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SCHADS Schedule E is confirmed for 1 December. Your planning window is now defined.
On 11 September 2026 the Fair Work Commission issued its final decision and determination on Schedule E of the Social, Community, Home Care and Disability Services Industry Award. The interim increase of about 15% for home care employees performing disability care is confirmed. The start date has moved from 1 October 2026 to 1 December 2026, and the remaining increase follows on 1 October 2027 when the new classification structure commences. The NDIS price schedule still sets a ceiling on what many providers can claim. A service can be busy, fully rostered and still consume unrestricted reserves if its delivered-hour economics no longer work.
The test is contribution margin by service line: claimable revenue for each delivered hour, less every cost required to deliver that hour. Include ordinary wages, penalties, allowances, leave, superannuation, travel, supervision, training, administration attached to delivery and the cost of cancellations. Rank services by margin percentage and weekly cash effect before deciding what to redesign, renegotiate, reduce or exit safely.
The figure is no longer provisional. The rates are published, the date is fixed and the path through to October 2027 is set out in the decision. The two-month deferral is not relief. It is a planning window, and providers now have a confirmed timetable to work to: the December increase first, then the October 2027 transition. A provider that waits until the December pay period lands will be reshaping rosters, service agreements and exposure under time pressure, with participants and staff absorbing the disruption.
What the Commission actually decided
Two documents matter. The decision [2026] FWCFB 232 and the determination PR814259, both issued on 11 September 2026.
- The interim increase of about 15% for employees engaged under Schedule E now commences on 1 December 2026, deferred from 1 October 2026.
- It does not apply to a given employee until the start of their first full pay period beginning on or after 1 December 2026. For most providers that is a date in early December, not 1 December itself.
- The uplift is not 15% for everyone. Employees currently classified at Level E.4.2 receive 14.96% and Level E.5.2 receive 13.31%.
- The remaining increase applies on 1 October 2027, when the new classification structure commences. The size of that step depends on which translation table an employee falls under. Work translating as home care disability work (Schedule B.8) sits between 1.97% and 6.97%, median about 3.7%, which is the range the Commission cites at paragraph [168]. Work translating as disability support work (Schedule B.7) runs materially higher, up to about 17% on top of the December rate. The Commission decided against a second interim step, so this is a two-date sequence, not three.
- The Commission deferred the start date because no funding commitment has been made by the Commonwealth, and because providers need time to renegotiate with funders and clients. The wage cost is locked. The funding to meet it is not.
The new Schedule E weekly rates for a full-time home care employee performing disability care, operative from the first full pay period on or after 1 December 2026:
| Classification | Weekly rate |
|---|---|
| Level 1, pay point 1 | $1,192.30 |
| Level 2, pay point 1 | $1,261.10 |
| Level 2, pay point 2 | $1,269.70 |
| Level 3, pay point 1 (certificate III) | $1,287.00 |
| Level 3, pay point 2 | $1,326.80 |
| Level 4, pay point 1 | $1,404.20 |
| Level 4, pay point 2 | $1,431.70 |
| Level 5, pay point 1 (degree or diploma) | $1,505.60 |
| Level 5, pay point 2 | $1,541.90 |
Before you model anything, answer the prior question: which of your shifts sit under Schedule E and which sit under Schedule B? The December increase applies to employees currently classified under Schedule E. Because disability support work has historically been classified under both Schedules B and E, providers should verify each employee’s existing classification rather than relying on job title or service description. Many providers cannot answer this cleanly from their own roster data, and the answer determines the size of the December cost step.
Then note that the definition inverts on 1 October 2027. Schedule E is abolished. Personal care for a person with a disability becomes disability support work in the social and community services stream regardless of where it is performed, including in a private residence. Home care disability work is reduced to domestic assistance and home maintenance only. So the December question is Schedule E or Schedule B, and the 2027 question is personal care or domestic assistance. Most rosters are not coded for the second one.
Start with revenue per delivered hour
Use the applicable NDIS support item and current price limit for each service. The limit is a ceiling, not proof that the service is viable. Check whether the service is billed hourly, by shift, by group, with a travel component or under another permitted unit.
For each service line, calculate:
Claimable revenue per delivered hour = total valid claims for the period ÷ participant-facing hours actually delivered.
Do not divide by rostered hours. Cancellations, unfilled shifts, non-claimable travel and gaps between appointments can leave paid time without matching revenue. Delivered hours show what the organisation was able to claim for work that occurred.
Reconcile the calculation to actual claims, not a price-guide spreadsheet. Your bookkeeping foundation needs service codes, support items and labour costs recorded consistently. Otherwise, management is comparing a theoretical price limit with an incomplete cost number.
The delivered-hour margin test
Worked example at $70 claimable per delivered hour. Illustrative figures, not NDIS price limits.
Claimable revenue
$70.00
Wages and penalties
−$42.00
Leave and superannuation
−$8.40
Travel and kilometres
−$4.80
Supervision and coordination
−$5.60
Cancellations and unfilled time
−$3.20
Contribution today
$6.00 · 8.6%
After the confirmed +15% December rise the same hour loses $0.30 before overhead, and leave and super flow-ons push it further.
Put every labour cost into the test
The wage rate is only the first line. Build the cost stack from payroll and roster records:
- ordinary wages by classification;
- evening, weekend, public-holiday and overtime penalties;
- allowances that apply to the work;
- annual leave, personal leave and long-service leave accruals;
- superannuation and payroll tax where applicable;
- workers compensation insurance;
- paid travel between participants and kilometres not separately recovered;
- supervision, handover, training and required documentation;
- rostering and service coordination directly attached to delivery; and
- paid cancellations, short-notice gaps and unfilled time.
Use actual roster mix. A weekday base-rate average hides services delivered on weekends or by employees at different classifications. Your payroll process should let finance reconcile paid hours and on-costs to the service-line view.
Contribution margin means the revenue left after costs that move with delivery. It is not the organisation’s final surplus. Rent, governance, finance, technology and general leadership still have to be funded from what remains.
A worked example shows where the pressure sits
Suppose one service can claim $70 per delivered hour. This is an illustrative figure, not an NDIS price limit.
- Direct wage and penalties: $42.00
- Leave and superannuation: $8.40
- Travel and kilometres: $4.80
- Supervision and service coordination: $5.60
- Cancellations and unfilled paid time: $3.20
- Total delivery cost: $64.00
- Contribution per delivered hour: $6.00
- Contribution margin: 8.6%
If the relevant direct wage component rises by 15%, the $42 line becomes $48.30 before any flow-on effect to leave or superannuation. The service moves from a $6.00 contribution to a loss before overhead. The exact result depends on employee classification, roster mix and claim rules, and the uplift is lower for employees at Levels E.4.2 and E.5.2.
That is the trap. Applying 15% to the whole cost base overstates the direct calculation. Applying it only to the base hourly rate understates the flow-on cost. Model the affected wage components, then recalculate related on-costs. Now that the determination is published, work from the actual new rate for each classification rather than a blanket percentage. The 15% is a headline, not an input.
Rank services by percentage and weekly cash effect
A low percentage matters, but volume determines how quickly it reaches the bank account. Put both measures on one page.
| Service line | Revenue per delivered hour | Cost per delivered hour | Contribution margin | Weekly delivered hours | Weekly contribution |
|---|---|---|---|---|---|
| Service A | actual | actual | calculated | actual | calculated |
| Service B | actual | actual | calculated | actual | calculated |
| Service C | actual | actual | calculated | actual | calculated |
Protect
Positive margin and material weekly contribution.
First move: hold coding and claim discipline; grow delivered hours.
Repair
Thin margin with a workable redesign path.
First move: reshape roster, travel and group mix; re-test monthly.
Act now
Negative margin or rapid weekly cash drain.
First move: assign an owner, a due date and one of the four action paths.
Add one more column: confidence in the data. A line with clean claims, payroll and roster coding can support a decision. A line built from broad averages needs investigation first. Reporting and insights should show the calculation beside actual results each month, with exceptions investigated rather than averaged away.
Run three cases, then look at 2027
The December rates are settled, and the October 2027 classification structure and transition are now defined. What is left to model sits mainly in funding, roster mix and utilisation, plus the 2027 dollar rates once the 2027 Annual Wage Review is applied.
Case 1: current rates
Keep current wage rates and current delivered-hour patterns. This is the baseline and should reconcile to recent actuals.
Case 2: confirmed December rates
Apply the published Schedule E rates to affected classifications from the first full pay period on or after 1 December 2026, and recalculate leave, superannuation and other linked costs. Hold the current NDIS claim limit unless an official update says otherwise. The Commission has not been given a funding commitment, so assuming price relief is a decision you should make consciously rather than by default.
Case 3: operational stress
Use the December rates, then add a realistic deterioration in cancellations, travel recovery or roster utilisation. This shows which service lines only work when every operational assumption lands perfectly.
Then extend the horizon to October 2027
The remaining increase accompanies the new classification structure from each employee’s first full pay period starting on or after 1 October 2027, alongside the translation of employees into that structure and the revocation of the equal remuneration order. Model both translation paths rather than one blended figure: currently around 1.97% to 6.97% where the work translates as home care disability work, and up to about 17% where it translates as disability support work. Treat both as provisional, because the final 2027 dollar rates will be updated for the 2027 Annual Wage Review. A service line that is marginal after December will not recover on its own. Carry the second step into the same model now, while there is time to do something about it.
For each case, show contribution margin, weekly cash effect and the date unrestricted cash crosses the board’s minimum threshold. Put the assumptions beside the result.
Give every weak service line an action
The spreadsheet is not the decision. Each weak line needs an owner, a due date and one of four action paths.
Redesign
When: the cost problem is roster-shaped.
First move: Change roster shape, geography, group mix or scheduling while protecting participant outcomes.
Renegotiate
When: terms, not delivery, set the loss.
First move: Review valid funding, service agreements, travel recovery and contract terms.
Reduce exposure
When: the economics may improve but not yet.
First move: Cap growth or redeploy capacity until the delivered-hour numbers recover.
Exit safely
When: no workable path exists.
First move: Plan an orderly transition covering participant continuity, workforce obligations and notice.
Financial modelling does not decide what is lawful, clinically appropriate or fair to participants and employees. Confirm award interpretation and employment obligations with qualified HR or legal advisers. Confirm current NDIS pricing and claiming rules from official sources.
Some services may be retained despite a weak standalone margin because they are essential to participant outcomes or connected to a viable service pathway. Make that subsidy explicit. Name its weekly cost, funding source and review date. Hidden cross-subsidy is how mission decisions turn into cash surprises.
What to do between now and 1 December
This is the part that changed most. The interim date was provisional until 11 September, so many providers were waiting. There is now a defined window, and it is long enough to act in and short enough to matter.
- By the end of September. Separate Schedule E work from Schedule B work in your roster and payroll data. Build the first service-line table and reconcile valid claims to participant-facing hours actually delivered.
- By mid-October. Load the full labour stack from payroll and rosters, including penalties, allowances, leave, superannuation, travel and paid cancellation time. Apply the published December rates by classification.
- By the end of October. Run the three cases and the 2027 horizon. Rank every service line by contribution margin and weekly cash effect, and note your confidence in the underlying data for each one.
- Through November. Give each weak line an owner, a decision date and one of the four action paths. Renegotiation of service agreements and funder conversations take longer than roster changes, so start those first.
- First full pay period on or after 1 December. New rates apply. Reconcile the first full pay run against your model and investigate the variance while it is small.
The first version of the table will expose missing coding and operational data. Fixing those gaps now is part of the work, and it is the part that cannot be done in the last fortnight.
If your team needs a clean reporting foundation and a partner to turn it into decisions, book a discovery call.
Frequently asked questions
Is the SCHADS Schedule E rise final?
Yes. The Fair Work Commission issued its final decision and determination on 11 September 2026. The interim increase commences on 1 December 2026, deferred from 1 October 2026, and applies from each employee’s first full pay period starting on or after that date. Employees at Levels E.4.2 and E.5.2 receive 14.96% and 13.31% rather than 15%. Confirm your own classifications and obligations with qualified workplace advisers.
What happens on 1 October 2027?
The new classification structure commences on 1 October 2027 and takes effect for an employee from the first full pay period starting on or after that date. Schedule E is abolished at that point. Personal care for a person with a disability becomes disability support work wherever it is delivered, and only domestic assistance and home maintenance remain home care disability work. The two paths translate differently: currently about 1.97% to 6.97% for home care disability work, median about 3.7%, and up to about 17% for disability support work, both measured on top of the December rate. Final dollar rates will reflect the 2027 Annual Wage Review. There is no second interim step before then.
Does the deferral mean funding has been sorted out?
No. The Commission deferred the start date partly because no funding commitment had been made by the Commonwealth and providers need time to engage funders and renegotiate service agreements. The wage obligation is now fixed. Any price relief is a separate question and should not be assumed in a model.
Which NDIS price limit should a provider use?
Use the current official price limit for the exact support item, location, delivery setting and participant circumstances. Use actual valid claims to calculate realised revenue per delivered hour.
What is contribution margin by service line?
It is service revenue less the costs directly required to deliver that service. It shows what remains to fund organisation-wide overhead and reserves. It is not the final operating surplus.
Should travel and cancellations be included?
Yes. Include paid travel, unrecovered kilometres, paid cancellation time and unfilled roster gaps. Separate amounts that are validly claimable so revenue and cost are not double counted.
Can a provider keep a loss-making service?
Yes, where leadership makes an explicit mission decision and identifies how the service will be funded. Record the weekly subsidy, source of unrestricted funds and review date rather than allowing an invisible cross-subsidy.
The figures in this article are illustrative and are not financial, workplace or legal advice. Award rates, NDIS price limits and claiming rules can change. Confirm current settings with official sources and qualified advisers. Contribution margin depends on accurate service, claim, roster and payroll data, and does not include every organisation-wide overhead.
