SCHADS 1 December pay rise: pricing and payroll checklist

Billing · 10 min read

The SCHADS 1 December pay rise: a six-week checklist for NDIS providers

Your first December pay run is closer than it feels, and the SCHADS increase is only half the sum. Here is the six-week plan for the other half, before the money moves.

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The first pay run of December goes through without a single phone call. Every support worker is paid what they are owed, your prices still cover what the wages now cost, and you are asleep at a sensible hour instead of doing margin sums at the kitchen table.

That picture has a deadline. From the first full pay period on or after 1 December 2026, home care employees who provide disability care get an initial increase of up to 15 percent to their minimum award rate (Fair Work Ombudsman). The NDIS price limits for 2026-27 were set on 24 September, and the NDIA says its pricing schedule will be updated later this year to reflect any required changes.

Below is a six-week checklist, with a job for each week, to get you ready before that first pay run rather than after it.

What is changing and when

Each date below carries a status: in force, made for a future date, announced, or consultation.

DateWhat happensStatus
From the first full pay period on or after 1 September 2026, to 28 February 2027Vehicle allowance under the SCHADS Award rises from $1.01 to $1.05 per kilometre (Fair Work Ombudsman, 31 August 2026)In force, temporary
11 September 2026The Fair Work Commission issued its decision on Schedule E of the SCHADS Award (Department of Health release, 24 September 2026)Decision made
24 September 20262026-27 NDIS price limits are effective (NDIA pricing arrangements)In force
1 November 2026Consultation closes on the annual pricing review for 2027-28 prices (NDIA pricing updates)Consultation
First full pay period on or after 1 December 2026Initial increase of up to 15 percent to minimum award rates for home care disability employees (Fair Work Ombudsman, 21 September 2026)Made for a future date
1 January 2027The Annual Pricing Review recommended differentiated pricing begin on this dateRecommendation, under consultation
First full pay period on or after 1 October 2027Most of the remaining changes start; any remaining increase to minimum award rates applies from the same pointAnnounced

Two cautions. The Fair Work Ombudsman says "up to 15%", and we have not read which classifications receive which percentage, so we do not state one. And the Ombudsman says a 1 December 2026 pay guide for the award will be available, so that is the document to work from once it is published.

Our reading: where the margin squeeze comes from

This section is our interpretation, not a statement from the Fair Work Ombudsman or the NDIA.

  • The wage date is fixed. The increase takes effect from the first full pay period on or after 1 December. Your pay cycle decides which pay run is the first, so find that date for your organisation early.
  • The price is not yours to set. NDIS price limits are maximums set by the NDIA. The NDIA says the 2026-27 schedule will be updated later this year to reflect any required changes. We do not know what that update will contain or when it will arrive, so timing may not line up with 1 December.
  • On-costs move with the base rate. Superannuation, leave loading and penalty rates are usually worked out from the base rate. If the base rate rises, the costs built on it can rise too. Ask your payroll team or adviser to confirm which of your costs are calculated that way.
  • Sleepovers and overnight shifts. They are easy to leave out of a pay model because they sit apart from ordinary hours. Include them from the start.
  • Travel. Vehicle allowance is a separate line with its own date window, covered further down.

If you bill late, the squeeze is worse, because wages are paid on schedule while money arrives later. Our article on NDIS claims over 90 days and the extra checks that protect cash flow covers the claiming side of that.

A six-week checklist

Work through these in order. The weeks are a suggested pace, not a legal timetable.

Week 1 (now): know who is covered

  1. Confirm which of your staff are home care disability employees under the SCHADS Award. The Ombudsman's wording is about "home care employees who provide disability care", so check each role against the award, not against job titles.
  2. Confirm how each person is paid. Are they on the award, above the award, or under an enterprise agreement? If you pay under an enterprise agreement or above award, check how the new minimum compares.
  3. Plan to download the 1 December pay guide when the Fair Work Ombudsman publishes it. The page says it will be available as DOCX and PDF.

Week 2: model the pay run

  1. Model a pay run at the new minimums. Use your real hours by level, and include penalties, sleepovers and allowances.
  2. Compare it to your current pay run. The difference is the number every later decision depends on.

Week 3: check your rates against the price limits

  1. Check every service agreement's rates against the 24 September price limits. The NDIA's pricing page says the maximum prices reflect its guidance on recommended prices published in June 2026.
  2. Note where you charge below the limit. Those lines are where you have room to move without breaching a maximum.

Week 4: decide and communicate

  1. Decide your pricing changes. Base it on your modelled costs.
  2. Plan the participant communication. Check what your agreements require for a price change notice, and what each participant's plan manager or support coordinator will need to see. We do not state a notice period here, because it depends on your agreements.

Week 5: update payroll and test

  1. Update payroll settings and pay rules for the first full pay period on or after 1 December.
  2. Test with one pay run in a sandbox or a dry run before the real one.

Week 6: run it and reconcile

  1. Run the first December pay run and reconcile it against your model from Week 2.
  2. Watch for the NDIA schedule update. If it changes any price you charge, revisit Weeks 3 and 4.
WeekActionOwner
1Confirm who is covered and how each person is paid; get the 1 December pay guidePayroll officer
2Model the pay run at the new minimums and compareFinance lead
3Check agreement rates against the 24 September price limitsFinance lead
4Decide pricing changes and plan participant communicationOwner
5Update payroll settings and pay rules; test one pay runPayroll officer
6Run, reconcile and watch for the NDIA schedule updatePayroll officer and finance lead

Sleepovers, vehicle allowance and the other small lines

Vehicle allowance. The Fair Work Ombudsman says the SCHADS vehicle allowance "increases from $1.01 per kilometre to $1.05 per kilometre" from the first full pay period on or after 1 September 2026. It says the increased rate applies for a 6-month period and ends on 28 February 2027. If staff drive their own cars for client travel, check that your payroll uses the right rate for the right period, and put 28 February 2027 in the diary. We have not read what applies afterwards, so confirm that with the Ombudsman nearer the time.

Sleepovers. We do not quote any award figure for them. What we can say is practical: list every sleepover shift you run, check how each is paid today, and make sure your model for Week 2 includes them.

How BondiByte helps

BondiByte does not interpret the award for you and does not guarantee correct pay. Your payroll team or adviser confirms the rates. What the software can do is hold your decisions in one place and carry them through to payroll.

Pay Levels and Pay Rules

Pay Levels and Pay Rules are optional per organisation. They cover levels, rates, dated rules, sleepover pay, and weekday, weekend and public holiday rules. Holiday pay needs a payroll jurisdiction on the contract. In Pay Rules you can publish a new version of a rate with its own Effective from date, including a future one. The earlier rate keeps applying until that day, and the new rate applies to shifts from that day onward. You enter the rate and choose the date. Rates follow each shift's date, so choose a date that starts a pay period, and confirm it with your payroll team against your own pay cycle. See the Pay Rules overview and the weekday, weekend and public holiday rules guide for the Effective from step. Sleepover shifts are a good example. With Pay Levels on, they are priced from your Pay Level rules and a Sleepover rule you publish.

Timesheets and payroll

Approved timesheets go to payroll three ways: download a CSV for MYOB, download a CSV for Employment Hero, or send them straight to Xero Payroll through your Xero connection, where they arrive as draft timesheets for your payroll team to review. Only approved timesheets are exported. The Xero route carries hours, so your payroll team still checks pay items and allowances in Xero before anyone is paid.

Service agreement lines and invoices

Each client's active service agreement holds the billing lines you compare against the price limits in Week 3. BondiByte drafts invoices from completed shifts on your published roster, using the billing lines on each client's active service agreement. Your team reviews each draft before it goes out. For the wider picture, see how to go from roster to invoice without double entry.

Start a 28-day free trial on Starter, Foundation or Growth, no card needed. Every plan includes the full toolset.

Frequently asked questions

Who gets the increase?

The Fair Work Ombudsman says home care employees who provide disability care will receive an initial increase of up to 15 percent to their minimum award rate (Fair Work Ombudsman). If you pay under an enterprise agreement or above award, check how the new minimum compares.

When does it start?

From the first full pay period on or after 1 December 2026, according to the Fair Work Ombudsman's pay and allowances page and its award changes page. Which date that is for you depends on your pay cycle.

Does the NDIS price limit change on 1 December?

We cannot say. The 2026-27 price limits were effective from 24 September. The Department of Health release says the 2026-27 NDIS Pricing Schedule "will be updated later this year to reflect any required changes" (NDIA). It gives no date and does not say what will change. Watch the NDIA's pricing updates page.

What about the vehicle allowance?

It rose from $1.01 to $1.05 per kilometre from the first full pay period on or after 1 September 2026, for a 6-month period that ends on 28 February 2027 (Fair Work Ombudsman, 31 August 2026).

What happens in October 2027?

The Ombudsman says most of the remaining changes start from the first full pay period starting on or after 1 October 2027, and any remaining increase to minimum award rates applies from then. That is announced, not yet in force. See the award changes page.

Sources

Checked on 17 October 2026. Rules and prices change, so confirm with the Fair Work Ombudsman and the NDIA before relying on this.

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