Major changes to the SCHADS Award on the horizon

The Fair Work Commission (the Commission) foreshadows major changes to the pay and classification structures in the Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award), setting out its findings and provisional views about what should be done (and when) in the decision handed down on Wednesday 16 April 2025. 

Key findings of the Commission 

The Commission has determined: 

1. That increases to the minimum award wages for social and community services (SACS) employees, crisis accommodation employees and home care employees covered by the SCHADS Award are necessary after finding that existing rates do not properly reflect the value of the work performed (in part due to historical undervaluation based on gender).     
2. That there is an equivalence of work value in all direct care functions in the classification streams in the SCHADS Award (i.e. across disability services, home care, SACS work, etc). 
3. To dismiss two applications brought by the ASU that were heard together with the Commission-initiated proceedings. By those applications, the ASU had sought to insert a new definition for “social and community services”, incorporate the ERO and variations to the classification structure in Schedules B, D and E of the SCHADS Award. 

Key proposed change: Single and uniform pay and classification structures

The Commission proposes that the existing classification structures at Schedules B to F of the SCHADS Award should be removed and replaced with a single and unform classification structure, which would also provide for a unified set of minimum wage rates across the different types of work covered by the SCHADS Award. 

The features of the proposed classification structure include:

1. Adoption of the “caring skills benchmark rate” for Certificate III-qualified employees. That benchmark is $1,269.80/week and currently aligns with the ERO rate for a SACS employee Level 2, pay point 1.
2. Adoption of the “C1(a) benchmark” for all degree-qualified employees. That benchmark is $1,525.90 (after taking into account the Annual Wage Review 2023-24 Decision) and approximately aligns with the ERO rate for a four-year degree-qualified SACS employee level 3 and a Crisis accommodation employee level 1 at pay point 4.
3. Recognition of the acquisition of relevant qualifications at each classification level, whilst making allowance for the “recognition of equivalent experience and training, obtained for example through ‘lived experience’”. The Commission observed that “lived experience” is a particular feature of SACS work. 
4. Removal of the current annual pay increments which are a feature of the classification structures in Schedules B, C, D and E.

Further, upon implementation of the proposed structure, the Commission proposes to revoke the Equal Remuneration Order (ERO). This is because the proposed minimum wage rates “will eliminate the gender-based undervaluation of work and ensure equal remuneration for work of equal or comparable value” – and render the ERO “redundant”. 

What will the “single new classification structure” look like?

The Commission’s proposed new classification structure is “substantially” based on the classification structure for "home care employees—aged care” in Schedule F. As will be seen in the table below, the Commission have also proposed to add additional classifications with a view to “encompass the broad scope of work and qualifications captured in current Schedules B and C”. 

Why is there no reference to “family day care scheme services” in the new structure?

The Commission propose to remove family day care scheme services from the SCHADS Award because there was “no evidence in these proceedings concerning the work currently performed by employees covered by the Schedule D classifications”.

The provisional view of the Commission is that the inclusion of family day care scheme services in the SCHADS Award is an anomaly. It is proposed that all such work should be covered by the Children’s Services Award 2010. 

Specific feedback sought: Help us answer the Commission’s questions!  

In addition to setting out its provisional views, the Commission has outlined four questions for consideration by the interested parties appearing in the proceedings (which are not intended to limit the matters raised in response to the provisional views of the Commission). 

The questions are set out below: 

1. Whether the classification descriptors provide a sufficient level of prescription to allow all employees covered by the SCHADS Award to be classified.
2. What transitional arrangements should be implemented to translate employees from the current classifications to the new structure and ensure that no employee has their wage rate reduced because of the transition?
3. What should the operative date for the new structure and the revocation of the ERO be, and what (if any) phasing-in arrangements should apply, having regard to the need to rectify gender-based undervaluation and the funding constraints on employers covered by the SCHADS Award?
4. What provisions of the SCHADS Award might require modification if the new structure is implemented?

This invitation provides some scope to identify potential issues arising from the Commission’s proposal and, importantly, the opportunity to advocate for adjustments and/or an alternative approach. 

What if I am concerned by the proposed changes? 

It is important to emphasise that the proposed changes set out above represent the “provisional views" of the Commission. Prior to any determinations being issued, the interested parties that appeared in the proceedings will have the opportunity to make submissions. This provides some scope to advocate for adjustments and alternative approaches. 

Australian Business Lawyers & Advisors (ABLA) will be participating in the next stage of the proceeding on behalf of Business NSW, Australian Business Industrial, Ageing Australia, and National Disability Services.

Should any ABLA clients or members of the identified employer associations wish to provide any feedback regarding the provisional views or questions of the Commission, please feel free to contact us at info@ablawyers.com.au or 1300 565 846.