The government announced in February that aged care workers would be eligible for two payments of up to $800. But less than half of providers expected to apply for the scheme have done so.
Eligible employers can lodge applications for their staff from March 1. They are encouraged to pay the bonus at the same time as they lodge their application.
What is the bonus?
The aged care bonus 2022 is a payment of up to $800, which will be paid over two payments of $400 each, to care and support workers in home care packages, direct care workers, food preparation workers and cleaners in residential aged care. It’s part of the government’s Covid-19 response to address staff shortages and provide financial incentives to encourage them to continue working in the sector during the pandemic.
The UWU welcomed the announcement of a bonus payment but says it won’t fix wages in the long term. “The fact is that aged care workers do important work but they are not highly skilled and it’s not an industry where you can get paid well enough to attract and retain people," says Carolyn Smith, the UWU’s Aged Care Director. エイジングケアアカデミー
In a joint statement released on 1 February, the ANMF, ACTU, HSU, and AWU, along with employer peaks, called on the Federal Government to fund the full cost of the workforce retention bonus payments. They agreed that the $800 payments were far too little to address the workforce crisis in aged care and that they should be increased to a sustainable level.
Since the program’s launch more than four weeks ago, less than half of the expected aged care providers have applied. Of those that have, only around a quarter of the eligible workers have been awarded the bonus. The UWU says this is mainly due to the systemic issues of low pay and poor staffing in aged care which the Federal Government continues to ignore.
It is also worth mentioning that a large percentage of aged care workers are casual or contracted employees. It is unlikely that they will receive the bonus unless their employers have applied on their behalf. This is because the process of calculating the worker’s hours involves comparing data from different timesheets, which is often difficult when working in aged care where shifts can change from week to week. As a result, it is important that casual and contract workers make sure to apply for the bonus payments.
Who is eligible?
On 1 February, the Government announced that aged care workers would receive bonus payments of up to $800 in two instalments. The money is being paid to care and support workers who are employed in government-subsidised home care packages, and direct care workers, food preparation workers and cleaners in residential aged care.
Eligible nurses are also eligible to receive a bonus payment. The payments are intended to encourage registered nurses to undertake aged care work and stay with their employer for longer than is currently the case. The registration bonus payments will be made for periods of up to six months, and are worth a total of $3,700. The first of these payments will be available from November 2021 to October 2022, and the second will be available from 1 November 2022 to 31 October 2023.
However, less than half of aged care providers have lodged applications for the worker bonuses - even though they were only due to start on March 1. Health officials told Senate estimates this week that as of April 4, just 945 of the country’s more than 265,000 aged care workers had received their first bonus payments.
It’s likely the low uptake is down to a number of factors. Some providers have reported problems with the online application process, while others say they have simply been too busy to apply for the grant. And despite the government’s insistence that the scheme is on track, many providers have complained of delays in processing their applications.
But the real problem with the worker bonus payments is that they do nothing to address the underlying issue of low pay and high workloads in aged care. When the payments were first announced, ANMF joined with other unions and employer peaks to release a joint statement that called on the Government to take urgent action to tackle the crisis in aged care.
The bonus payment rates were based on the assumption that each worker works full time. But that’s not the case in aged care, where most people work part-time. This has resulted in a situation where the payments for part-time workers are much higher than those for people working full time.
How can I apply?
The Government announced in February that aged care workers would be eligible for two cash payments of up to $800. However, many aged care workers have still not received their bonus payment. This is because providers have had to apply for the funding and then need to pass it on to their staff.
The Department of Health tells HelloCare that when aged care workers receive their bonus will depend on when their employer lodges an application for the funds. A spokesperson told the website that age care providers are encouraged to pay the bonuses to their staff as soon as they can.
In the three weeks since the application process opened, around 650 providers had applied for the funding. Providers are meant to then pass the payments on to their staff within two pay cycles. However, the Department of Health says it is working with some aged care providers who are experiencing delays.
An ANMF (SA Branch) survey of aged care workers found that more than 70 per cent of respondents hadn’t received the bonus three weeks after it was promised. The union has called on the Government to extend the application period and reopen it for all aged care workers who had been eligible to apply before it closed in March.
The Work Bonus is a government initiative designed to support older Australians who want to remain in the workforce. In the first year, it will provide an income bank of up to $300 a fortnight for people who have worked or trained for at least 26 fortnights. This is in addition to their usual wages and allowances. The Work Bonus has been criticised by both the Opposition and the Greens, with critics pointing out that it fails to address the ongoing problems of low pay and understaffing in aged care.
If you are an aged care worker, the best way to find out more about the bonus is to ask your employer. However, the government advises that if you are not happy with the response you have had from your employer, then you can contact the Department of Health directly.
What if I don’t receive my bonus?
More than seven weeks after the Prime Minister promised aged care workers two payments of $400 a piece, most have still not received their bonus. Scott Morrison announced the move in February in an attempt to prevent a mass exodus of workers burnt out by two years of COVID-19 outbreaks. He said the $400 payments were effectively retention payments to keep staff. But national UWU aged care director Carolyn Smith says many workers have been let down.
Almost 71 per cent of workers polled by the union say they have not yet received the bonus payment they were promised. Ms Smith believes the government’s announcement created the impression that by March, workers would have the money in their hands. She says it was a “disappointment”.
Aged care providers are responsible for handing out the cash. They are expected to lodge applications with the federal government on behalf of their employees and then pay the bonuses directly to workers. The first payment was due to be paid on 28 February and the second on 28 April. Both payments are taxable.
However, it is understood that not all providers have lodged an application, with the UWU survey finding less than half have done so. The government is encouraging employers to pay the bonuses at the same time they apply, as this will reduce administrative costs.
The UWU’s survey also found that many aged care workers who are eligible for the payments are not getting them. This is likely because they are casual or contracted, and their hours vary from week to week. This makes it hard for providers to accurately calculate how much each worker should receive.
The UWU has called on the government to increase the size of the bonus payments, to take into account the additional pressures facing the aged care sector. It is also seeking a permanent pay rise to address concerns that cost-of-living pressures are adding extra stress to workers’ hip pockets. The matter is before the Fair Work Commission and a decision is expected by the middle of this year.