Budget funds to meet record aged care wage rise ruling

More than 250,000 aged care workers are in for a record 15 per cent pay rise under a $11.3 billion boost in the federal budget. 

The Albanese government will on Thursday announce the funding to meet a Fair Work Commission ruling, that a 15 per cent wage hike for the sector's workers needs to come into effect in one hit from July.

The government argued that due to significant fiscal challenges, it should be allowed to space out the 15 per cent wage increase over two years, 10 per cent in 2023 and then 5 per cent more in mid-2024.

The unions heavily criticised the government for its plan.

The biggest ever pay rise for workers including registered nurses, head chefs and cooks, and home care workers is in response to recommendations made by the Royal Commission into Aged Care Quality and Safety, calling for wages for aged care staff be lifted.

A registered nurse on a level 2.3 award will pocket an extra $196.08 a week, adding up to more than $10,000 a year.

A personal care worker on a level 4 aged care award will take home $141.10 more a week, or more than $7300 a year.

The Australian National Aged Care Classification price, for residential care, will be increased to $243.10 from July, and is based on advice from the Independent Health and Aged Care Pricing Authority.

Treasurer Jim Chalmers said every worker deserved a fair day's pay for a fair day's work.

"For too long, those working in aged care have been asked to work harder for longer without enough reward but with this budget, that changes," he said.

"This investment recognises the incredible contribution that aged care workers make to our economy and community and will help to create a bigger incentive for young Australians looking for a rewarding career to pick aged care in the future."

Meanwhile, the government will set aside $1 million to the Constitution Education Fund Australia, and $475,000 to the Museum of Australian Democracy to deliver an information program for voters ahead of the Indigenous voice to parliament referendum later this year. 

The program will provide "neutral" and easy-to-understand information about the constitution and referendum processes.

Indigenous Australians Minister Linda Burney said considering the last referendum was held in 1999, it was crucial Australians had the facts to make an informed decision when casting their vote.

"Delivering this civics program will ensure all Australians can contribute respectfully and knowledgeably to the national conversation about the referendum before voting day," she said.