Government gives $630m funding boost to organisations hit by gender-equality wage rise

The federal government has announced it will give a $630 million boost to organisations operating in the woman-dominated health, disability and community service sectors to help them meet the Fair Work Commission’s wage rise.

Last year the Fair Work Commission announced it would raise wages across five female-dominated industry awards where it found the work had been undervalued because of gender-based assumptions.

Some of those rises came into effect this year and others will come into effect next year.

The government says this new funding is designed to make it easier for charities and not-for-profit organisations to meet the wage increases.

“We cannot close the gender pay gap without confronting the historic undervaluation of work performed predominantly by women,” Minister for Women and Finance Katy Gallagher said in a statement.

“Australia’s gender pay gap is at a record low, and this is another significant step towards ensuring women are properly recognised and rewarded for their contribution.

“This move is also a clear signal to the community that this workforce and the support they provide our community is important and valued.”

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Employment Minister Amanda Rishworth said women workers had paid the price of their work being undervalued.

“This Fair Work Commission decision is helping to address decades of gender-based undervaluation and deliver better wages for workers in health, disability and community services,” she said.

“This is what closing the gender pay gap looks like in practice - recognising the value of women's work contributions and helping Australian workers earn more.”

More than 128,000 organisations will receive extra funding, the government said.

“Health, disability and community workers provide critical services to help Australians in time of need and they deserve to be paid fairly for their work,” Health Minister Mark Butler said.

“This investment will not only help retain existing workers, it will make this sector a more attractive career path to build a stronger workforce for the future.”

Social Services Minister Tanya Plibersek said fairer pay would make the community services sector stronger.

“Behind every community service is a dedicated worker helping someone through one of the hardest moments of their life,” she said.

“Whether it's supporting a woman escaping violence, helping a family facing homelessness, or making sure someone has a warm meal and somewhere to turn, these workers change lives every day.

“Fairer pay will support a stronger, more sustainable community sector and ensure Australians can continue to access the services they need when they need them most.”