The Fair Work Commission has confirmed major changes to the SCHADS Award, bringing some of the most significant workforce reforms the disability sector has seen in years.
For NDIS providers, these changes will affect how some employees are classified, what they are paid, and how workforce costs are managed in the future. While most changes won’t take effect until 2027, providers should start planning now to avoid surprises later.
Why These Changes Matter
For most NDIS providers, wages are the largest operating expense. The SCHADS Award changes are designed to better recognise the skills, experience and responsibilities of workers across the community and disability sectors while creating a simpler and more consistent classification structure.
Depending on your workforce, the changes could result in:
- Higher wage costs
- Changes to employee classifications
- Updates to payroll and HR systems
- Additional compliance requirements
Providers that deliver in-home and community-based disability supports are likely to feel the greatest impact immediately.
What’s Changing?
The reforms include:
- A new award-wide classification structure designed to simplify employee classification and reduce inconsistencies across sectors.
- Updates classification definitions, including a formal definition of “disability support work”, providing greater clarity regarding the nature of these roles within the broader social and community services workforce.
- Revised pay rates across a range of SCHADS Award classifications.
- New pay point progression rules and transition arrangements for existing employees moving to the new classification structure.
- Greater recognition of qualifications, equivalent work experience and relevant lived experience when determining employee classifications.
Key Dates to Know
1 October 2026: Schedule E Wage Increases
The first major change arrives on 1 October 2026. Employees covered by Schedule E (Home Care Employees – Disability Care) will receive a minimum wage increase of approximately 15%, bringing their pay rates in line with the aged care home care workforce.
You can view the Fair Work Commission’s Schedule E changes through the Fair Work Website.
This increase is particularly relevant for providers delivering:
- In-home disability supports
- Personal care services
- Community access supports
- Individualised support programs
If your organisation employs disability support workers in participants’ homes, now is a good time to review whether any employees fall under Schedule E and assess the financial impact of the wage increases.
1 October 2027: New Classification System Begins
From 1 October 2027, the existing classification structures contained within Schedules B, C, E and F will be replaced with a new integrated classification system. This will require providers to:
- Review employee classifications
- Apply new classification definitions
- Implement revised progression rules
- Transition employees to the new pay structure
What Should NDIS Providers Be Doing Now?
NDIS providers should assess the financial, operational and compliance implications of the SCHADS Award reforms and consider the following actions ahead of the implementation dates.
Before October 2026
Review Schedule E coverage
Identify whether any employees are currently covered by Schedule E and model the expected wage increases as part of your budget and workforce planning.
Review in-home support arrangements
If you provide supports in participants’ homes, review employee duties and classifications to ensure workers are correctly classified. Where there is uncertainty, consider seeking specialist workplace relations or HR advice.
Evaluate payroll and HR systems
Make sure your systems can accurately track, employee classifications, anniversary dates, pay point progression and award changes. Good record keeping will be essential as the new arrangements are introduced.
Before October 2027
Review workforce classifications
The new classification framework provides an opportunity to review positions across your organisation.
- When assessing classifications, consider:
- Qualifications
- Experience
- Level of responsibility
- Supervisory duties
- Specialist skills and functions
Correct classification will be important for both compliance and managing the risk of employee underpayments.
Review enterprise agreements
If your organisation operates under an enterprise agreement, consider how the SCHADS Award changes may affect future bargaining strategies or agreement updates.
Update financial forecasts
With labour costs expected to increase for many providers, now is the time to revisit workforce budgets and long-term forecasting. While future NDIS pricing decisions may take some of these costs into account, providers should avoid assuming that all increased employment costs will automatically be funded.
Looking Ahead
The SCHADS Award reforms are a significant change for the disability sector, but there is still time to prepare.
Providers that start reviewing classifications, workforce costs and payroll systems now will be better placed to manage the transition, maintain compliance, and continue delivering high-quality supports to NDIS participants.
The key message? Don’t wait until 2027. Understanding how the changes affect your workforce today will make the transition much smoother tomorrow.
Speak to our experts about what this means for your organisation.
Elton Teh
Director
Calvin Ho
Senior Manager
