The Claim
“Axed a scheme to improve the wages of aged care workers.”
Original Sources Provided
✅ FACTUAL VERIFICATION
The claim is TRUE. In December 2013, the Abbott Coalition government used its numbers in Parliament to formally disallow the Aged Care Workforce Supplement (also referred to as the "Workforce Compact"), a $1.2 billion fund established by the previous Gillard Labor government [1][2][3].
The Workforce Compact was announced by Prime Minister Julia Gillard and Minister for Ageing Mark Butler in April 2012 as part of a broader $3.7 billion "Living Longer Living Better" aged care reform package [4]. The scheme was designed to provide approximately $1.2 billion over five years to improve wages for aged care workers through a "Workforce Compact" between government, unions, and aged care providers [4].
The scheme would have provided a 1% pay rise on top of award increases for aged care workers [1]. However, eligibility required aged care providers to have enterprise bargaining agreements (EBAs) in place, a condition the Coalition criticized as linking funding to union membership [2][3].
The Coalition suspended applications for the supplement upon taking office in September 2013, and on December 12, 2013, used parliamentary tactics to disallow the original Labor regulations that established the fund [1][2]. Only 12 providers who had already been receiving the supplement were grandfathered; all other providers were prevented from applying [2].
Missing Context
The claim omits several important contextual elements:
Low Uptake and Implementation Issues: As of September 26, 2013, less than 1% of aged care providers had applied for the supplement [1]. Assistant Minister for Employment Luke Hartsuyker stated that "the majority of aged care providers were not willing to apply for the supplement" and "it was never going to reach the majority of aged care workers" [1].
Coalition's Alternative Plan: The Coalition did not simply cut the funding—it promised to return the $1.2 billion to the general aged care funding pool and consult with the sector about alternative ways to distribute the funds [2][3]. Assistant Minister for Social Services Mitch Fifield stated Labor's scheme was "flawed and inequitable" and the Coalition had committed to "find a better way to distribute the money" [2].
Controversial EBA Requirement: The original scheme required providers to have enterprise bargaining agreements to qualify for funding. The Coalition portrayed this as "unionism by stealth" [1], arguing it inappropriately tied wage subsidies to union involvement rather than being available to all workers regardless of their workplace agreement structure [2][3].
Parliamentary Process: The Coalition used its lower house majority to disallow the regulations with little notice to the Opposition, a tactic Manager of Opposition Business Tony Burke criticized as not genuinely urgent [1].
Source Credibility Assessment
The original source is The Australian, a News Corp publication. The Australian is generally considered a mainstream, high-circulation national newspaper, though it has a documented center-right editorial stance and has historically been more sympathetic to Coalition governments than Labor governments [5].
The claim's factual basis is corroborated by multiple independent sources:
- ABC News (public broadcaster, generally considered balanced) [1]
- Sydney Morning Herald (mainstream media, Nine Publishing) [2]
- AustralianPolitics.com (political documentation site) [4]
The convergence of reporting across outlets with different political leanings confirms the factual accuracy of the core claim.
Labor Comparison
Did Labor do something similar?
Search conducted: "Labor government aged care worker wages Fair Work Commission equal pay case"
Finding: The Gillard Labor government was actually the government that established this wage enhancement scheme in 2012 [4]. The $1.2 billion Workforce Compact was a Labor initiative, not something the Coalition inherited from a previous government. Labor's approach involved:
- Direct funding allocation: $1.2 billion specifically earmarked for workforce wages over five years [4]
- Tripartite compact model: Government, unions, and providers negotiating wage improvements [4]
- EBA-linked distribution: Tied funding to providers with enterprise bargaining agreements—a structure the Coalition criticized as pro-union [2][3]
Historical Context: This occurred alongside the broader Fair Work Commission equal remuneration case for social and community services (SACS) workers, which resulted in significant wage increases for workers in similar feminized care sectors [6]. The Labor government was attempting to address systemic undervaluation of care work, with the Workforce Compact representing a parallel direct funding approach to wage improvement.
The Coalition's action represents a direct reversal of Labor policy rather than a departure from bipartisan precedent. There is no equivalent instance of a Labor government axing a Coalition-established aged care wage scheme.
Balanced Perspective
The Coalition's decision to axe the Workforce Compact can be understood from multiple perspectives:
Critics' View: Labor and unions argued the move denied approximately 350,000 aged care workers expected pay increases [1]. Opposition aging spokesman Shayne Neumann called it a "retrograde, tragic and shameful act" [1]. The aged care sector faced high turnover (around 40%) [1], and advocates argued wage improvements were essential for workforce retention and care quality.
Coalition's Justification: The government argued the scheme was structurally flawed because:
- It required EBAs, which they characterized as "unionism by stealth" [1]
- It had extremely low uptake (less than 1% of providers had applied) [1]
- The EBA requirement meant the majority of workers would never benefit [1]
- They committed to finding a more equitable distribution method using the same $1.2 billion [2][3]
Industry Response: Aged and Community Services Australia (industry body) acknowledged Labor's scheme had been "clumsy" and asked the Coalition to find a way to deliver pay rises to all aged care workers, not just those covered by EBAs [2]. This suggests sector recognition of the scheme's structural limitations.
Key Context: The claim presents the action in isolation as a simple wage cut. The full picture reveals this was a policy difference about how to distribute wage subsidies—Labor favored an EBA-linked compact model involving unions, while the Coalition preferred returning funds to general aged care pools for broader distribution. The Coalition maintained the funding remained available to the sector, just distributed differently.
Comparative Analysis: Unlike some criticisms of Coalition governments, this action does not have a direct Labor equivalent because Labor was the government that created the scheme. The Coalition's approach to aged care wages differed structurally from Labor's, but both governments claimed to be supporting aged care workers—through different mechanisms.
TRUE
7.0
out of 10
The Abbott Coalition government did formally axe the $1.2 billion Aged Care Workforce Supplement that the Gillard Labor government had established to improve aged care worker wages. This occurred in December 2013 through parliamentary disallowance of the regulations establishing the scheme [1][2][3]. The factual accuracy of the claim is well-documented across multiple news sources.
Final Score
7.0
OUT OF 10
TRUE
The Abbott Coalition government did formally axe the $1.2 billion Aged Care Workforce Supplement that the Gillard Labor government had established to improve aged care worker wages. This occurred in December 2013 through parliamentary disallowance of the regulations establishing the scheme [1][2][3]. The factual accuracy of the claim is well-documented across multiple news sources.
📚 SOURCES & CITATIONS (6)
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1
abc.net.au
Thousands of aged care workers will miss out on an expected pay rise after the Federal Government dumped a $1.2 billion fund set up by Labor.
Abc Net -
2
smh.com.au
The Abbott government has put a stop to a $1.2 billion scheme set up by the former Labor government to deliver pay rises to aged care workers.
The Sydney Morning Herald -
3
theaustralian.com.au
Theaustralian Com
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4
australianpolitics.com
Text, Audio and Video with details of the Aged Care policy announced by Prime Minister Gillard and Ageing Minister Mark Butler.
AustralianPolitics.com -
5
fairwork.gov.au
Fairwork Gov
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6
health.gov.au
Health Gov
Rating Scale Methodology
1-3: FALSE
Factually incorrect or malicious fabrication.
4-6: PARTIAL
Some truth but context is missing or skewed.
7-9: MOSTLY TRUE
Minor technicalities or phrasing issues.
10: ACCURATE
Perfectly verified and contextually fair.
Methodology: Ratings are determined through cross-referencing official government records, independent fact-checking organizations, and primary source documents.