Aged care workers receive vehicle allowance increase

Thousands of aged care and community sector workers will receive a higher vehicle allowance from this month, following a Fair Work Commission decision aimed at helping offset rising fuel and transport costs.

From 1 September, the vehicle allowance under the Aged Care Award and the Social, Community, Home Care and Disability Services (SCHADS) Award has increased from $1.01 per kilometre to $1.05 per kilometre. The temporary increase will remain in place until 28 February 2027.

The decision followed an application led by Australian Unions, including the Australian Services Union and the Health Services Union, concerned about the impact of fuel costs on the frontline workers who rely on their own vehicles to deliver care in homes and communities across Australia.

ACTU President Michele O’Neil welcomed the outcome.

“This is positive news for community and aged care workers and means their vehicle allowances will help keep pace with fuel costs at the petrol station bowser for the next six months,” Ms O’Neil said.

She said the increase would be particularly important for workers travelling long distances to support clients.

“The higher allowance will make all the difference to aged care and community workers when it comes to deciding if they can afford to fill up their vehicles and make it to work to support often vulnerable clients.”

The ACTU said thousands of workers in aged care, home care, disability support and community services would benefit from the higher rate.

“We urge all employers to make sure workers who are required to use their own vehicle for work are not left out of pocket,” Ms O’Neil said.

Earlier this year, the Australian Nursing and Midwifery Federation (ANMF) warned that rising fuel prices were placing significant financial pressure on nurses, midwives and aged care workers.

“On top of higher mortgages, rents and energy bills, the financial burden of simply getting to and from work is becoming untenable for many of our ANMF members,” federal secretary Annie Butler said.

The union argued that healthcare workers could not avoid travel costs because their roles require face-to-face care.

“In these challenging economic times, many professionals are able to off-set their daily living costs by choosing to work remotely from home, but nurses, midwives and aged care workers must deliver in-person care at hospitals, aged care facilities, community health centres and in people’s homes across the country – 24/7,” Ms Butler said.

Concerns about access to care were also raised by providers. During the fuel crisis, Wesley Mission warned that shortages and escalating costs risked disrupting essential services for vulnerable Australians.

“You cannot deliver care on empty. If care workers cannot get fuel, people miss out on essential support. It is that simple,” acting chief Karen James said.

“These are services that cannot be paused or delivered remotely.”

The Fair Work Commission said the increase was necessary because employees covered by either the the Aged Care or Social, Community, Home Care and Disability Services awards frequently use their own vehicles for wor,k and because higher fuel costs threatened the adequacy of the minimum safety net.