Unions win vehicle allowance increase for aged care and community workers

Aged care and community sector workers who use their own vehicles for work will receive a temporary increase in their vehicle allowance from 1 September.


Australian Unions have secured an increase in the vehicle allowance paid to community and aged care workers following an application to the Fair Work Commission.

The Commission has agreed to temporarily increase the allowance from $1.01 to $1.05 per kilometre for workers covered by the relevant aged care and community sector awards.

The increase, led by Australian Unions, including input by the Australian Nursing and Midwifery Federation, will apply from 1 September 2026 until 28 February 2027.

The increase will help aged care workers meet the costs of travelling the longer distances often required to reach clients in outer suburban and regional areas.

The uplift is intended to help offset fluctuating fuel prices, maintenance costs and other expenses associated with using personal vehicles for work.

ACTU President Michele O’Neil welcomed the decision.

“This is positive news for community and aged care workers and means their vehicle allowances will help keep pace with fuel costs at the petrol station bowser for the next six months,” she said.

However, O’Neil said unions were disappointed the Commission had not extended the increase to workers in other sectors.

“While we’re disappointed the Fair Work Commission didn’t extend the increase to other workers in fast food and retail delivery, maintenance trades, firefighters and nurses, this is welcome news for aged care and community care workers,” she said.

The temporary increase will remain in place for six months, providing some additional financial support to workers whose roles require regular use of their personal vehicles.

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