aged Care workers receive their pay increase, your Provider may need to increase the charges for care and services such as nursing, personal care, and cleaning.
But don't worry! Your Home Care Package has also been increased by 11.9% starting from July 1, 2023, to cover the cost of the wage rise and other price increases. The Government wants to make sure that you continue to receive the same services as before the increase.
Any changes to your home care agreements or prices cannot be made without your consent. Your Provider will need to get in touch with you to update your service agreement and discuss any proposed changes. They will explain what the changes are, why they are being made, and when these changes will take effect.
What is a Reasonable Price Increase?
Providers have expenses to cover in order to deliver the services they provide to you. While the Government is covering (most) of the wage increase, there are other associated costs that Providers need to manage themselves, such as superannuation for workers (which has also increased). Additionally, overall business expenses like fuel, lease prices, marketing, and administration costs have increased due to the rising cost of living.
Understanding whether the price charged is reasonable or not can be challenging for you. However, your Provider will be able to explain the reasons for any price increases and clarify any concerns you may have.
What if You Don’t Agree to the Price Increases?
Your Provider should have contacted you to explain any changes in your service agreement or rates. If you have concerns or questions about the proposed changes, we encourage you to reach out to your Provider and ask them to clarify the reasons behind the price increases.
If you find that the changes are reasonable and directly linked to the national wage rise, it is recommended that you sign your new service agreement documents promptly. Delaying this process could impact the availability of your services and prevent the additional funding allocated by the Government from reaching your dedicated Aged Care workers who rightfully deserve it.
What if You Don't Have Enough Budget?
If you find that your HCP budget is becoming tight, there are a few things to consider:
Reassessment: If you are using your entire package budget on nursing and personal care but are on a level 1-3 package, it may be a good idea to request a reassessment. You can ask your Provider for assistance with this process. If you are already on the highest package (level 4), your Provider may be able to apply to the Government to cover any gap costs.
Self-Management: Another option to get better value from your HCP is to self-manage your package. This means you or your family can take control of managing the funds and services you choose. By doing this, you can reduce admin costs and can negotiate rates directly with your workers, resulting in potentially lower fees. To learn more about the different ways your package can be managed click here to read our previous blogpost about HCP’s and scroll down to ‘How do you choose an Aged Care Provider’.
Remember, your Provider can offer guidance and support for exploring these options to ensure you are getting the most out of your HCP budget.
Conclusion
The wage increase for Aged Care workers is a big step towards recognising and valuing the important work they do. This decision directly affects the quality of care you receive and aims to create a more sustainable and thriving Aged Care sector.
As an Aged Care client, you can expect a workforce that is more motivated and dedicated. This means your personal Aged Care plan will be supported by highly skilled professionals who genuinely care about your wellbeing.
We hope this information helps you understand the wage increase and the positive impact it will have on your Aged Care journey. If you have any questions about the changes we are making within Sistability, feel free to reach out here. We are committed to your satisfaction and look forward to seeing the positive changes of the national wage pay increase to the Aged Care sector as a whole!
At Sistability, our mission is to assist you in living a more independent life. We take pride in partnering with Aged Care Providers throughout the Northern Rivers region to offer domestic support services to recipients of Home Care Packages (HCP). Through these valuable partnerships, we deliver top-quality care right in the comfort of your own home.
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