Australian government allocates $630 million to raise wages in the care sector
The Albanese administration will spend $630 million to fund pay increases for over 460,000 workers in health, disability and community services following a Fair Work Commission ruling on gender-based undervaluation.
Following a landmark Fair Work Commission finding that many female-led pay awards had been systematically undervalued, the Albanese government announced a $630 million investment to support wage rises for roughly 460,000 care-sector employees. The money will flow to over 128,000 charities and not-for-profit organisations operating under 92 health, disability and community-service programs, with the aim of preserving service continuity.
Finance Minister Katy Gallagher said closing the gender pay gap requires addressing this historic undervaluation, calling the initiative a step toward proper recognition of women’s work. Employment Minister Amanda Rishworth noted that the legislation now places gender equality at the heart of the Fair Work Act. Health Minister Mark Butler said the higher wages will help retain staff and make the field a more appealing career path. Additional support will extend to legal assistance, housing, youth, and First Nations health and community workers affected by the changes.
Why it matters
It aims to correct gender-based wage gaps and improve staffing in essential health and community services.
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