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SCHADS Award Changes 2026: What NDIS Providers Need to Know
- Inspire Community Consultants
- Jun 2
- 2 min read
The Social, Community, Home Care and Disability Services (SCHADS) Award continues to undergo significant changes as part of ongoing Fair Work Commission reviews.
For NDIS providers, July 2026 is an important time to ensure payroll systems, rostering practices, employment contracts, and workforce management processes remain compliant.
1. Annual Wage Increase from 1 July 2026
As part of the Fair Work Commission's Annual Wage Review, minimum award wages under the SCHADS Award increased from the first full pay period commencing on or after 1 July 2026. Providers should ensure payroll systems have been updated to reflect the new minimum rates.
What providers should do:
Review employee classifications.
Update payroll systems.
Review salary packaging arrangements.
Ensure over-award payments continue to satisfy minimum obligations.
2. Major Sleepover Changes Commenced in June 2026
One of the most significant SCHADS Award changes relates to sleepover shifts.
The Fair Work Commission determined that a sleepover is no longer considered a break from work for the purposes of calculating certain award entitlements. These changes commenced from the first full pay period on or after 1 June 2026.
Key impacts include:
Changes to how ordinary hours are assessed.
Changes to overtime calculations.
Changes to break requirements between rostered shifts.
More complex penalty rate calculations around sleepover arrangements.
What providers should do:
Review all sleepover rostering arrangements.
Review payroll system configurations.
Audit employee pay calculations.
Train rostering and payroll staff on the new rules.
3. Increased Focus on Correct Classification
The Fair Work Commission continues to review SCHADS Award classification structures as part of the Gender-Based Undervaluation Review. Significant discussions are occurring regarding how employees are classified and paid across the disability, community services and home care sectors.
Although large-scale classification changes are still being considered, providers should ensure current classifications are appropriately aligned with actual duties performed.
Common risk areas:
Behaviour Support Practitioners.
Team Leaders.
Coordinators.
Practice Managers.
Allied Health Assistants.
Senior support roles performing higher-level functions.
4. Increased Compliance Expectations
The Fair Work Ombudsman continues to focus on:
Employee classification accuracy.
Overtime calculations.
Sleepover arrangements.
Broken shifts.
Allowances and penalty rates.
Record keeping obligations.
For NDIS providers, payroll compliance remains a significant risk area, particularly where complex rostering arrangements exist.
Recommended Actions:
✔ Conduct an internal SCHADS Award compliance review.
✔ Review employee classifications.
✔ Audit sleepover and overnight support arrangements.
✔ Ensure payroll systems reflect current award requirements.
✔ Seek specialist workplace relations advice where uncertainty exists.
Final Thoughts
The SCHADS Award remains one of Australia's most complex modern awards. With recent sleepover reforms, annual wage increases, and ongoing Fair Work Commission reviews, providers should proactively review their workforce arrangements to minimise compliance risks and avoid costly underpayment claims.
A proactive review now may save significant time, cost, and stress in the future.
Inspire Community Consultants
