Australia Commits $630M to Boost Pay for 460,000 Care Workers, Address Gender Pay Gap

October 12, 2026
Australia Commits $630M to Boost Pay for 460,000 Care Workers, Address Gender Pay Gap
  • The Australian federal government will commit 630 million Australian dollars to fund pay rises for more than 460,000 care sector workers after a Fair Work Commission ruling found gender undervaluation in female-dominated wage awards.

  • The package will raise pay in health, disability, and community service sectors, addressing undervaluation identified by the Fair Work Commission.

  • Labor ministers and union representatives emphasized the social importance of the sector, including supporting women escaping violence, reducing homelessness, and maintaining access to essential services.

  • Health Minister Mark Butler said the changes will help retain workers and make the care sector a more attractive career path.

  • Officials linked pay to workforce retention and attractiveness, with Butler noting the goal of retaining current staff and drawing in new workers.

  • Funding will also support government-funded organisations in related sectors such as legal assistance, housing, youth services, and First Nations health and community programs.

  • The package targets workers in added sectors, benefiting government-funded roles across housing, youth services, and community development.

  • Overall, the package aims to deliver fairer pay, strengthen the future workforce, and ensure Australians can access needed community services.

  • Finance Minister Katy Gallagher said the move addresses historic undervaluation of work predominantly performed by women and aims to close the gender pay gap, calling the gap at a record low."

  • Minister for Women Katy Gallagher stressed recognizing the sector’s value to society and addressing decades of undervaluation.

  • Funding is allocated to over 128,000 organisations across 92 programs in health, disability care, and community services to implement the wage changes while maintaining service continuity and equality.

  • A June collective claim from community and disability workers pushed for up to a 35 percent pay rise for about 300,000 workers, arguing undervaluation and heavy workload.

Summary based on 2 sources


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$630m splash on worker pay rises

news.com.au — Australia’s leading news site for latest headlines • Oct 12, 2026

$630m splash on worker pay rises

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