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There have been two significant updates from the Fair Work Commission (FWC).
The FWC announced the annual wage increase for the SCHADS Award will be 4.75% from 1 July 2026. This is a welcome increase in the midst of a national affordability crisis. NCOSS will do all we can to ensure the NSW Government fully covers the cost of this vital increase to worker pay.
The FWC handed down a landmark decision on the SCHADS Award — confirming gender-based undervaluation of our sector’s workforce and mandating significant changes to pay and classification.
What is confirmed – and worth celebrating
- A new Final Classification Structure (FCS) will replace Schedules B, C, E and F from 1 October 2027.
- Home care disability workers (Schedule E) receive an interim pay rise of ~15% from 1 October 2026, although this is a preliminary decision (see below for further details).
- Pay protection for existing employees. No existing employee’s minimum pay rate will be reduced upon translation to the new Award. Where a worker’s current rate exceeds their translated rate, that current rate is retained so they don’t go backwards.
- Lived experience is now explicitly recognised as a basis for classification across multiple levels — a genuine win for peer workers, First Nations workers, and others whose expertise comes from experience as much as formal qualifications.
- Progression is based on time in service (typically 12 calendar months), not hours worked — protecting part-time and casual workers. Demonstrated competency and satisfactory performance are required, so progression is not purely automatic.
What we’re still working through
- Translation complexity. The translation process will be time-consuming and may be challenging, although the FWC has provided a detailed translation table to support organisations and workers. Workers in the same current classification may translate to different new levels and pay points depending on their qualifications and experience.
- Operational complexity. Elements of the decision are positive for workers and workforce retention, but they introduce administrative and cultural challenges for organisations. For example, two workers may be on the same level but paid a different rate — one current worker with their old pay rate protected, and a new worker with the new rate. Another example would be how organisations should practically implement the lived experience equivalency provisions.
- Funding. The decision creates new minimum wage obligations, but governments have made no confirmed commitments to fund the increases through grants and contracts. NCOSS is pursuing this as an urgent advocacy priority across all jurisdictions with our partners.
- Implementation timeframes. The commencement date of 1 October 2027 will present challenges for many organisations. The ASU’s work value application before the FWC may lead to further changes to the classification, including pay rates, which would present greater challenges for organisational readiness. It is possible that the commencement date would be shifted dependent on the ASU application.
- Schedule E provisional view. Parties have 28 days to file submissions on the FWC’s provisional view on the Schedule E interim rate and any technical issues with the draft determinations. NCOSS is considering the best way to engage with this process.
What you need to do now
- Note the key dates: Schedule E interim increase from 1 October 2026 (preliminary decision); full FCS from 1 October 2027.
- Start early internal conversations with your HR and finance teams about what the new classification structure may mean for your workforce — particularly around translation, new starter classifications, and budget planning. You can review the decision, and draft determinations by following the links below.
- Share your concerns with NCOSS. If the decision raises specific issues for your organisation — workforce, financial, or operational — please let us know. Your feedback shapes our advocacy to government and our support for the sector.
Have concerns or questions?
NCOSS will provide a detailed member briefing in the coming weeks. In the meantime, please share any concerns or questions with NCOSS at advocacy@ncoss.org.au. Your feedback informs our ongoing advocacy and support for the sector.