If you employ under the SCHADS award, you've probably seen a list of changes going around. Some versions present all of them as settled fact.
They're not. Two have already happened and are law right now. Two are the Fair Work Commission's provisional view, with draft determinations still out. If you change someone's pay based on the second group, you're acting on a proposal.
Here's which is which.
The dates at a glance
1 June 2026
Sleepovers changed.
Already law
1 September 2026
The vehicle allowance went up, from $1.01 to $1.05 per kilometre.
Already law
28 February 2027
The temporary vehicle allowance increase ends.
Already law
1 October 2026
The increase for home care disability workers under Schedule E.
Still provisional
1 October 2027
The classification overhaul is commonly reported as commencing.
Still provisional
General information only. Read the full disclaimer.
Already law: sleepovers changed on 1 June 2026
Work performed immediately before and immediately after a sleepover is now treated as part of the same shift. The sleepover itself no longer counts as a break between those two periods of work.
This followed a Federal Court ruling that unsettled the accepted reading of the sleepover clause. The Fair Work Commission then decided the substantive change late last year and finalised the exact wording earlier this year. It took effect from the first full pay period on or after 1 June 2026.
Employers can also agree in writing with an employee to extend ordinary hours around a sleepover to 12 before overtime applies, up from the previous 10-hour threshold. That extension isn't automatic. It only applies where it's been agreed.
Why it matters: if your rostering system still treats the hours either side of a sleepover as two separate shifts, your overtime, broken shift allowance and minimum engagement calculations may have been wrong since winter, unless you've specifically agreed the 12-hour extension with affected staff. That's a pay setup problem, and possibly a back pay one.
Already law: the vehicle allowance went up on 1 September 2026
From the first full pay period on or after 1 September 2026, the vehicle allowance rose from $1.01 to $1.05 per kilometre under both the SCHADS Award and the Aged Care Award.
It's temporary. The increase runs for six months and ends on 28 February 2027, reverting to the previous rate unless the Commission varies it again. It came about after a fuel price shock, and the Commission increased the rate for these two awards only.
Two things to do. Update your pay runs and your reimbursement process now. And diary the end date, because rolling a temporary rate back is the step people forget.
Still provisional: the increase for home care disability workers
You'll see this written as a 15 per cent increase for Schedule E workers from 1 October 2026. That's what the Commission proposed. It is not yet what the Commission has determined.
Earlier this year, the Commission expressed a provisional view on an interim increase of around 15 per cent for employees under Schedule E doing disability work in home settings, and published draft determinations. Parties had 28 days to make submissions.
Two things follow. The percentage may move, partly because the draft determinations may be adjusted for this year's Annual Wage Review outcome. And so may the date.
What to do: budget for it, don't pay it. Model the cost at around 15 per cent so the number doesn't surprise your board or your funding conversations. Then wait for the final determination before you change anyone's rate.
Still provisional: the classification overhaul
The same review replaces the classification structures in Schedules B, C, E and F with a single new structure. Ten levels, six work streams across three sectors, built on qualifications and experience rather than the current task-based descriptions. Lived experience is recognised alongside formal qualifications.
Progression changes too. It becomes tied to competency rather than an automatic annual increment.
This is commonly reported as commencing 1 October 2027. That date is contingent too, and commentary at the time noted it could shift. Some detail on how existing higher rates are protected and how progression applies to part-time and casual staff is still being finalised, so check the final determination before you rely on it in advice to clients.
What to do between now and then
Check your last sleepover roster. Pull a pay period that included a sleepover and see how your system counted the hours either side, and whether any 12-hour extension was properly agreed in writing. If it split the shift without that agreement, you have a configuration problem to fix and back pay to work out.
Update the vehicle allowance, then diary 28 February 2027. The rate change is easy. Remembering to roll it back is the part that gets missed.
Model the Schedule E increase, don't apply it. Around 15 per cent, for budgeting and funding conversations only, until the final determination issues.
Start collecting classification evidence now. For each person: the qualifications they actually hold, how long they've been doing the work, and what they genuinely do day to day. If your position descriptions were written for whoever had the job three years ago, they won't tell you anything useful.
Don't change anyone's pay on a provisional date. Wait for the final determination. A date reported in a newsletter is not a date in the award.
Where to check the latest position
For the latest confirmed position, check the Fair Work Commission's gender-based undervaluation priority awards review or the Fair Work Ombudsman's summary page.
Current as at 1 September 2026. This is general information about award changes, not advice about your situation. If you want a hand working out what applies to your team, that's exactly the sort of thing we do.
Book a free consultation, or get in touch at hello@happyhumans.com.au
Disclaimer
This article is general information only. It doesn't take into account your specific circumstances and isn't a substitute for professional legal or HR advice. We make every effort to keep our Insights accurate and current, but award rates and Fair Work Commission decisions can change, and we can't guarantee this information is complete or up to date at the time you're reading it. Nothing on this page should be relied on as legal advice, and nothing here forms part of a professional engagement with happy humans.