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FOCUS HR  |  IR July Update 2026
FOCUS HR  |  IR July Update 2026
SIGNIFICANT 
CASE LAW
SCHADS AWARD REVIEW AND REFORM (2026)
When: 1 October 2027  
The Fair Work Commission conducted a review 
of the SCHADS Award to address gender-based 
undervaluation and to improve clarity, fairness, and 
compliance in classification and wage structures. 
A decision has been published with 2 draft 
determinations relating to the classification structure.
Key Changes
Single Integrated Classification Structure:
•	Replaces Schedules B, C, E, and F with a unified 
structure covering all relevant sectors: Social 
and Community Services, Crisis Assistance and 
Supported Housing, and Home Care.
•	Simplifies and clarifies classification levels, making 
compliance more straightforward and reducing 
misclassification.
Recognition of Qualifications and Experience:
•	The new structure recognises both formal 
qualifications and equivalent experience (including 
‘lived experience’).
Removal of Annual Pay Increments:
•	Pay progression is now based on demonstrated 
competency and satisfactory performance. The 
review is triggered by 12 months of service, however 
it is not automatic annual increments.
Entry Levels:
•	Disability Support Workers: Entry at Level 2.2 in the 
new classification structure ($1248.50/week) for 
those with less than 12 months’ experience; progress 
to Level 3.1 after 12 months.
•	Social and Community Services workers: Entry at 
Level 3 ($1314.30/week) (currently Level B.2 in the 
Award).
Counsellors and Caseworkers:
•	Counselling work is included under the definition of 
Caseworker/Practitioner, with entry at Level 5 for 
diploma-qualified roles.
Progression for Part-Time/Casual Employees:
•	No requirement for full-time equivalent service. 
Progression is based on competency and 
performance, triggered by a qualifying period of 
continuous service
•	Where progression is dependent upon industry 
experience with a different employer, progression 
is subject to the employee providing reasonable 
evidence of such experience on employer request.
Pay Rates at Higher Levels:
•	Specific pay rates set for Levels 3.3, 4.1, 6.2, 6.3, and 
6.5, balancing the need to avoid employees going 
backwards and limiting employer cost increases.
What is not changing
Allowances:
•	Allowances tied to a percentage of the ‘standard 
rate’ are adjusted to maintain their current monetary 
value, avoiding unintended increases.
•	Clerical Employees & Family Day Care:
•	No change to coverage for clerical employees in this 
review; future applications may address this.
•	Family Day Care is still included in this Award despite 
suggestions it should move to the Children’s Services 
Award.
Implementation and Transition
Operative Date:
•	For employees under Schedule E (Home Care 
Disability), a 15% pay increase applies from 1 
October 2026 (this is a provisional view).
•	The remainder of the new structure will commence 
on 1 October 2027 with no phasing arrangement.
Practical Tips for Employers
1.	 Review the new Integrated Wages Structure 
and start mapping current roles/employees 
to the new structure to understand budget 
impacts. 
2.	 Identify potential individual employee 
changes and consider approach to 
communication.
3.	 Be ready to update HR infrastructure such 
as payroll, contract templates, increase 
letters, performance appraisals etc) ready for 
structural change from 1 October 2027.
4.	 Check wage rate updates on 1 October 2026.

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