Pay and Cost Changes to NDIS from July 2026

While the Federal Budget announced changes to the NDIS that will see Government spending on the program reduced over the next four years, more immediate changes will apply in 2026, and that includes noteworthy updates to the SCHADS Award.

As we enter the second half of the year, take a look at award pay changes, updates to NDIS pricing and how to manage costs as a provider.

In short:

• SCHADS Award sleepover shift rules changed from 1 June 2026, affecting how shifts are structured, how overtime is calculated and how shift loadings apply.
• A 4.75% SCHADS wage increase applies from 1 July 2026.
• Home care disability workers (Schedule E) will receive an interim pay rise of approximately 15% from 1 October 2026.
• A new Final Classification Structure replaces the existing award schedules from 1 October 2027, with wage increases to apply to some workers.
• The 2026-27 NDIS Pricing Arrangements and Price Limits (PAPL) will take effect from 1 July 2026, with DSW price limits rising to reflect award increases.
• Price limit increases do not automatically protect margins. Providers need real-time visibility of labour costs at the rostering stage.
• Visualcare and Pay Cat help NDIS providers understand the true cost of every shift before it is confirmed, reducing compliance risk and protecting margins.

SCHADS Award changes: What's already in effect and what's coming

The Social, Community, Home Care and Disability Services (SCHADS) Award governs pay and conditions for most disability support workers in Australia. In 2026, the following updates will (or already) apply:

Sleepover shift changes (effective 1 June 2026)

The rules around sleepover shifts changed after 1 June 2026 as part of what is being referred to as the Jats Joint decision. These updates affect how shifts are structured, how overtime is calculated and how shift loadings apply.

The key changes are:

• Sleepovers and single shifts: A sleepover period will not be counted as a break between rostered work. Work performed immediately before and after a sleepover period will be treated as part of the same shift.
• Extended ordinary hours: Employees and employers can now agree to extend ordinary hours of work to up to 12 hours per shift, if part of the shift is immediately before and after a sleepover period, with a maximum of 8 ordinary hours in either period of work. On those shifts, overtime is payable for any extra time worked over 12 hours. Employees and employers can already agree to extend ordinary hours to 10 hours per shift under the SCHADS Award. Otherwise, shifts are 8 hours long.
• Split shift loadings: Shift loadings will be calculated separately for work periods that take place pre and post-sleepover.
• Overtime for part-time and casual staff: Employees and employers can agree to extend ordinary hours of work to up to 12 hours per shift, if part of the shift is immediately before and after a sleepover period. The maximum number of ordinary hours in either period of work is eight. On those shifts, overtime is payable for any extra time worked over 12 hours.

In light of these changes, roster or payroll managers for NDIS providers should:

• Review rostering arrangements and check how sleepover shifts are currently managed
• Update pay rules in the payroll systems
• Document agreements with staff around extended sleepover shifts
• Ensure affected stakeholders are aware of the changes

Read more: Understanding the Jats Joint decision

Wage increase and classification overhaul (from 1 July and 1 October 2026)

The Fair Work Commission has confirmed a 4.75% wage increase for SCHADS Award employees that will apply to new pay periods that commence after 1 July 2026. This is part of a broader raise in pay issued to all awards in Australia.

In addition to the general increase, a decision handed down on 1 June 2026 found that the SCHADS Award had been affected by longstanding gender-based undervaluation of the workforce. In response, the Commission is overhauling the award's entire classification structure.

Key dates providers need to know:

• 1 October 2026: Employees covered by Schedule E (Home Care, Disability Care) will receive an interim pay increase of approximately 15%, ahead of the full classification restructure (subject to final confirmation from the Fair Work Commission).
• 1 October 2027: A new Final Classification Structure (FCS) replaces the existing Schedules B, C, E and F across all streams, including social and community services, home care, crisis services and disability work.

Depending on classification outcomes and transition arrangements, some disability support workers could receive wage increases exceeding 25% under the new structure.

Steps for roster and payroll managers:

• Begin mapping the existing workforce into the new classification structures now, assessing each employee's duties, qualifications and experience ahead of the October 2026 and October 2027 commencement dates.
• Budget for increased labour costs, particularly in home care and disability support roles, and start modelling the financial impact based on updated NDIA pricing.

Team leaders and HR will also need to review or introduce performance assessment processes, as progression under the new structure revolves around demonstrated competency rather than automatic increments.

NDIS Pricing Guide Changes 2026-27

Each year, the NDIA updates its Pricing Arrangements and Price Limits (PAPL), commonly called the NDIS pricing guide, which sets the maximum rates registered providers can charge for supports and services.

Following an announcement in June 2026, the 2026-27 NDIS Pricing Schedule will take effect from 1 July 2026. Providers can now use this to inform their prices.

Support worker price limits will move

The most immediate pricing change for most providers is an update to Disability Support Worker (DSW) price limits, which are directly tied to the SCHADS Award. Following the Fair Work Commission's confirmed 4.75% wage increase from 1 July 2026, the NDIA has adjusted DSW-related price limits accordingly.

For example, the standard weekday daytime rate for a DSW Level 1 providing assistance with self-care activities has moved to $73.58 per hour nationally (the rate is different for remote or very remote workers). For the full breakdown of rates across levels, time periods, and locations, refer to the NDIS Pricing Schedule 2026-27.

As shared by the NDIS, providers must discuss proposed changes to existing service agreements with participants, and participants must agree to the changes.

A broader pricing reform agenda is underway

Beyond the annual rate adjustment, the 2026-27 year marks the second phase of the NDIA's 3-Year Pricing Workplan. This phase moves from evidence gathering into active design and reform, with formal pricing reviews underway across several key areas.

The NDIA will undertake reviews of therapy pricing, Supported Independent Living (SIL) pricing, and intermediary supports such as Support Coordination and Plan Management, with findings from the Quality Supports Pilots and annual pricing reviews helping to inform future pricing approaches.

The NDIA is also exploring more differentiated pricing models that better account for factors such as participant needs, service complexity, workforce capability and quality requirements, rather than relying solely on a single price limit across all service settings.

What this means for providers

Within the 2026-27 pricing environment, DSW price limits should rise to reflect award increases, but the margin between price limits and actual staff costs remains tight and may tighten further as SCHADS Award changes flow through.

How to stay a step ahead of NDIS Award pay and pricing changes

With SCHADS Award wages rising and sleepover pay rules changing, but NDIS price limits not confirmed to keep margins level, the difference between a sustainable service and a loss-making one is narrowing. The providers who will navigate this environment best are those who understand their true labour costs before shifts are confirmed, not after they are worked.

This is where the gap between rostering and payroll becomes a real business risk. In many organisations, the person building the roster is focused on filling shifts with available, qualified staff, and the person processing payroll applies the award rules after the fact. By then, overtime has already been triggered and the cost of that shift is locked in.

With SCHADS involving layered penalties, tiered overtime, broken shift provisions, new sleepover arrangements and allowances that all interact with each other, even small mismatches between planned and actual costs can erode margins at scale.

The Fair Work Ombudsman reportedly handled more than 75,000 enquiries in the disability support sector between 2020 and 2024, with back payments to workers totalling nearly $68 million. Many are due to genuine errors in compliance and payments, but this isn't always an excuse that can help a provider to side-step a penalty.

Visualcare and Pay Cat: Rostering and payroll working together

Visualcare is an all-in-one NDIS and home care management platform that brings rostering, timesheets, invoicing and claiming together in a single system.

When workers clock in and out via the Visualcare app, their shift data flows directly into timesheets, removing manual entry and the errors that come with it. Rosters are matched to care plans, NDIS claims can be submitted in a single click, and financial data syncs with your accounting platform so the back office stays in order with reduced administrative overhead.

To make rostering and payroll management even easier for care providers, Visualcare has now partnered with Pay Cat, a specialist payroll compliance tool trusted across the care sector for its deep understanding of SCHADS Award interpretation. Together, the two platforms are working to bring award cost visibility to the rostering stage, so providers can understand the true cost of a shift before it is confirmed, rather than discovering the impact at the end of a pay cycle.

As award rates rise and pricing arrangements evolve through 2026 and beyond, having integrated systems that reflect real costs in real time will be integral to protecting margins, meeting compliance obligations and delivering quality care.

Want to minimise the impact of rising shift costs as an NDIS provider? Request a demo from Visualcare today.

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