How Will Regis Healthcare Navigate New Government Wage Funding Boosts?
Regis Healthcare acknowledges the Australian Government’s recent announcement to increase aged care funding through higher AN-ACC prices and hotelling supplements, aimed at supporting wage rises for care workers. The company is currently assessing the financial implications of these changes.
- Government raises AN-ACC starting price and hotelling supplement from October 2025
- Funding targets wage increases for direct care workers and nurses per Fair Work Commission rulings
- Regis Healthcare evaluating financial impact including reweighting of activity units
- Wage adjustments effective from October 2025 and August 2026 for nursing staff
- Regis commits to ongoing market updates as details become clearer
Government Funding Boost for Aged Care Wages
On 12 September 2025, the Australian Government announced an increase in the Australian National Aged Care Classification (AN-ACC) starting price alongside a higher hotelling supplement. These adjustments are designed to fund wage increases for aged care workers, following recent Fair Work Commission (FWC) decisions. Regis Healthcare Limited, one of the country’s largest aged care providers, has formally acknowledged this development and is currently assessing the financial impact.
Targeted Wage Increases for Care Staff
The funding uplift specifically addresses the FWC’s Work Value Case rulings, which mandate pay rises for direct care workers starting 1 October 2025, and for registered and enrolled nurses with staged increases commencing 1 October 2025 and continuing into 1 August 2026. Additionally, the government’s annual wage review for all aged care workers is factored into the pricing changes. These measures aim to improve workforce retention and attract skilled professionals in a sector facing ongoing staffing challenges.
Financial Impact and Market Implications
Regis is undertaking a detailed review of the announced changes, including the reweighting of the National Weighted Activity Unit (NWAU) by resident class, which affects how funding is allocated based on care needs. While the company has not yet disclosed the precise financial impact, it has committed to keeping investors informed as more information becomes available. This cautious approach reflects the complexity of integrating government funding changes with operational cost structures.
Sector-Wide Significance
The government’s move signals a broader commitment to addressing wage pressures in aged care, a sector critical to Australia’s ageing population. For providers like Regis, balancing increased funding with rising labour costs will be a key challenge. The announcement may also influence investor sentiment across the aged care sector, as companies recalibrate their financial forecasts in light of these regulatory-driven cost adjustments.
Looking Ahead
As Regis continues its assessment, market participants will be watching closely for updates on the financial ramifications and operational adjustments. The company’s response will offer insights into how well the sector can absorb these mandated wage increases without compromising service quality or profitability.
Bottom Line?
Regis’ unfolding response to government wage funding changes will be pivotal for aged care sector valuations in the months ahead.
Questions in the middle?
- What is the estimated net financial impact of the AN-ACC price increase on Regis’ earnings?
- How will Regis adjust its operational strategies to manage rising labour costs?
- Could further government funding adjustments be anticipated beyond 2026?
