SCHADS Award

NDIS price guide vs SCHADS Award: the margin squeeze

Every NDIS provider faces the same arithmetic problem. The NDIS price guide sets a cap on what you can charge. The SCHADS Award sets a floor on what you must pay. The gap between those two numbers is where your margin lives — and that gap has been shrinking.

The NDIS weekday rate

Support item: Assistance with Daily Activities (Standard, Weekday Daytime)
Line item: 01_011_0107_1_1
Price limit (2025-26, effective 1 July 2025): $70.23/hr

This is the maximum amount a registered provider can charge a participant for standard daily activity support during a weekday. It is a cap, not a guaranteed payment. The 2025-26 NDIS pricing update increased standard support prices by approximately 3.95%, tracking the combination of the SCHADS wage increase (3.5%) and the superannuation guarantee rise (11.5% from 1 July 2025).

The actual SCHADS cost: Level 3.1 casual on a weekday

A Level 3.1 casual disability support worker is the most common worker type in Australian disability care — a qualified, experienced worker who works without direct supervision.

On-costPer hour
Base casual rate$48.31
Superannuation (11.5%)$5.56
Workers compensation (est. 2.5%)$1.21
Payroll tax (est. 4.85%, threshold dependent)$2.34
Leave loading proxy (casual, absorbed in loading)$0.00
Total employment cost$57.42/hr

Gross margin at $70.23 NDIS rate: $70.23 – $57.42 = $12.81/hr (18.2%)

That $12.81 must cover worker travel time, administration, management, software, insurance, rent, training, compliance, and profit. For many smaller providers, this is a very thin margin for standard weekday shifts. Note: workers compensation and payroll tax rates vary by state — figures above are indicative for a Victorian provider above the payroll tax threshold.

How the gap widens on weekends and public holidays

The NDIS pricing structure provides higher rates for weekend and public holiday support, but they do not fully offset the SCHADS penalty rate increases.

Saturday

NDIS rate: $98.37/hr (01_015_0107_1_1)

SCHADS cost: Level 3.1 casual — 150% × $38.65 × 1.25 = $72.47/hr

Employment cost: $85.88/hr (after on-costs)

Gross margin: $12.49/hr (12.7%)

Sunday

NDIS rate: $111.63/hr (01_016_0107_1_1)

SCHADS cost: Level 3.1 casual — 200% × $38.65 × 1.25 = $96.63/hr

Employment cost: $114.50/hr (after on-costs)

Gross margin: –$2.87/hr

Public Holiday

NDIS rate: $139.54/hr (01_017_0107_1_1)

SCHADS cost: Level 3.1 casual — 275% = $106.29/hr

Employment cost: $125.95/hr (after on-costs)

Gross margin: $13.59/hr (9.7%)

Sunday shifts at Level 3.1 casual can operate at a loss under NDIS pricing, factoring in full on-costs. This is why many providers restructure Sunday rosters to use permanent part-time workers — whose Sunday penalty rate (200% of the lower base) produces a slightly different outcome.

Summary: margin by day type

Day typeNDIS rateGross margin%
Weekday$70.23$12.8118.2%
Saturday$98.37$12.4912.7%
Sunday$111.63–$2.87–2.6%
Public Holiday$139.54$13.599.7%

Level 3.1 casual, Victorian on-costs, indicative NDIS rates (2025-26). The margin does not scale proportionally with the NDIS loading.

What providers can do

1. Efficient rostering

Every unnecessary gap in a casual worker's day costs money. A 3-hour gap between clients that is not genuine travel time triggers two separate minimum engagements. Tightly sequenced rosters reduce the minimum-engagement obligations you incur and the travel time you pay without recovering.

2. Reduce travel time

Travel between clients is paid time under SCHADS and is usually unrecoverable in full from NDIS funding. Clustering clients geographically and scheduling workers in logical routes rather than across a sprawling area reduces paid travel that eats into your margin.

3. Correct classification

Over-classification increases your base rate unnecessarily. A worker classified at Level 3 when their actual duties are Level 2 costs approximately $7–$8/hr more than required, compounded across all penalty rate multipliers. Audit your classification decisions annually.

4. Mix employment types deliberately

Permanent part-time workers with agreed hours can be more cost-effective on high-penalty days (weekends, public holidays) because their base rate is lower than casual and the penalty rate multiplies that lower base. Casuals are flexible but their 25% loading is embedded regardless of day type.

5. Price correctly in service agreements

Ensure your NDIS service agreements with participants capture the full pricing structure, including weekend and public holiday rates, travel allowances, and any other allowable charges. Under-quoting locks you into a rate that may not cover your actual costs as penalty rates compound.

6. Know your real costs before you roster

Providers who roster without visibility of shift costs often discover the financial impact only at payroll. A scheduling tool that shows you the loaded cost of each shift before it is confirmed lets you make better rostering decisions in real time.

A note on NDIS pricing reviews

NDIS pricing is reviewed annually by the NDIA. The 2025-26 update was informed by the Fair Work Commission's Annual Wage Review outcome and the superannuation guarantee increase.

Providers who are routinely running negative margins on specific shift types should document this clearly. The NDIA's pricing consultation processes allow providers to submit evidence of cost pressures. If your Sunday or weekend margins are consistently negative, that evidence matters for future pricing submissions.

See your real shift costs before you roster

Teiro calculates the loaded cost of every shift at the point of rostering, across all day types and employment classifications, so you can see your margin before you confirm the schedule.