In our June update, we flagged significant changes coming to the SCHADS Award classification structures and wage rates. Following the review into gender-based undervaluation in care and community-sector work, these changes will significantly impact community and disability-sector organisations.
Key headlines:
- From 1 October 2027, a new, integrated 10-level classification structure will replace Schedules B, C, E and F of the Award. This is called the Final Classification Structure (FCS).
- Pay protection (or ‘grandfathering’) rules apply - if an employee’s historical rate is higher than their new translated minimum, their current pay is protected and maintained.
Next steps for affected organisations:
Organisations with SCHADS employees have been advised to start preparing for implementation of the new structure on 1 October 2027. This includes:
- Mapping all current SCHADS-covered roles into the new structure - the FWC translation tables are available here
- Flagging complex cases needing specialist HR, industrial relations or legal advice
- Planning staff communications activity
- Modelling budget impacts and payroll system changes – see below for how Purpose will help with these aspects
How will Purpose help clients?
We’ll support clients on these financial elements:
- Modelling the FY28 payroll, funding, pricing and cash-flow implications. Once classifications have been confirmed, we can help model the financial impact and assess sustainability risks. Purpose will discuss these changes with affected clients before FY28 budget / reforecast preparation period. We encourage clients to complete role mapping by March 2027, so we have enough time to work through these details with you and incorporate them into budgets and reforecasts.
- Reviewing whether payroll systems will require new classifications, pay points or enterprise-agreement configurations. Purpose will assist with this where we provide payroll services to clients.
