New definition of PCWs could put homes at risk of missing mandatory targets

Residential care providers have been handed a hammer blow to care minute calculations after a Department of Health and Aged Care webinar crystallised the definition of Personal Care Workers (PCWs) that could severely impact how staff responsibilities are managed. 

Major changes with no fanfare

Earlier this year, the department subtly updated its definition of a PCW, effective as of January 1, 2025. It reflects changes in the Aged Care Award 2010 and the Nurses Award 2020.

For the purposes of care minutes, the department stated:

A PCW is an employee classified under Schedule B.2 in the Aged Care Award 2010 as an Aged Care employee – direct care level 1 to Level 6 (or in an equivalent role in an equivalent award or enterprise agreement or individual contract/agreement) whose primary responsibility is to directly provide personal care services to residents under the supervision of an RN or EN. Personal care services primarily consist of assisting with daily living activities, attending to personal hygiene, physical, administrative and cognitive needs and assisting with clinical care and provision of medical treatments and procedures where qualified to do so.

Additionally, from 1 January 2025, Assistants in Nursing (AINs) from the Nurses Award 2020 that work in residential aged care services transitioned to the Aged Care Award 2010, and are considered PCWs for the purposes of care minutes. 

New definition of Personal Care Workers

Many providers currently use hybrid roles where staff do some personal care. Under the new definition, only the portion of their role that is direct care may be counted, or they may not count at all.

Here is the example shared by the department during this week’s webinar:

Melanie is employed as a PCW: She spends 80% of time doing personal care tasks such as assisting with eating, drinking, bathing and washing residents, and 20% of her time doing food preparation and cleaning. Melanie’s primary responsibility is to directly provide personal care services to residents. Time spent with residents attending to their needs is considered direct care.

Paul is employed as an Aged Care employee – direct care level 4: Spends 40% of time doing food preparation and other food related activities, 30% of his day providing one-on-one social and emotional support and 30% providing personal care services. Paul is not considered a PCW because his primary responsibility is not providing personal care services to residents under the direct supervision of an RN or EN. 

G5 Strategic Principal Consultant Stephen Rooke attended the webinar and stated, “The introduction today of a new definition of care worker completely excludes any direct care work done by staff members who spend more than 50% of their time on other duties. 

“It didn’t say if a person who works one entire day in the kitchen and a different day as a carer was impacted, or if it only applies to people who split up their time within the same shift. Even if it’s only within the same shift, this potentially spells the end of the house-hold model of aged care. 

“Was it the intention of the government that all of those providers close their facilities, or was the slide misleading? I can’t recall any consultation or announcements on this before today.”

Financial Shepherd Aged Care Consulting Executive Director Steven Hughes added that the department ‘teased’ and ‘skimmed over’ the definition during the webinar. 

The department’s quiet update to the definition in February fits with that approach, despite it being a major change to providers that employ hybrid roles and do not classify those workers as PCWs. 

It could impact how care minute targets are achieved if providers have been reporting direct care that is now ineligible. Homes may struggle to meet their mandated targets without hiring more narrowly defined PCWs, or they may need to restructure roles and reassign staff. While this in itself is not a bad thing, it is just another challenge to overcome. 

Missed opportunities for clarification

The residential aged care financial reporting and care minutes funding update webinar also highlighted the following key points:

Care minutes funding changes (Effective April 2026)

• Applies only to non-specialised residential aged care homes in metropolitan areas (MM1)
• Funding to be adjusted via:
  • A Base Care Tariff (BCT) reduction of 0.113 NWAU per resident per day (~$31.64)
  • A new care minutes supplement tied directly to performance on care minute targets, starting with October–December 2025 data
• Full AN-ACC funding remains in place until March 2026, with adjustments beginning April 2026
• Payments based on a matrix that considers both total care minutes and RN minutes delivered

Care minutes performance statement

• A new annual statement, subject to external audit under ASAE 3000, will consolidate care data already submitted in QFRs and RN reports
• Intended to reduce audit costs and administrative burden for providers
• Audit assurance required to confirm reported care minutes reflect reality

More information on those changes can be found here. 

Unfortunately, Mr Hughes expressed his disappointment over the webinar, which he said provided very little new information.

“What really gets me is they made no attempt in making the financial focussed content digestible even though a large percentage of their audience have a nursing background,” he added.

“I believe what we are seeing is a department that has no accountability to the people who it services. The Care Minute Supplement (CMS) is an example of this as it is punishing providers for not adhering to a questionable, moralistic and bureaucratic care minute structure.

“It’s more important than ever that providers work together to defend our rights so we can continue to provide exceptional service to the people who matter the most, our residents.”

With the new Aged Care Act and associated requirements coming into effect in less than two months, it feels like this was another missed opportunity to truly inform providers about what they need to do to be compliant.