The final step of the aged care wage increase for registered and enrolled nurses arrived on 1 August 2026, and home care providers are now dealing with the flow-on effects. Payroll costs have moved, leave balances are worth more, and Support at Home budgets were lifted on 1 October 2026 to reflect the change.
Each event touches a different part of the business, from payroll and rostering to service prices, participant budgets and what the board sees. This article walks through what changed, how the leave-liability grant works, and the governance steps that keep a home care provider on the right side of the pricing rules.
Key Takeaways
- Registered and enrolled nurses covered by the Aged Care Award received their final agreed pay increase on 1 August 2026, according to the Commission's Quality Bulletin #7-2026.
- A Department grant funds up to 50% of the increase to leave entitlements for eligible home and community providers, including Support at Home and CHSP providers.
- Support at Home quarterly budgets rose on 1 October 2026; My Aged Care says the amounts were increased to reflect the Nurse Award increase.
- A higher budget is not permission to raise prices. Any price change still has to be reasonable, based on actual costs, published on My Aged Care and handled under the service agreement.
- Boards should receive a single report covering payroll compliance, grant claims, re-costed services and any participant price changes.
What Changed in the 2026 Award Wage Round
The 1 August 2026 increase was the last scheduled step in a multi-year set of award changes for aged care nurses. The Aged Care Quality and Safety Commission's Quality Bulletin #7-2026 notes that the Fair Work Commission has changed three aged care awards in recent years: the Aged Care Award, the Social, Community, Home Care and Disability Services (SCHADS) Award and the Nurses Award. Most changes are in place, with several pay rises since 2022.
The same bulletin confirms that registered and enrolled nurses covered by the Aged Care Award receive the final agreed pay increase on 1 August 2026. For home care employers, the practical question is which of your workers sit under which award, and whether every rate in your payroll system moved on the right date.
Which workers to check
Home care workforces often span more than one award, so a single payroll update rarely covers everyone. Work through each group separately.
- Nurses - registered and enrolled nurses delivering clinical care; confirm which award or agreement covers them and whether the 1 August 2026 step applied.
- Personal care and home support workers - workers commonly engaged under the SCHADS Award in home care; confirm their classification and that earlier rises were correctly applied.
- Staff on an enterprise agreement - agreement rates must not fall below the relevant award, so check the base rates of pay after each award change.
If your workforce is covered by an agreement rather than the award, our guide to enterprise agreements in aged care covers the bargaining side. This is general information, not legal or industrial relations advice; confirm award coverage with the Fair Work Ombudsman or your adviser.
How the Leave-Liability Grant Works
The grant pays part of the extra cost of leave that staff accrued before the pay rise and will now be paid out at the higher rate. When a nurse's hourly rate goes up, every hour of annual leave and long service leave already on the books becomes more expensive overnight.
The Department's 26 August 2026 announcement explains that the grant, titled "Aged Care Award Wages - Historical Leave Liabilities Increases - 1 August 2026", helps providers cover some of the higher costs from the Fair Work Commission's 1 August 2026 wage increase for eligible aged care nurses. You can read the details on the Department's page about the leave costs grant.
Who is eligible and how much
- Home and community providers - up to 50% of the Fair Work Commission increase to leave entitlements, for Support at Home, CHSP, Transition Care Program and NATSIFAC providers.
- Aged care home providers - up to 25% of the increase to leave entitlements.
- Multi-Purpose Services - funded through existing agreements rather than this grant.
Applicants must be registered providers. Before applying, pull a report of leave balances for eligible nurses as at the pay rise date, calculate the uplift at the new rate, and keep the working papers with the application. The grant guidelines set the closing date and evidence rules, so read them directly rather than relying on summaries.
The Support at Home Budget Uplift
Participant budgets rose on 1 October 2026, and My Aged Care states the amounts were increased to reflect the increase to the Nurse Award. Budgets are normally indexed each 1 July, so this October lift was a separate adjustment.
According to My Aged Care, the classification 1 quarterly budget went from $2,752.50 to $2,757.89, and classification 8 went from $20,034.28 to $20,073.50. The annual budget for classification 8 is now $80,294.00.
The budget structure has not changed. There are 8 ongoing classifications, plus transitioned Home Care Package classifications for people approved on or before 31 October 2025. Each annual budget is split into four quarterly amounts held by Services Australia, and the Department states that 10% is allocated for care management. Our explainer on Support at Home classifications covers how assessors set the level.
Update participant budgets
Section 155-50 of the Aged Care Rules 2025 requires providers to prepare the budget with the older person and review it when services, costs or contributions change, as the Commission's Quality Bulletin #7-2026 points out. A budget uplift combined with a cost change is exactly that trigger. Care partners should refresh each participant's budget, explain what the extra funds can buy, and record the conversation.
Re-costing Services and Changing Prices
A Support at Home price review should start from your actual costs, not from the size of the budget increase. The Department's May 2026 consumer protections announcement confirms that providers must keep setting reasonable prices based on the costs they incur to deliver a service, publish the price they most frequently charge for each service on the My Aged Care website, and keep records showing what their prices include.
Start by re-costing nursing services with the new wage rates, on-costs and leave loading, then check whether the price still covers cost. If you change a price, the costing file should show why, and our guide to reasonable pricing evidence explains what that file should hold.
Price change checklist
- Re-cost each affected service line using the new award rates.
- Compare the result against current prices and the quarterly National Summary of Support at Home Prices.
- Document the reason for any change and approve it under your delegations.
- Update the price published on My Aged Care.
- Notify participants in line with the service agreement and update budgets with them.
The Commission is watching this closely. Since August 2026 it has run a targeted review of selected Support at Home providers on communication and transparency, so a price rise without clear notice to participants is a real regulatory risk. A written fee transparency policy gives staff one set of rules for how prices are set, published and communicated.
Payroll Compliance and Workforce Planning
The first governance step after any award change is to confirm every affected employee was paid correctly from the right date. Run an exception report for nurses showing pay rate before and after 1 August 2026, and check casual loadings, penalty rates and allowances flowed through. Back-pay any shortfall and record the fix.
Higher nurse costs also change roster economics. Shift mix, travel time and the balance between nurses and support workers all affect what each service costs. Your rostering and workforce planning policy should require a cost review whenever award rates change, so roster decisions and service prices stay aligned.
Reporting to the Board
Boards need one consolidated view of the 2026 wage events, not scattered updates from payroll and finance. A short paper after each award change should cover:
- Payroll - confirmation that rates were applied on time, with any underpayments found and fixed.
- Grant - whether the leave-liability grant was claimed, the amount sought and the evidence held.
- Pricing - services re-costed, prices changed, and the date My Aged Care was updated.
- Participants - number of budgets reviewed and any complaints about price changes.
Governa's policy templates and Norma, the AI assistant, can help map these steps to your obligations, but the decisions and evidence stay with your team.
Related Resources
- Staff Rostering and Workforce Planning Policy
- Fee Transparency and Financial Governance Policy
- Governance and Board Accountability Policy
- Support at Home Reasonable Pricing Evidence
- Support at Home Service Agreements
- Fair Work Ombudsman
Frequently Asked Questions
Does the 1 October 2026 budget increase mean we should raise our prices?
No. A budget increase gives participants more funding, but your prices must still be reasonable and based on the costs you incur. Re-cost first, and change a price only where the evidence supports it.
Can we claim the leave-liability grant for SCHADS Award workers?
The Department describes the grant as covering higher costs from the 1 August 2026 wage increase for eligible aged care nurses. Check the grant guidelines for exactly which employees and leave types qualify before including anyone else in a claim.
Is CHSP eligible for the leave grant?
Yes. The Department lists registered providers delivering CHSP among eligible providers, alongside Support at Home, the Transition Care Program and NATSIFAC, with funding of up to 50% of the increase to leave entitlements.
Do we need to tell participants before changing a price?
Yes. Follow the notice terms in your service agreement, update the price published on My Aged Care, and review the participant's budget with them. The Commission is reviewing provider communication and transparency, so keep a record of each notice.
How often should the board hear about award changes?
At minimum, after each award change takes effect and again once grant claims and any price changes are complete.
Treat Each Award Rise as a Governance Event
The aged care wage increase is not only a payroll task; it reaches leave liabilities, participant budgets, service prices and board oversight. Providers that handle each step in order, with a record at every stage, will be ready when the Commission asks how a price was set. This week, run a payroll exception report for nurses from 1 August 2026 and pull leave balances so you can decide on a grant claim.
