Award wages are increasing 4.75% from July 1. What do Providers need to do?

The Fair Work Commission has announced a 4.75% increase to modern award wages, effective 1 July 2026. 

You can read the Fair Work announcement here.

For Aged Care Providers, this means that it is worth reviewing classifications and rates across:

  • Nurses Award
  • Aged Care Award
  • SCHADS Award
 
Why Enterprise Agreements Still Need Attention

If you’re covered by an Enterprise Agreement, don’t assume this increase won’t affect you.

A common assumption is that having an Enterprise Agreement removes the need to monitor award changes closely. In reality, award increases can create situations where Enterprise Agreement rates no longer sit above the relevant award minimums.

When this happens, providers can find themselves exposed to underpayment risk without realising it.

Significant movements in award rates can reduce or eliminate the margin that previously existed between Enterprise Agreement rates and the underlying award classifications.

 
What Providers Should Be Doing Now

The wage increase does not automatically mean a provider is non-compliant.

However, it does mean now is an appropriate time to:

  • Review award classifications
  • Review Enterprise Agreement classifications
  • Compare rates against updated award minimums
  • Validate payroll interpretation and application

 

Taking a proactive approach now is far easier than managing back-payments, remediation exercises or regulatory scrutiny later.

 
How Provider Assist Can Help

Provider Assist has completed Payroll Compliance Reviews, Award Interpretation Reviews and Enterprise Agreement Alignment Reviews for aged care providers across Australia.

Our reviews include mapping Enterprise Agreement classifications to award classifications, identifying any negative variances and providing clear recommendations where action is required.

If you’d like a review to ensure your payroll is compliant, please reach out to team@providerassist.com.au, call us on 1300 419 119 or hit the button below.

Picture of Laura Pearce

Laura Pearce

Workforce Partner

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