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Is your team finding it challenging to navigate the SCHADS Award and stay on top of the changes? Let’s start by breaking down the key updates, what steps you need to take before January 1st, 2025, to prepare, and then the best part: we’ll show you how CareMasters’ SCHADS Award interpreter—built directly into our software—removes all the guesswork from award calculations, so you can focus on what matters most: providing care!
On 15 March 2024, the Fair Work Commission (FWC) approved wage increases for specific aged care workers under the Social, Community, Home Care, and Disability Services Industry Award 2010 (SCHADS Award), the Aged Care Award 2010, and the Nurses Award 2020 (Nurses Award).
The wage increases will vary across different employee classifications. Additionally, the FWC has signalled that revisions to the classification structure for employees in these sectors will be necessary.
What is the reason for the changes to the SCHADS Award?
The changes were introduced following the Fair Work Commission’s (FWC) finding that the minimum wages for these workers under the Awards were too low in comparison to similar roles in other sectors.
Furthermore, the FWC acknowledged that the responsibilities of care workers in the aged care sector have become increasingly complex, justifying the need for higher wage rates.
When will the changes to the SCHADS Awards take effect?
In June 2024, the Fair Work Commission (FWC) decided that wage increases would be implemented in two stages, with the number of phases depending on the size of the increase.
This will function as follows:
On 11 September 2024, the Fair Work Commission (FWC) reached a final decision regarding the classification structures within the Awards. These changes are scheduled to come into effect on 1 January 2025 and will be implemented as outlined below.
Aged Care Workers and Their Entitlements Under the SCHADS Award
The SCHADS Award applies to care workers delivering in-home care services to aged individuals. The classification structure for direct care aged care workers under the SCHADS Award will be updated to align with the structure used for direct care aged care workers under the Aged Care Award.
This change will result in separate classification schedules under the SCHADS Award: one for home care workers supporting individuals with disabilities and another for those providing care to aged persons.
Starting 1 January 2025, all new aged care workers hired under the SCHADS Award must be classified according to the updated classification descriptions outlined in the newly introduced Schedule F of the Award.
For aged care workers employed before 1 January 2025, a new Schedule G will outline the appropriate new classification they will transition to.
For instance, a Home Care Employee currently classified as Level 5, Pay Point 1 in aged care will transition to a Level 6 classification as of 1 January 2025. However, for two specific classifications, provisions will ensure that employees hired before 1 January 2025 will continue to receive the pay rate linked to their previous classification if it is higher than the new classification’s rate. This applies exclusively to employees at Level 4, Pay Point 2, and Level 5, Pay Point 2.
Nursing Assistants Providing Home Care for the Elderly
From 1 January 2025, Assistants in Nursing providing care to elderly individuals in the home care sector will transition to being covered by the SCHADS Award rather than the Nurses Award. The SCHADS Award will include provisions to ensure that employees hired before this date will continue to receive the extra week of annual leave they are entitled to under the Nurses Award. However, this entitlement will not apply to Assistants in Nursing who commence employment on or after 1 January 2025.
Entitlements and Classifications for Care Workers under the Aged Care Award
The Aged Care Award covers employees working in residential aged care facilities, such as aged care homes.
Changes to the Award will introduce a distinct classification system, separating roles for general or indirect aged care staff (e.g., cooks, cleaners, and administrative workers) from those of direct care workers. The classification structure for direct care workers will align with the system outlined in the SCHADS Award.
From 1 January 2025, all newly employed direct care workers must be classified under this updated framework.
For direct care workers employed before 1 January 2025, a new Schedule I will outline how their current classification will transition into the updated classification structure. For instance, an employee currently classified as Direct Care, Level 7 under the existing framework will be reclassified as Direct Care, Level 6, Team Leader under the new system starting 1 January 2025.
For employees currently classified as Direct Care, Level 3, they will retain their existing pay rate even after transitioning to the new classification of Direct Care, Level 2 on 1 January 2025. This is because the current Level 3 pay rate is higher than the new Level 2 rate. This provision applies exclusively to this classification.
Assistants in Nursing Supporting Elderly Residents in Aged Care Facilities
Assistants in Nursing working in residential aged care will transition to coverage under the Aged Care Award instead of the Nurses Award. Starting 1 January 2025, newly employed workers will be classified according to the direct care classification structure outlined in the updated Award.
For those already employed before this date, a transition schedule will specify how their current classification under the Nurses Award aligns with the new classification structure within the Aged Care Award.
Note: The updated Aged Care Award includes provisions to ensure that Assistants in Nursing employed before 1 January 2025 retain their entitlement to an additional week of annual leave, preserving this benefit as they transition to the new classification structure.
Resources: Explore the upcoming changes to the three Awards by visiting this link:
Streamline Payroll with CareMaster’s Award Interpretation Software
CareMaster offers purpose-built Award interpretation software, seamlessly integrated with leading payroll processes and third-party accounting platforms such as Xero, MYOB, and KeyPay. Designed to eliminate the guesswork in paying employees the correct rates, this innovative solution ensures compliance while saving you significant time and effort.
The software is fully updated and operational from 1 January 2025, enabling NDIS and Aged Care providers to easily adapt to the latest Award changes without unnecessary delays or time-consuming adjustments. With CareMaster, you can handle payroll and Award updates efficiently, ensuring smooth transitions to future changes.
Want to see how CareMaster can take the stress out of interpreting Award rates and prepare you for upcoming updates? Book a free demo today and experience firsthand how CareMaster helps providers meet pay rate requirements effortlessly. Let us show you how to simplify your processes and stay ahead of compliance challenges!
Disclaimer: The information in this article is accurate as of 24 December 2024 and has been prepared by CareMaster Pty Ltd (ABN 13 651 241 897). It is intended to provide general guidance to employers and employees and is shared in good faith. This article does not constitute professional advice and should not be relied upon as such. The information presented is based on data obtained from third-party sources. While every effort has been made to ensure its accuracy, the data has not been independently verified, and no guarantees are made regarding its completeness, accuracy, currency, or suitability for specific purposes. CareMaster Pty Ltd disclaims any responsibility for inaccuracies in the information and shall not be held liable for any losses or damages arising directly or indirectly from reliance on, use of, or inability to use the content of this article. Readers are advised to conduct their own research and seek professional advice before making any decisions or taking any action based on the information provided.
CareMaster would like to acknowledge the Traditional Custodians of the land on which we operate, and pay our respects to their Elders past and present.
