Care sector pay funding: $630 million to back the Commission’s pay rises
The federal government announced $630 million in care sector pay funding on 13 October 2026, to deliver fairer pay to more than 460,000 health, disability and community services workers. The money follows Fair Work Commission findings that work in these industries has been undervalued because of gender-based assumptions.
Where the money goes
The funding goes to charities and not-for-profit organisations that deliver government programs, so they can meet the wage increases without cutting services. Over 128,000 organisations funded under 92 programs will receive extra funding to put award-related wage changes in place while keeping services running.
Legal, housing and youth workers are covered too
The care sector pay funding also supports government-funded organisations that employ workers in other sectors affected by the award changes. The release names legal assistance, housing, youth, community development and First Nations health and community services workers as examples.
What the ministers said
The announcement was a joint release from Employment Minister Amanda Rishworth, Finance Minister Katy Gallagher, Health Minister Mark Butler and Social Services Minister Tanya Plibersek. They said it delivers on the government’s 2025 election commitment to work with the Commission on its Priority Awards Review. Butler said the investment would help keep existing workers and make the sector a more attractive career. The government also says Australia’s gender pay gap is at a record low.
What is not yet clear
The release does not say when the new pay rates start or how the care sector pay funding will be paid to organisations.
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General information only, not legal advice. Check the official source before acting.
Source: Department of Employment and Workplace Relations. Licence: CC BY 4.0.
