If you employ support workers, the SCHADS Award sets the minimum you must pay them and the rules for how their shifts are paid. For most NDIS providers, it is also the biggest source of payroll risk in the business.
2026 has been a busy year for the award. Sleepover rules changed in June, minimum rates went up in July, super moved to every payday, and home care disability workers receive a pay rise from 1 December. A much bigger change to how almost every employee is classified follows in October 2027.
This guide explains what has changed, where payroll errors usually happen and what to check before your next pay run. It focuses on payroll and cash flow rather than employment law, so for questions about how a particular employee should be classified, the Fair Work Ombudsman or an employment adviser is the right place to start.
What is the SCHADS Award?
The Social, Community, Home Care and Disability Services Industry Award 2010 (MA000100) is the modern award that covers most disability support work in Australia. It sets minimum pay rates, penalty rates and allowances, along with rules for rostering, overtime, breaks and leave.
According to the Fair Work Ombudsman, the award covers social and community services, crisis assistance and supported housing, and home care, including personal care and domestic and lifestyle support for a person with a disability in a community or residential setting.
If your employees are covered by a registered enterprise agreement, check that agreement first, because different terms may apply.
SCHADS Award changes in 2026 at a glance
| When | What changed | Who it affects |
|---|---|---|
| 1 June 2026 | Sleepover rules changed | Employees who work sleepovers |
| First full pay period on or after 1 July 2026 | Minimum rates increased by 4.75% in the Annual Wage Review | All SCHADS employees |
| 1 July 2026 | Payday Super started, so super is paid for each payday | All employers |
| First full pay period on or after 1 December 2026 | Interim increase of up to 15% | Home care employees providing disability care (Schedule E) |
| 1 October 2027 | A new 10-level classification structure replaces Schedules B, C, E and F | Almost all SCHADS employees |
The 1 December pay rise for home care disability workers
In June 2026, the Fair Work Commission finalised its review of gender-based undervaluation in the SCHADS Award. As part of that review, home care employees who provide disability care, who are paid under Schedule E, receive an initial increase of up to 15% to their minimum rates. It starts from the first full pay period on or after 1 December 2026. The Commission first proposed 1 October and moved the start date in a later decision in September.
This increase does not apply to disability support workers paid under Schedule B, or to home care workers in aged care.
The NDIA has announced price increases for four NDIS support items from 1 December 2026 that are linked to this decision. Even so, the new minimum rates apply whether or not your pricing has caught up, so it is worth modelling the extra wage cost now rather than after the first pay run in December.
Schedule B or Schedule E? Why classification matters more than ever
In its June decision, the Commission noted that some employers pay disability support workers under Schedule B while others pay them under Schedule E, and that the line between the two had become hard to explain. It also noted that the NDIS cost model assumes Schedule B wages.
Until the new structure starts, which schedule an employee sits under, and at what level and pay point, decides what they must be paid. With a 15% increase about to apply to one schedule and not the other, now is a good time to confirm each employee’s classification and keep a record of why it was chosen.
What changes in October 2027
From 1 October 2027, a single new classification structure replaces Schedules B, C, E and F. The main points for NDIS providers are:
- Levels are based on qualifications or equivalent experience. Lived experience can count, rather than relying on long task descriptions.
- Disability support workers start at Level 2.2. This applies for the first 12 months of relevant industry experience, after which they move to Level 3.1, unless a higher level already applies.
- Progression is not automatic. Employees move up a pay point after 12 months of relevant industry experience, but only where they have demonstrated competency and satisfactory performance.
- No one goes backwards. Where an existing employee’s current rate is higher than their new minimum, the higher rate is kept.
- The Equal Remuneration Order is revoked, because its rates have been built into the new structure.
In practice, every employee will need to be mapped into the new structure, and you will need a simple way to record performance and progression so pay point decisions can be explained.
The SCHADS rules that most often cause underpayments
Most SCHADS payroll errors are not caused by the base rate. They come from the rules around how shifts are worked and paid. These are the areas worth checking first.
Minimum engagement
The Fair Work Ombudsman explains that part-time and casual employees must be paid a minimum number of hours for each shift, or each part of a broken shift. For social and community services employees doing disability services work, the minimum is 2 hours. It is 3 hours for social and community services employees doing other work, and 2 hours for all other employees.
Time spent travelling between clients during that minimum period counts as time worked and must be paid.
Broken shifts
A broken shift is split into 2 or 3 periods of work by unpaid breaks, within a 12-hour period. A meal break does not count. You can roster a broken shift with 2 periods of work and 1 unpaid break, but 3 periods with 2 unpaid breaks needs the employee’s agreement.
A broken shift allowance applies, and it is higher when there are 2 unpaid breaks. The minimum engagement also applies to each period of work, so a short morning visit still needs to be paid at the minimum.
Client cancellations
When a client cancels a home care or disability service within 7 days, and a full-time or part-time employee was rostered, you can direct the employee to other work or cancel the shift. If you cancel it, you either pay the employee as if they had worked or offer make-up time.
Make-up time has conditions. You need to give at least 12 hours’ notice of the cancellation, give at least 7 days’ notice of the new shift unless the employee agrees otherwise, and the time has to be worked within 6 weeks.
Sleepovers
Following a Fair Work Commission decision in April 2026, a sleepover no longer counts as a break between shifts from 1 June 2026. Work done immediately before and after a sleepover is now treated as part of the same shift, which affects how overtime and shift loadings are calculated. If your rosters include sleepovers, check that your payroll system was updated for this change.
Overtime outside the span of hours
Part-time and casual employees who work outside the span of ordinary hours are entitled to overtime. Monday to Saturday, this is 150% for the first 2 hours and 200% after that. On Sundays, all overtime outside the span is paid at 200%.
Remote work and on-call
When an employee works remotely outside their rostered hours, for example taking a call while on call, minimum payments apply. These are 15 minutes when on call between 6am and 10pm, 30 minutes when on call between 10pm and 6am, and 1 hour when the employee was not on call or joins a team meeting or training remotely.
Payday Super and your SCHADS payroll
From 1 July 2026, employers must pay super for each payday rather than quarterly. Contributions generally need to reach the employee’s fund within 7 business days after payday, and for a new employee’s first contribution you have 20 business days.
For NDIS providers with weekly or fortnightly pay runs and a large casual workforce, this changes cash flow. Super now leaves the business with every pay run instead of once a quarter, and a rejected payment does not pause the 7-day clock. Our cash flow tips for NDIS providers cover ways to plan for the gap between paying staff and getting paid by participants and plan managers.
Why NDIS prices do not automatically follow wages
Award wages are set by the Fair Work Commission. NDIS price limits are set separately, through the NDIS Pricing Schedule, which for 2026-27 took effect on 1 July 2026. When wages rise faster than the prices you can charge, the difference comes out of your margin.
That makes it important to know your real cost per hour for each type of support, including penalties, allowances, super, leave and non-billable time. It also helps to review your prices and service agreements whenever the award or the pricing schedule changes. If GST is also part of your pricing questions, our guide on whether NDIS supports are GST-free explains how the ATO rules work.
A SCHADS payroll checklist for NDIS providers
- Confirm the schedule, level and pay point for every employee, and record why each was chosen.
- Check your payroll system is using the 1 July 2026 rates, and is ready for 1 December 2026 if you employ anyone under Schedule E.
- Test real shifts from your last pay run, including a broken shift, a sleepover, a cancellation and a short visit, and check each line of the calculation.
- Check super is reaching funds within 7 business days of each payday.
- Reconcile your Single Touch Payroll figures with your payroll reports each pay run.
- Compare your prices and service agreements with your actual cost per hour.
- Start mapping employees to the new classification structure well before October 2027.
Frequently asked questions
These are the SCHADS questions NDIS providers ask us most often.
What is the minimum shift length for disability support workers under the SCHADS Award?
Part-time and casual social and community services employees doing disability services work must be paid for at least 2 hours for each shift, or each part of a broken shift.
Does the 1 December 2026 SCHADS pay rise apply to all disability support workers?
No. The interim increase of up to 15% applies to home care employees providing disability care under Schedule E. It does not apply to disability support workers paid under Schedule B.
When does the new SCHADS classification structure start?
The new structure replaces Schedules B, C, E and F from 1 October 2027. Existing employees will not have their minimum rate reduced when they move across.
Can I run SCHADS payroll in Xero?
Xero can process SCHADS pay runs, but the award rules still need to be set up correctly for your workforce, including classifications, penalties, allowances and minimum engagements, and kept up to date as the award changes.
How Schofields Accountants can help
We work with NDIS providers across Western Sydney and Australia-wide on bookkeeping, payroll, BAS, GST and tax. Our director, Anesh Chand, is a CPA, Registered Tax Agent and Xero Payroll Certified, so your payroll setup and your wider tax advice come from the same team.
If you would like us to review your payroll setup, run your pay cycles or help you plan for the cost of the 2026 and 2027 changes, get in touch with our team. You can also read more about our accounting services for NDIS providers and our bookkeeping and payroll services.
This article is general information only and does not take your circumstances into account. Award obligations depend on each employee’s role and arrangements, so check the current Fair Work Ombudsman pay guide and seek advice about your own situation.
