THE Abbott government has suspended processing new applications from aged-care operators seeking to sign up to the previous government's program offering workers a modest pay boost.
The former Labor government introduced earlier this year a $1.2 billion aged-care workforce compact that would give aged-care workers supplementary payments of one per cent over and above award increases.
To access the supplementary payments, employers had to sign up to enterprise bargaining agreements (EBA).
The payments of an extra $1 an hour kicked in from July 1.
However, some private and catholic aged-care facilities were concerned their staff would not be eligible and criticised what they said was a lack of consultation ahead of the move.
Assistant Minister for Social Services Mitch Fifield said on Thursday the Abbott government was suspending applications for the supplement while it consults with the sector on alternative policy options.
He said aged-care facilities eligible for the supplement will continue to receive it and the Department of Social Services would continue to process current applications.
Senator Fifield said the government will consider transitional arrangements for these providers as it develops alternative policy options.
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