SCHADS Award Rates 2026 for NDIS Providers
SCHADS Award rates determine NDIS support worker pay across Australia. Get them wrong and you face Fair Work claims AND margin compression. We track SCHADS carefully at Enrichment Care because they directly determine our worker cost line. Here are the 2026 rates and what they mean for provider economics.
The 2026 Casual Base Rates
SCHADS Award rates increased 3.8% in July 2025, taking effect for 2026. Casual personal care worker Level 1 base rate: $34.10/hr (was $32.85 in 2025). Level 2 base rate: $35.40/hr. Level 3: $37.10/hr. Permanent (full-time/part-time) workers earn lower hourly rates but receive leave entitlements. Most NDIS providers employ casuals at the higher hourly rate to maintain rostering flexibility. The annual SCHADS increase is set by Fair Work Australia's Annual Wage Review - providers can't negotiate around it.
Penalty Rates That Determine Real Cost
Casual penalty rates apply on top of base rates. Evening (after 8pm weeknights): 15%. Saturday: 50%. Sunday: 100%. Public holiday: 150%. So a Level 1 casual working a Sunday earns $34.10 x 2 = $68.20/hr base. NDIS pricing also has weekend/evening rate uplifts but they don't always match worker cost increases. From our experience at Enrichment Care - tracking effective worker cost across penalty hours is critical to margin management. Many providers run weekend shifts at thin or negative margin without realising.
The On-Costs Reality - Add 30%
Hourly rate is only part of the worker cost. On-costs add ~30% to wage costs: superannuation guarantee (11.5% rising to 12% from July 2026), leave loading and accrual, workers compensation premiums, payroll tax (above thresholds), training time. So a Level 1 casual at $34.10/hr base actually costs the provider $44.33/hr fully loaded. Most providers we work with through Provider Scale underestimate on-costs and run thinner margins than they think. Always model fully-loaded worker cost when setting prices.
The Margin Squeeze - 2026 vs 2025
NDIS rate increases (2-3% in 2026) lagged SCHADS wage increases (3.8% in 2025). Result: margin compression for providers not adjusting. Providers absorbed roughly 1-1.5% margin reduction across most service types. Cumulative effect over 3-5 years is significant. Strategic responses: improve worker utilisation (more billable hours per worker), reduce overhead per hour billed, mix services toward higher-margin categories (allied health, behaviour support). Some providers raise sell rates above NDIS cap for self-managed participants - small portion but possible.
Action Items for Margin Protection
This quarter: 1) Update your payroll software with 2026 SCHADS rates if not done. 2) Recalculate fully-loaded worker cost per service line. 3) Compare against current sell rates - identify margin-eroding service categories. 4) Plan service mix shifts toward higher-margin categories where possible. 5) Subscribe to Fair Work Annual Wage Review updates so you anticipate the next change. Provider Scale's strategic consulting helps providers manage margin through reform. The wage trajectory is upward - providers who actively manage margin survive, those who don't compress over time.