Aged Care Award 2010

[2025] FWC 2328

FAIR WORK COMMISSION

STATEMENT

Fair Work Act 2009

s.158—Application to vary or revoke a modern award

Aged Care Award 2010

(AM2020/99 and AM2021/63)

Nurses Award 2020

(AM2021/63)

Social, Community, Home Care and Disability Services Industry Award 2010

(AM2021/65)

JUSTICE HATCHER, PRESIDENT

SYDNEY, 11 AUGUST 2025

Applications to vary modern awards – work value – Aged Care Award 2010 – Nurses Award 2020 – Social, Community, Home Care and Disability Services Industry Award 2010 – Tranche 2 draft determinations issued.

On 15 March 2024 the Expert Panel in these matters determined that there were work value reasons for a further increase to minimum rates of pay for identified classifications of employees in the aged care sector covered by the Aged Care Award 2010 (Aged Care Award), the Social, Community, Home Care and Disability Services Award 2010 (SCHADS Award) and the Nurses Award 2020 (Nurses Award) (Stage 3 decision).[1]

Aged Care and SCHADS Awards – second (and final) phase increase

Having reached this conclusion, the Expert Panel in the Stage 3 decision settled the rates of pay and classification structures for the Aged Care Award and the SCHADS Award. The classification structure and rates of pay for the Nurses Award were not finalised at this time, with the Expert Panel instead opting to do so in conjunction with the Australian Nursing and Midwifery Federation’s application in matter AM2024/11.

The operative date and phasing-in arrangements were finalised with respect to the Aged Care and SCHADS awards on 27 June 2024.[2] The Expert Panel determined that the relevant increases to rates should be implemented in two phases with an operative date of 1 January 2025 for the first phase and 1 October 2025 for the second phase.[3] Determinations giving effect to the first phase of increases were issued on 11 September 2024.[4] (The determination for the Nurses Award set out consequential amendments to the award only).

Draft determinations giving effect to the second phase of increases are published in conjunction with this statement, with an operative date of 1 October 2025. This will be the final increase to wage rates for relevant employees covered by the Aged Care and SCHADS Awards, giving full effect to the Stage 3 decision in respect of these awards.

Nurses Award – second phase increase

As set out above, the classification structure and wage rates for relevant employees in the Nurses Award was not finalised in the Stage 3 decision, but was held over to be dealt with in conjunction with matter AM2024/11. However, in response to parties’ concerns at delaying the determination of this matter until the second application had been heard, the outstanding part of the aged care work value case was ultimately finalised separately to AM2024/11.

Increases to the wage rates of identified employees covered by the Nurses Award as well as relevant operative dates and phasing-in arrangements, were determined by the Expert Panel on 6 December 2024.[5]

The Expert Panel determined that the increase to rates should be implemented in three phases on 1 March 2025, 1 October 2025 and 1 August 2026.[6] A determination giving effect to the first phase of increases was issued on 20 December 2024.[7]

A draft determination giving effect to the second phase of increases is issued in conjunction with this statement, with an operative date of 1 October 2025. The third and final increase remains.

Next Steps

Draft determinations for the Aged Care Award, SCHADS Award and Nurses Award are published with this statement.

Any comments of a technical nature regarding the draft determinations must be sent to awards@fwc.gov.au by 12.00 pm (AEDT) on Friday 22 August 2025.

Final determinations varying the modern awards will be published by 1 September 2025. The determinations will commence operation on 1 October 2025.

PRESIDENT

[1] [2024] FWCFB 150.

[2] [2024] FWCFB 298.

[3] [2024] FWCFB 298 at [17] and [20].

[4] PR779150; PR779152; PR779153.

[5] [2024] FWCFB 452.

[6] [2024] FWCFB 452 at [65].

[7] PR782723.

Printed by authority of the Commonwealth Government Printer

In this case, the Fair Work Commission (FWC) issued draft determinations for the Aged Care Award 2010, the Nurses Award 2020, and the Social, Community, Home Care and Disability Services Industry Award 2010. The determinations were in response to applications seeking to vary these awards based on work value. The applications were brought under the Fair Work Act 2009 and the parties involved included various stakeholders within the aged care, nursing, and community services sectors.

The central legal issues before the FWC were whether there were work value reasons to further increase the minimum rates of pay for certain classifications of employees in the aged care, community, home care, and disability services sectors. The FWC had to consider the recommendations of the Expert Panel established to assess these matters. Additionally, the FWC had to determine the appropriate operative dates and phasing arrangements for the proposed increases. The FWC needed to balance the need for fair compensation for workers against the financial implications for employers.

The FWC reviewed the recommendations and evidence presented by the Expert Panel. The Panel had concluded that there were indeed work value reasons for increasing the minimum wage rates. The FWC agreed with the Panel's findings and issued draft determinations for the Aged Care Award and the SCHADS Award, with a final increase effective from 1 October 2025. For the Nurses Award, the FWC issued draft determinations for the second phase of increases, to be effective from 1 October 2025. The final phase for the Nurses Award will take effect on 1 August 2026. The FWC considered the phased approach to be reasonable, allowing employers time to adjust to the increased wage costs.

The final determinations, subject to any technical comments received by 22 August 2025, will be published by 1 September 2025 and will take effect from 1 October 2025. The determinations will implement the agreed wage increases for the relevant employees, aiming to ensure fair compensation while considering the practical implications for the industry.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established