The 4.75% SCHADS Increase: What It Means
Chris O • June 4, 2026
Every year, social care organisations across Australia wait for one key announcement that can significantly impact their workforce budgets, service delivery models and recruitment strategies.
But First, What Does SCHADS Stand For?
SCHADS stands for the: Social, Community, Home Care and Disability Services Industry Award - If you work in disability, community services, home care or social support, you've probably heard of the SCHADS Award. It's one of Australia's largest modern awards and sets the minimum employment conditions for hundreds of thousands of workers across the social care sector.
The award is overseen by the Fair Work Commission and establishes the minimum standards employers must meet when employing eligible workers. Following the Fair Work Commission's 2026 Annual Wage Review decision, a 4.75% increase to SCHADS Award wages has been confirmed, with the new rates taking effect from the first full pay period on or after 1 July 2026.
For employers across the social care sector, attention is now turning to workforce planning, compliance and budgeting for the new financial year.
It covers employees working in areas such as:
- Disability support
- Community services
- Home care
- Youth services
- Family support
- Crisis accommodation
- Social and community programs
And it's not just base pay that may change. Any increase can also impact:
- Weekend penalties
- Casual loadings
- Overtime rates
- Public holiday payments
- Sleepover and shift allowances
Industry Insight
"As a recruiter working closely with the NFP sector, I welcome the 4.75% SCHADS increase. Better pay will help attract and retain the incredible people who dedicate their careers to supporting others. But many leaders are already asking the same question: where will the additional funding come from? The success of this change won't be measured by wage growth alone, but by whether organisations are given the resources to sustain it."
- Greg Forster (Senior Recruitment Specialist | Talent Quarter, 25+ years' experience recruiting leaders across the welfare, community, disability, aged care and mental health sectors).
What Does This Mean for Employers?
For providers across healthcare, disability and community services, staying on top of award changes is critical. Now is the time to:
✔ Review employee classifications
✔ Check payroll systems are up to date
✔ Budget for increased labour costs
✔ Ensure compliance across your workforce
Getting it wrong can create significant compliance risks. But, getting it right helps protect both your organisation and your employees.
The Bottom Line
The SCHADS Award isn't just about wages. It's a key part of workforce compliance, employee retention and operational planning across Australia's care sector. With the wage increase now confirmed, organisations that prepare early will be best placed to manage costs, remain compliant and continue attracting quality talent in an increasingly competitive market.
Need Support Navigating Workforce Changes?
Whether you're preparing for SCHADS Award updates, planning for workforce growth, or looking to strengthen your recruitment strategy, having the right people in place has never been more important.
At Talent Quarter, we partner with healthcare, disability, aged care and community service organisations across Australia to help solve workforce challenges before they impact service delivery. From permanent recruitment and workforce planning to sourcing hard-to-fill talent, our team understands the unique pressures facing the care sector.
If you're reviewing your workforce needs for the new financial year, we'd love to have a conversation.
Get in touch with our Talent Quarter team to discuss your hiring goals, workforce challenges and talent needs.
Share this post
A World Mental Health Day message from Jan Bannerman , Joint Managing Director, Talent Quarter
If you've spent a few years in Emergency, chances are you've thought about it. "Could I do remote nursing?"
When our Nurse Alex moved from Northern Ireland to Australia in November 2025 , she wanted to do two things: work as a nurse and make the most of the opportunity to explore Australia. Travel nursing has given her the chance to do both! Making the most of the time between contracts 🐋 After wrapping up a contract, Alex headed to the Gold Coast for some well-earned downtime - which happened to fall right in the middle of humpback whale migration season. “I went whale watching which was incredible. It was peak season for humpback whales migrating down the east coast. There were so many whales!” For Alex, taking a break between contracts isn’t just about travelling. It gives her a chance to properly switch off after working in demanding and sometimes unfamiliar environments. “Contracts can be both physically and mentally demanding at times, and working in unknown environments can be overwhelming. Having time off between contracts has helped me recharge to be ready for the next contract.” Work, travel and a bit more freedom One of the things Alex has enjoyed most is being able to choose contracts that suit her experience and the way she wants to spend her time in Australia. “It’s great being able to balance the work and the holiday aspects of my Working Holiday Visa. As much as I love work, I love being able to see and experience Australia in all of its beauty in my downtime.” It’s also given her the chance to broaden her nursing experience. Alex comes from an ICU background, but since starting travel nursing she’s also worked in ED and on a medical ward. And then there are the places. Instead of only visiting somewhere for a weekend, Alex gets to spend a few weeks living and working there - experiencing smaller towns and parts of Australia she might never otherwise have had the chance to call home. Next stop: Tasmania 📍 Alex has now started a new contract in Tasmania, where she’s looking forward to gaining more ED experience and, of course, exploring more of the state while she’s there. For any nurses thinking about doing something similar, Alex’s advice is pretty simple: “Do it! I was nervous to start travel nursing, but I’m so glad I did it. The team at Talent Quarter supported and guided me throughout the whole way. They are always just a phone call away.” For Alex, it’s that freedom that makes travel nursing so worthwhile. “You could work the full year straight if you want, or take months off at a time to travel. It’s up to you.” A new contract, a new part of Australia and the freedom to decide what comes next. That’s what travel nursing has looked like for Alex so far. Thinking about giving travel nursing a go? Whether you’re ready for your next contract or just curious about what opportunities are out there, we’d love to hear from you . Get in touch with our Talent Quarter team and have a chat about where travel nursing could take you next! Click here: https://www.talentquarter.com/contact-us or get in touch with our consultant, Lewis Dew!
