21 January, 2025
The Ultimate Guide to Understanding the SCHADS Award Changes Effective from 1 January 2025
NDIS latest news
4 min read
Key Changes to the SCHADS Award
1. Wage Increases for Caregivers
Previously, there were standard classification-based increments, but there were no specific staged increases.
New Changes:
- Stage 1: 50% wage increase effective January 1, 2025.
- Stage 2: Remaining 50% wage increase effective October 1, 2025.
- Classifications with less than 3% increase: Receive the full adjustment on January 1, 2025.
2. Minimum Engagement Periods
Previously, there was a minimum engagement period of 1 hour per shift for casual and part-time workers.
New Changes: Minimum engagement period increased to 2 hours per shift.
3. Compensation for Canceled Shifts
Previously, there was no formal compensation for canceled shifts.
New Changes: Compensation provided, or alternate shifts reassigned for cancellations made on short notice (not quantified in prior data).
4. Overtime and On-Call Allowances
Previously, standard overtime rates were applied (e.g., time-and-a-half for the first 2 hours; double-time thereafter). On-call allowances were fixed amounts.
New Changes: Enhanced overtime rates and improved allowances:
- Increased compensation for after-hours work.
- The exact percentage increase is not specified but exceeds prior rates.
5. Broken Shift Allowance
Previously, no additional percentage-based allowances for breaks within fragmented shifts.
New Changes:
- 1.7% allowance for one unpaid break within a shift.
- 2.25% allowance for two unpaid breaks within 12 hours.
6. Remote Response Pay
Previously, there was no explicit compensation for responding to emergencies outside work hours.
New Changes: Employees receive compensation for time spent resolving issues outside their scheduled shifts (details of amounts remain undefined).
7. Classification Structure Updates
Previously:
- Home Care Workers: Single classification schedule.
- Assistants in Nursing (AINs): Covered under the Nurses Award.
New Changes:
- Home Care Workers: Separate classifications for supporting aged persons and individuals with disabilities.
- Assistants in Nursing: Shifted from Nurses Award to SCHADS Award for uniform entitlements.
- Residential Aged Care Employees: New classifications distinguishing general staff and direct care workers.
Why These Changes Matter
The updated SCHADS Award promotes income stability, fair compensation, and worker retention, addressing long-standing challenges in the caregiving industry. For NDIS providers, these updates necessitate adopting efficient management tools to align with compliance requirements.
RotaWiz: Simplifying Compliance for NDIS Providers
- Accurate award interpretation for wage calculations.
- Optimized caregiver assignments based on client needs.
- Transparency and efficiency in managing remote responses and on-call allowances.
Statistical Impact of SCHADS Award Changes
A recent study by the Australian Bureau of Statistics (ABS) revealed that the caregiving workforce is expected to grow by 15% by 2030, driven by demand for disability and aged care services. Wage increases under the new SCHADS Award are projected to boost caregiver retention rates by up to 25%.
Resources
The 2025 SCHADS Award changes signify a turning point for Australia’s caregiving sector, emphasizing fair compensation, worker well-being, and industry compliance. For NDIS providers, adopting innovative solutions like RotaWiz ensures smooth transitions and improved care delivery. By staying informed and leveraging the right tools, businesses can thrive in this evolving landscape.
Imagine a world where disability services are readily accessible, customised to meet the needs of every individual, and supported by the latest technological advances. This objective has become a reality in Australia with the establishment of the National Disability Insurance Scheme (NDIS), which has completely changed how disability services are provided.
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