Financial Planning for Australian Aged Care Workers: Pay Rises, Packaging and Building Long-Term Security

The Fair Work Commission's Equal Remuneration Order delivered staged pay increases for aged care workers from 2023-24 - the largest sectoral pay adjustment in Australia's history. Understanding the increases is the starting point for financial planning.

• Background: In November 2022, the Fair Work Commission granted a 15% pay increase for direct care workers in the aged care sector, effective July 2023 - acknowledging decades of gender-based undervaluation in female-dominated care work
• Additional 2.9% increase: A further 2.9% increase was awarded for 2024-25, bringing cumulative increases to approximately 18% over two years for many aged care workers
• Who received the increases: Direct care workers - personal care workers, enrolled nurses, assistants in nursing, recreational activities officers, and some allied health assistants working in residential and home care
• SCHADS Award Grade 3 personal care worker: Pre-2023 approximately $52,000-$58,000. Post-increases approximately $60,000-$67,000 - a meaningful improvement but still below community median wages
• Enrolled Nurses in aged care: SCHADS Grade 4 equivalent - from approximately $63,000 to $73,000+ with the staged increases. Registered nurses in aged care are typically on nursing awards with different rates
• Enterprise agreements: Many large providers (Bupa, Estia, Regis, Calvary, Catholic Health) have EBAs above Award - ensure your employer has passed through the full Fair Work increase, not merely adjusted the Award minimum. Check your payslip against the Award or EBA

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Most residential and home care aged care providers are Public Benevolent Institutions (PBIs) or health promotion charities - qualifying for the most generous salary packaging concessions in the Australian tax system.

• PBI cap: $15,900 per FBT year (1 April – 31 March) in living expenses. An additional $2,650 for meal entertainment. Total: $18,550 in FBT-advantaged packaging annually
• Tax saving at Grade 3 ($63,000): Packaging $15,900 reduces taxable income from $63,000 to $47,100. Tax saving: approximately $5,168 at the 32.5% rate - effectively a 8.2% pay increase at no cost to the employer
• What to package: Rent, mortgage repayments, credit card bills, personal insurance premiums, car registration, school fees - any personal living expense can be packaged through your salary packaging provider
• Mortgage packaging strategy: Direct all $15,900 annually to your mortgage or home loan account - reducing the balance and saving interest while simultaneously reducing your taxable income
• Packaging card: Most providers issue a VISA/Mastercard packaging card - use it for groceries, fuel, and everyday spending. Every dollar on the card reduces your taxable income within the $15,900 cap
• Government employers NOT PBI: Government-funded aged care provided directly by state health departments or local councils may not be PBI - the applicable cap may be the government body $9,010 cap instead. Confirm your employer's status with HR
• RFBA and HECS: The packaged amount appears as RFBA on your income statement - increasing your HECS repayment income and Medicare Levy Surcharge income. At $63,000 taxable + $15,900 RFBA = $78,900 HECS income. Factor this into repayment planning

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Aged care work carries significant emotional and physical demands - high rates of compassion fatigue, burnout, and musculoskeletal injury are documented across the sector. Financial planning must build resilience against these career risks.

• Injury rates: Aged care has among the highest workplace injury rates in Australia - manual handling injuries (back, shoulders, wrists) from resident transfers are prevalent. Workers compensation covers workplace injuries but income can be disrupted during recovery
• Compassion fatigue: Continuous exposure to resident decline, death, and family grief takes a cumulative toll. Industry research shows 30-50% of aged care workers experience compassion fatigue symptoms. Financial security reduces the pressure to continue working in unsafe conditions
• Emergency fund priority: Before investing, build 3-6 months of living expenses in an accessible HISA. At $3,000/month costs, that is $9,000-$18,000. This funds recovery from injury, a planned career break, or a transition to a different care role
• Income protection insurance: Personal IP insurance covers any cause of inability to work - not just workplace injuries. At aged care wages, a 90-day waiting period policy costs approximately $30-$60/month - manageable even on Grade 3 wages
• Career transitions: Many aged care workers transition to coordinator, clinical lead, facility management, or allied health roles over time. Plan for study costs (Certificate IV in Aged Care, Diploma, Enrolled Nursing conversion) - typically $3,000-$15,000 and may be HECS-eligible
• Sector-wide workforce reform: The federal government's aged care reforms (Aged Care Act 2024) are driving structural changes - higher care minutes, improved worker ratios, and ongoing wage advocacy. Workers who build clinical skills and qualifications are well-positioned for this evolving landscape

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Aged care workers are often in HESTA (Health Employees Superannuation Trust Australia) or Australian Retirement Trust - both strong-performing industry funds. Active super management significantly improves retirement outcomes.

• HESTA: The default fund for many health and community services workers including aged care. Historically strong performance - Core Pool option has returned approximately 8-8.5% per year over 10 years. Low fees (0.67% MER on Core Pool). HESTA also provides group income protection and death/TPD cover
• Consolidate old funds: Many aged care workers have accumulated multiple small super balances from earlier casual or part-time roles. Find and consolidate via myGov ATO portal - multiple accounts mean multiple fee sets and insurance premiums eroding small balances
• Investment option review: HESTA's Core Pool (balanced) is the default. Workers in their 20s and 30s may benefit from reviewing the Eco Pool (higher growth, ethical) or other high-growth options. Check APRA performance data before switching
• Co-contribution opportunity: Workers earning under $45,400 (after packaging) can make a $1,000 non-concessional contribution and receive the $500 government co-contribution. At Grade 3 with significant packaging, taxable income may fall below the threshold - the co-contribution is free money
• LISTO: Workers with post-packaging taxable income below $37,000 receive the automatic LISTO payment of up to $500 - effectively refunding contributions tax. Aged care workers at lower grades with full packaging may qualify
• Salary sacrifice: At Grade 4-5 ($70,000-$80,000), marginal rate is 32.5%. Salary sacrifice to the $30,000 concessional cap (minus SG) saves 17.5 cents per dollar sacrificed - meaningful on these income levels

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Aged care workers have legitimate work-related deductions that reduce taxable income. Combined with salary packaging, proactive deduction management meaningfully increases take-home pay.

• Union fees: United Workers Union (UWU) or relevant state union - fully deductible
• Uniforms and PPE: Self-purchased nursing/carer uniforms, non-slip shoes, gloves, and personal protective equipment not supplied by the employer. Laundry at ATO reasonable rates or actuals
• Registration fees: AHPRA registration for enrolled nurses in aged care - fully deductible. First aid certificate renewal - deductible for roles requiring it
• Professional development: Manual handling training (self-funded), dementia care courses, medication administration certificates, leadership training directly related to current role
• Mobile phone: Work-related proportion of personal phone - client care calls, care management apps, staff communication. Use percentage or log method
• Vehicle: If required to travel between care sites (home care workers visiting clients) - 88 cents/km (2024-25) for verified work journeys. Home care workers driving between client homes can claim these journeys

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Aged care workers do some of Australia's most important and demanding work - often for wages that leave little margin. Roopon membership helps close that gap with partner discounts on groceries, fuel, dining and everyday spending, stretching every dollar of a hard-earned salary.

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