SCHADS Award Overhaul: What Employers Need to Know

| September 10, 2026

The Fair Work Commission (Commission) has confirmed significant changes to the Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award). The changes follow the Commission’s review into gender-based undervaluation in the sector. 

In simple terms, the Commission found that parts of the SCHADS Award did not properly recognise the value of work performed in some female-dominated roles. It also found that the current classification system is difficult to use and can lead to mistakes, disputes and underpayments. 

For employers, this is not just a wage update. It will require a careful review of how employees are classified, what work they actually perform, and how their qualifications, experience and skills fit within the new Award structure. 

Dates of Effect 

Of immediate note is the date of effect for the changes described in this article. They are: 

• 1 October 2026 – 15% increase across all levels 
• 1 October 2027 – remaining % increase to bring rates in line with Final Classification Structure 

A single classification structure 

One of the biggest changes is that the current separate classification schedules will be replaced with one new classification structure. The new structure will cover six work streams: 

• administrative and operational support work; 
• social and community services work; 
• crisis assistance and supported housing work; 
• disability support work; 
• home care aged work; and 
• home care disability work. 

The aim is to make the classification system clearer and more consistent. Rather than relying on several different schedules with detailed descriptors, the new structure focuses on the type of work performed, the employee’s relevant experience, their qualifications, and any equivalent skills or knowledge they bring to the role. 

This is important because the new structure recognises that employees can develop relevant skills in different ways. A person may have formal qualifications, but they may also have equivalent skills from training, industry experience or lived experience. However, the qualification or experience still needs to be relevant to the duties of the role. Holding a qualification by itself will not automatically place an employee at a higher level. 

New minimum rates and employee translation 

The new minimum rates are based on work value and will also include the rates currently provided through the Equal Remuneration Order. For some employees, this may mean no change to their minimum rate. For others, particularly some disability support workers, the increase may be significant. 

The Commission has proposed translation arrangements to move employees from the current classifications into the new structure. This will not always be a simple one-for-one move. Employers will need to look at the employee’s current role, duties, qualifications and experience to work out where they fit under the new framework. 

Employers should also be careful not to assume that movement to a lower-numbered level means an employee’s pay can be reduced. If an employee’s existing Award rate is higher than the new translated rate, retained-rate arrangements will preserve the higher rate. 

Equal Remuneration Order to be revoked 

The Equal Remuneration Order will be revoked when the new classification structure starts. This is because the relevant rates under the Order have been built into the new minimum wages. In practice, employers will need to move away from applying the Order separately and instead apply the new Award structure and rates. 

When do the changes commence? 

The new classification structure is scheduled to commence on 1 October 2027. At that time, the remaining wage changes are expected to take effect without further phasing. 

There may be an earlier change for employees currently classified under Schedule E, which covers home care employees performing disability care work. The Commission has expressed a provisional view that many of these employees should receive an initial increase from the first full pay period on or after 1 October 2026. Employers with Schedule E employees should therefore start modelling the impact now, rather than waiting until 2027. 

What should employers do now? 

Employers should treat this as a classification and compliance project, not just a payroll update. Useful steps include: 

• Auditing current award coverage and classifications; 
• Reviewing position descriptions against the six new work streams; 
• Recording the qualifications, experience and equivalent competencies relied on for each classification; 
• Mapping employees against the Commission’s translation tables; 
• Identifying employees who may require retained-rate arrangements; 
• Modelling payroll and funding impacts, particularly for Schedule E employees; and 
• Reviewing enterprise agreement base rates against the applicable new award classifications. 

The main risk is leaving this too late or treating it as a simple increase to pay rates. Employers will need to be able to explain, and preferably document, why each employee has been placed at a particular level under the new structure. 

Preparing for the SCHADS Award Changes 

The new classification structure will require employers to carefully review how existing roles translate into the new framework. 

IRiQ Law can assist employers to map Award positions to the new classifications, review Award coverage and classifications, and identify potential compliance risks ahead of the changes. 

If you need assistance preparing for the SCHADS Award changes, contact IRiQ Law.