The SCHADS Reckoning What the June 2026 Fair Work Commission Decision Means for NDIS Providers
“This is the most significant structural change to the SCHADS Award in more than a decade.”
On 1 June 2026, the Fair Work Commission handed down a decision that will reshape the pay and conditions of more than 250,000 workers across Australia’s disability, home care and community services sectors.
For NDIS providers, this is not a distant regulatory event to monitor from the sidelines. It is a significant financial and operational challenge that is already underway.
Yet, based on what we are hearing across the sector, many provider boards and leadership teams have not fully modelled what these changes could mean for workforce costs, compliance obligations and long-term sustainability.
The window to prepare before the October 2026 implementation date is closing faster than many organisations realise.
This is the most significant structural change to the SCHADS Award in more than a decade. The time to understand its impact is now, not when implementation arrives.
What Just Changed — And Why
The 1 June decision concludes a two-year gender-based undervaluation review of the Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS).
The Commission found that the existing classification structure and wage rates had been affected by longstanding gender-based undervaluation and were no longer fit for purpose.
Three major changes will occur:
• A new integrated classification structure will replace the existing multi-stream arrangement across Schedules B, C, E and F. • Minimum wage rates will be reset to address identified undervaluation. • The Equal Remuneration Order (ERO) will be removed to avoid duplication with the new unified rates.
This is not a technical adjustment — it is a fundamental restructuring of the SCHADS Award.
The Home Care–Disability Gap
Two SCHADS streams have long been relevant to NDIS providers: the Social and Community Services (SACS) stream and the Home Care – Disability Care stream (Schedule E).
Both often covered similar disability support work — but at materially different pay rates.
Before the June 2026 decision:
• SACS Level 2: $34.58/hour • Schedule E Level 2: $27.55/hour
The difference existed because SACS rates incorporated the 23% ERO uplift.
The Commission’s response is a unified classification structure designed to remove ambiguity between disability support and home care classifications.
The 15% Interim Increase: What It Means in Practice
Workers currently classified under Schedule E will receive an interim 15% pay increase from 1 October 2026.
This is not the final outcome — it is a step toward parity while the final structure is developed ahead of October 2027.
Providers will face this increase alongside:
• The 4.75% Annual Wage Review increase (1 July 2026) • Superannuation rising to 12% • Workforce shortages • Margin pressure • Uncertainty around future NDIS pricing
The NDIA’s pricing response remains unknown.
Providers should avoid assuming that pricing adjustments will automatically offset increased wage costs.
October 2027: The Larger Structural Change
From 1 October 2027:
• All classification schedules will be replaced by a single structure • The ERO will cease • Progression will be linked to performance assessment
Providers will need to:
• Reclassify their workforce • Map employees into the new structure • Manage pay protection • Update payroll systems • Implement documented performance processes
Transitions of this scale require planning well ahead of time.
The 35% Work Value Claim
On 10 June 2026, the Australian Services Union recommenced its work value claim seeking a 35% wage increase for community and disability services workers.
A full 35% increase in one determination appears unlikely. A staged outcome over multiple years is more realistic.
But the direction is clear: workforce costs are continuing to rise, and providers should plan accordingly.
What Providers Should Be Doing Now
The organisations most likely to navigate this period successfully will not be those waiting for certainty — but those acting on what is already known.
1. Review workforce classifications
Assess whether Schedule E classifications remain appropriate and defensible.
2. Model the October 2026 impact
Model the 15% increase against margins, pricing assumptions and workforce costs.
3. Begin workforce mapping
Prepare for the October 2027 transition and understand how employees will translate.
4. Prepare payroll and performance systems
Performance-based progression requires documented assessment processes.
5. Monitor the work value claim
Regardless of the outcome, workforce costs are increasing.
The Key Takeaway
The SCHADS changes are already underway.
The question is not whether these changes will affect your organisation — they will.
The question is whether you are preparing for what has already been decided, or waiting until financial and operational pressures force reactive decisions.
Organisations that model scenarios early and understand their workforce costs will be in a far stronger position than those that delay.
The time to prepare is now.
About the Author
Jeanette Larsen is a respected disability sector leader with deep expertise in SCHADS, workforce strategy, NDIS operations and provider sustainability. With a background spanning finance, HR, business leadership and operational management, she brings a clear, grounded understanding of how policy, awards and workforce pressures play out in real organisations. Jeanette writes about SCHADS, workforce design, governance and the practical realities facing disability providers navigating complexity, compliance and change.
Disclaimer: This article reflects general insights and sector commentary. It is not legal or industrial relations advice. Organisations should seek independent guidance before making decisions about SCHADS, workforce arrangements or compliance.