Temporary increase to motor vehicle allowance: payroll system updates from 1 Sept

FairWork has announced a temporary increase to the motor vehicle allowance for the SCHADS Award. This change has been put in place to maintain a fair minimum safety net for employees, in response to increases in fuel costs.

Key details:

• The allowance will increase from $1.01 per kilometre to $1.05 per kilometre
• This change is effective from the first full pay period on or after 1 September 2026
• It applies for a 6-month period only, ending on 28 February 2027

Where Purpose manages our clients’ payroll: we’re making the necessary changes in payroll systems.

Where clients manage payroll in-house: please ensure you make the necessary changes for the temporary period only. New rates will need to revert to the previous rate from 1st March 2027.

For more details see the FairWork website