SCHADS Award Changes: What NFP Employers Need to Know

The Fair Work Commission has released its provisional decision in the Gender-Based Undervaluation—Priority Awards Review for the SCHADS Award, proposing one of the most significant changes to classification structures and minimum wages in the Award's history.

The Fair Work Commission has released its provisional decision in the Gender-Based Undervaluation—Priority Awards Review for the Social, Community, Home Care and Disability Services (SCHADS) Award 2010 [(2026) FWCFB 137], proposing one of the most significant changes to classification structures and minimum wages in the Award’s history.

The Fair Work Commission (FWC) Expert Panel examined whether classifications and minimum wages under the Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award) had been historically undervalued because the work is predominantly performed by women.

The FWC concluded that significant gender-based undervaluation existed and that the Award required substantial changes to properly recognise the value, complexity and responsibility of the work.

Once confirmed, the changes will affect thousands of employers and employees across Australia’s community services, disability, home care, social and welfare services.

While the Fair Work Commission (FWC) is yet to issue its final decision, employers should begin understanding the proposed reforms and consider how they may impact their workforce.

Here’s what Not for Profit employers need to know, and what happens next.

Why this matters?

The FWC Expert Panel concluded that many existing SCHADS Award classifications no longer reflect the modern nature of work performed across the community services sector.

It found that roles have evolved considerably over time, with employees now exercising greater professional judgement, autonomy and accountability, while managing increasingly complex responsibilities including trauma-informed practice, behavioural support, safeguarding obligations, multidisciplinary collaboration and regulatory compliance.

Importantly, the FWC Expert Panel also found that the historical undervaluation of work performed predominantly by women has contributed to minimum award wages that no longer appropriately recognise the value of this work.

Key changes at a glance

1. Existing classifications no longer reflect modern work

The FWC found that many SCHADS Award classifications were outdated and failed to recognise:

  • Increased professional judgement.
  • Higher levels of autonomy.
  • Trauma-informed practice.
  • Complex behavioural support.
  • Safeguarding responsibilities.
  • Regulatory and documentation requirements.
  • Multidisciplinary teamwork.
  • Greater accountability for client outcomes.

These changes in work value had occurred over many years without being fully recognised in award wages.

2. Gender-based undervaluation was a major cause of low wages

The Expert Panel found that the low pay in the sector was not explained simply by market forces but reflected the historical undervaluation of ‘caring’ work, which has traditionally been performed by females.

The FWC relied on the Fair Work Act’s new work value provisions introduced in 2022, which specifically allow gender-based undervaluation to be considered when setting minimum wages.

3. A new classification structure

One of the largest reforms is the current SCHADS Award classification schedules would be replaced with a single integrated classification framework designed to:

  • Better reflect modern roles and responsibilities,
  • Provide clearer distinctions between classifications, skill and responsibility levels,
  • Align employees more consistently across community services, disability services and home care; and,
  • Provides clearer career progression.
4. Changes to minimum award wages

The Commission has proposed significant increases to minimum award wages across many new classifications.

The increases vary depending on the degree of historical undervaluation identified for each role, with implementation expected to be phased to reduce disruption for employers and government-funded services.

5. Greater recognition of disability support workers

The proposed framework places greater emphasis on the complexity of contemporary disability support work, recognising responsibilities such as:

  • Greater responsibility for participant safety and wellbeing.
  • Behavioural support,
  • Restrictive practices,
  • Medication assistance; and,
  • Person-centred support as higher-value work than previously reflected.

It also addresses long-standing classification anomalies affecting some disability support workers.

What employers should do now

Although the decision is provisional, employers should begin preparing by:

  • Reviewing employee classifications and policies against the new structure.
  • Identifying employees who may transition to new classifications.
  • Planning for payroll and HR systems updates.
  • Reviewing and planning to implement the new minimum pay rates according to the FWC’s timetable.

Early preparation will help minimise organisational disruption once the FWC confirms its final decision.

What happens next?

The Fair Work Commission’s decision remains provisional, with further determinations expected as part of its broader Gender-Based Undervaluation Review before the new classification structure and implementation timetable are finalised.

Amplify Alliance’s Workplace Relations team is continuing to monitor the Fair Work Commission proceedings and will provide Members with further guidance as further information becomes available.

For organisations wanting a more detailed analysis, our Workplace Relations team has prepared a comprehensive overview of the proposed classification framework, transition arrangements and legal implications.

Organisational Support

If you’re unsure how the proposed changes may affect your organisation, Amplify Alliance Members can contact our Workplace Relations team for tailored advice and support. 

Gain direct access to specialist HR, workplace and industrial relations expertise to support your people, remain compliant and reduce organisational risk as a Member of Amplify Alliance Australia.

Enquire about membership today by calling 1800 331 915 or clicking here to join now.

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