Aged Care, Disability and Community Service Providers – Fair Work Update: Key Payroll, Award and Superannuation Changes to Watch

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Date of Change:
28 May 2026
Takes Effect:
N/A – ongoing employment law and payroll compliance obligations apply.
Southern Cross Care (WA) Inc has entered into an Enforceable Undertaking with the Fair Work Ombudsman after identifying approximately $5.4 million in underpayments, including interest and superannuation, owed to almost 2,000 staff. The matter is an important reminder for aged care, disability, community care, mental health and supported accommodation providers to actively review payroll, rostering, award interpretation, enterprise agreement and superannuation compliance, particularly with the Annual Wage Review 2026 decision now confirming a 4.75% increase to modern award minimum wage rates from 1 July 2026.

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Staying on top of compliance changes is important but it doesn’t have to be time consuming. We’ve translated this information into how it can simply be applied in your day-to-day operations and provided sample policies and procedures where applicable to help streamline this process. Save yourself hours trying determine what each change means and let us do the work for you!

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  • Following best practice processes

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Provider Institute Best Practice Tip

Don’t rely on payroll software alone. Payroll and rostering systems are only as reliable as their configuration, testing and ongoing review. Providers should regularly check that system settings match the applicable modern award, enterprise agreement, employment contracts and actual work patterns.

This is particularly important for SCHADS Award providers because sleepovers, broken shifts, minimum engagements, allowances, overtime, penalty rates, travel time, client cancellations and superannuation can interact in complex ways. Providers should test common roster scenarios, not just base hourly rates.

Providers should also prepare now for the 4.75% Annual Wage Review increase by identifying all applicable awards and enterprise agreements, checking current pay rates, planning payroll updates, and confirming who is responsible for testing updated rates before they apply.

Providers should also prepare for Payday Super by reviewing payroll frequency, superannuation data, clearing house arrangements, cash flow impacts and how payroll errors will be corrected before super payments become due each payday.

Where underpayments are suspected or identified, providers should act promptly, document the issue, seek appropriate advice, communicate clearly with affected employees and use the Fair Work Ombudsman’s payroll remediation guidance to support a structured remediation process.

Providers should consider reviewing whether they have:

  • correctly implemented the SCHADS Award sleepover changes from the first full pay period on or after 1 June 2026;
  • checked whether sleepovers are being treated correctly for overtime, rest break, shift allowance and penalty rate purposes;
  • tested payroll settings for broken shifts, minimum engagements, client cancellations, allowances, overtime and penalty rates;
  • prepared to apply the Annual Wage Review 2026 increase from 1 July 2026;
  • checked whether current above-award rates remain sufficient after the 4.75% increase;
  • identified all applicable modern awards and enterprise agreements across the workforce;
  • monitored the Fair Work Commission’s gender-based undervaluation review and any draft or final determinations;
  • prepared for Payday Super from 1 July 2026;
  • reviewed whether superannuation is being calculated on the correct ordinary time earnings;
  • checked that payroll, rostering and HR staff understand applicable awards and enterprise agreements;
  • established clear pathways for workers to raise pay concerns; and
  • ensured the governing body receives regular reporting on employment compliance risks.

Sources

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