Update for 1 July 2026
SCHADS Award minimum rates rose 4.75% in the Fair Work Commission Annual Wage Review, effective from the first full pay period on or after 1 July 2026. Every rate, penalty, and allowance on this page reflects the new figures.
Teiro keeps SCHADS rates current automatically, so your rosters, quotes, and pay never run on last year’s figures.
The Fair Work Commission decision
On 2 June 2026, the Fair Work Commission Expert Panel handed down its Annual Wage Review decision for 2026-27. All modern award minimum rates — including all classification levels under the SCHADS Award (MA000100) — increased by 4.75%, effective from the first full pay period on or after 1 July 2026.
- The 4.75% increase applies to every classification level in the SCHADS Award — Level 1 through Level 8.
- Both the Social and Community Services (SACS) stream and the Home Care stream increased by the same percentage.
- It is applied to the base rate before casual loading or penalty rate multipliers are added.
Regulatory reference
Fair Work Act 2009, s.285 (Annual Wage Reviews). SCHADS Award MA000100 (Social, Community, Home Care and Disability Services Industry Award) — verify current clause numbers against the consolidated award at fwc.gov.au, as SCHADS was restructured in 2024.
When do the new rates actually apply
The new rates are not automatic from 1 July. They apply from the first full pay period that starts on or after 1 July 2026.
For weekly payroll cycles, the new rate typically applies from 1 July or from the Monday of the first week starting after 1 July, depending on your pay period structure. For fortnightly payroll cycles, the new rate may not apply until 7 July or even 13 July, depending on where your pay period falls.
| Pay cycle | Example pay period start | New rate applies from |
|---|---|---|
| Weekly | Monday 29 June | Monday 6 July |
| Weekly | Tuesday 1 July | Tuesday 1 July |
| Fortnightly | Monday 22 June | Monday 6 July |
| Fortnightly | Monday 29 June | Monday 13 July |
Examples only. Check your actual pay period calendar. Paying the old rate beyond the first applicable pay period is an underpayment, even if the decision was only published a few weeks earlier.
New SACS stream rates from 1 July 2026
The table below covers the Social and Community Services (SACS) stream — the scale that applies to most support coordinators, case managers, and disability support workers at most providers. Casual = base × 1.25. Indicative annual = base × 38 hrs × 52 weeks.
| Level | Pay point | Permanent/hr | Casual/hr |
|---|---|---|---|
| Level 1 | PP1 | $27.55 | $34.44 |
| Level 1 | PP2 | $28.44 | $35.55 |
| Level 1 | PP3 | $29.46 | $36.83 |
| Level 2 | PP1 | $36.22 | $45.28 |
| Level 2 | PP2 | $37.36 | $46.70 |
| Level 2 | PP3 | $38.50 | $48.13 |
| Level 2 | PP4 | $39.52 | $49.40 |
| Level 3 | PP1 | $40.49 | $50.61 |
| Level 3 | PP2 | $41.66 | $52.08 |
| Level 3 | PP3 | $42.55 | $53.19 |
| Level 3 | PP4 | $43.42 | $54.28 |
| Level 4 | PP1 | $46.70 | $58.38 |
| Level 4 | PP2 | $47.92 | $59.90 |
| Level 4 | PP3 | $49.16 | $61.45 |
| Level 4 | PP4 | $50.25 | $62.81 |
| Level 5 | PP1 | $53.42 | $66.78 |
| Level 5 | PP2 | $54.57 | $68.21 |
| Level 5 | PP3 | $55.84 | $69.80 |
SACS (Social and Community Services) stream only. Levels 6–8 not shown — pull those classifications directly from the FWO MA000100 pay guide published 24 June 2026 at fairwork.gov.au. The Home Care stream uses a different (lower) dollar scale at the same level numbers — do not mix the two.
Rates computed by applying +4.75% (×1.0475) to confirmed 2025-26 SACS bases, rounded to the cent (half-up). Cross-check against the official FWO pay guide before processing payroll.
Recent Annual Wage Review outcomes
| Financial year | Increase |
|---|---|
| 2022-23 | 5.75% |
| 2023-24 | 3.75% |
| 2024-25 | 3.5% |
| 2025-26 | 3.5% |
| 2026-27 | 4.75% |
Source: Fair Work Commission Annual Wage Review decisions 2022-23 through 2026-27.
Payday Super: a new obligation from 1 July 2026
Separate from the wage increase, Payday Super legislation requires superannuation to be paid within 7 business days of each payday from 1 July 2026, replacing the previous quarterly schedule. The rate remains 12%. Confirm the commencement date and your specific obligations with your payroll provider or accountant.
For providers on fortnightly payroll, this means super is now due every two weeks, not once per quarter. Confirm your clearing house or payroll platform is configured to send contributions on the new schedule before the first pay run in July.
The NDIS pricing interaction: the provider squeeze
The NDIS pricing schedule is reviewed annually by the NDIA, with changes typically effective 1 July. The NDIA and the FWC operate independently — the NDIS price limit movement does not automatically equal the Award increase.
When the Award increase exceeds the NDIS price limit increase for a support category, providers absorb the difference. This is the structural squeeze that disability support providers have faced in several recent financial years.
What to do: Check the current NDIS Pricing Arrangements 2026-27 (published separately by the NDIA). For any support category where the 4.75% labour cost increase outpaces the NDIS price limit movement, calculate the per-hour margin impact and update your financial modelling before committing to service agreement renewals.
This is also the point at which to review any SIL or community access quotes in progress, since cost models built on 2025-26 rates will be understated.
7-step provider checklist
Work through this checklist now. The decision was handed down 2 June 2026, leaving approximately four weeks before the new rates apply.
Update payroll system pay rates
Update every SCHADS classification level your organisation uses: base rates, casual loading amounts, and allowances. If your payroll system applies penalty rates as multipliers, confirm the multiplier is being applied to the new base rate. Cached rate tables are a common source of underpayment after a July update.
Update all SCHADS allowances
Award allowances are indexed in line with the wage review and must be updated at the same time as base rates. Check broken shift allowance (now $21.81 for one unpaid break, $28.87 for two), sleepover allowance (now $62.87/night), on-call allowance, first aid allowance, and telephone allowance. Vehicle allowance ($0.99/km) is indexed separately — confirm the current per-km rate in the FWO MA000100 pay guide.
Confirm superannuation rate and Payday Super
The Superannuation Guarantee remains at 12% — no change for 2026-27. Payday Super legislation requires super to be paid within 7 business days of each payday from 1 July 2026, replacing the previous quarterly schedule. Confirm the commencement date and your obligations with your payroll provider or accountant before your first July pay run.
Recalculate NDIS price-limit headroom
NDIS Pricing Arrangements are reviewed separately by the NDIA. The 2026-27 price limits are not simply the old limits plus 4.75%. For any support category where the Award increase outpaces the NDIS price movement, your margin on that category will compress. Check the current NDIS Pricing Arrangements 2026-27 rather than assuming they track the Award increase.
Review enterprise agreements against the SCHADS floor
If your organisation operates under an Enterprise Agreement, EA rates must remain above the SCHADS Award floor at every classification level and for every entitlement type (the Better Off Overall Test). After an Award increase, re-check that your EA still passes the BOOT. If it does not, you must pay whichever is higher.
Communicate pay changes to workers in writing
Fair Work Act 2009 requires employers to notify employees of changes to their pay. Provide written confirmation of the new rate before the first pay period at the new rate. This is also good practice for transparency and avoids worker queries about why their pay changed.
Update quotes, service agreements, and cost models
Any service agreement, SIL quote, or internal cost model built on 2025-26 labour rates should be updated to reflect the new base rates and allowances. If your agreements allow price variations linked to Award changes, issue updated schedules to participants. Where agreements specify a fixed rate, assess whether the new Award minimum creates a gap.
The rate change is not automatic in payroll software
Some payroll platforms claim to apply Award updates automatically. Do not assume this will happen correctly without verification. Award updates require a system provider to release and deploy a rate update, your organisation to apply it, and your local pay rate configuration to be aligned with the update. Each of these steps can fail silently.
After 1 July, run a spot check: pull the base rate for at least one worker at each classification level you use and confirm the rate in your payroll system matches the published SCHADS Pay Guide (MA000100, effective 1 July 2026). If there is a discrepancy, correct it immediately and back-pay any shortfall from the first applicable pay period.
Underpayment risk: Paying below the Award minimum is a contravention of the Fair Work Act regardless of whether the error was caused by a software issue. The obligation to pay the correct rate rests with the employer. The Fair Work Ombudsman can order back-payment plus interest and penalties.