Significant SCHADS Award changes: important for non-profits' forward-planning

The Fair Work Commission recently announced significant changes to classification structures and wage rates within the SCHADS Award. Arising from the broader review into gender-based undervaluation in care and community-sector work, these changes are likely to have a significant impact on many community and disability-sector organisations.

Importantly, most elements of the new framework are set to apply from 1 October 2027, so FY27 budgets may not need immediate adjustment. However, for many of our clients, this is not likely to be a simple payroll-rate update.

There may need to be re-grading of staff to the Award, and management of other aspects of the transition from a human resources (HR) and industrial relations(IR) perspective. The impacts of these changes will also need to be factored into FY28 budgeting, and in longer-term planning of service design and workforce decisions.

What’s in the detail?

For SCHADS-covered employers, the decision introduces major changes to classification structures and wage rates:

• From 1 October 2027:
  • Roles currently classified under the SCHADS schedules B, C, E and F, including for Crisis Accommodation and Home Care, are being replaced with a single integrated schedule of grades and rates. Affected roles will be re-classified based on years of experience/lived experience, or substantive role, as well as qualifications(with the emphasis on qualification watered down since the first draft of the reform).
  • The 2012 Social and Community Services (SACS) Equal Remuneration Order will be revoked, as it will become redundant - minimum rates of pay in the new classification structure will incorporate rates from the ERO.
    

• From 1 October 2026:
  • Home care disability workers (Schedule E to the SCHADS Award) are set to receive an earlier interim pay rise (of ~15%), however this is a preliminary decision, still subject to consultation.

Organisations will need to, with specialist HR and IR support, identify affected roles and understand current and future classifications. From there Purpose can support with modelling of cost impacts, and consider how these changes may affect strategy and sustainability.

We’re there to support clients in planning for these changes – to help you better understand the financial impacts, and inform your strategy and decision-making.

For more information see:

-       The full FWC decision

-       Handy analysis piece from NCOSS