2025 Disability Sector Staffing Costs: Your Complete Guide
SCHADS Award Increase: 3.5% increase to minimum wages under the SCHADS Award from July 2025
Superannuation: 12% from July 2025
NDIS Price Guide 2025–26: Key Changes
Payroll Tax in Victoria: 2025–26
How Much Should You Add to Wages to Cover All Costs?
2025–26 SCHADS Pay Rates and NDIS Charge-Out Fees
Superannuation Payment Timing: No Change for 2025–26
The disability and community services sector in Australia is navigating significant changes in 2025, with increases to the SCHADS Award, superannuation, and updates to the NDIS Price Guide. For providers, understanding the true cost of employing staff—and how to set sustainable charge-out rates—is more important than ever. Here’s a comprehensive guide to help you stay compliant and competitive.
SCHADS Award Increase: 3.5% increase to minimum wages under the SCHADS Award from July 2025
The Fair Work Commission has announced a 3.5% increase to minimum wages under the SCHADS Award, effective from 1 July 2025. This applies across all roles covered by the Social, Community, Home Care and Disability Services Industry Award.
To check the latest pay rates for different roles and qualifications, use the Fair Work Social and Community Services Industry Pay Rates Tool. Your award is the 'Social, Community, Home Care and Disability Services Industry Award (MA000100)'. You can find your award details here: https://calculate.fairwork.gov.au/FindYourAward.
To view the full legal award document, see the SCHADS Award Instrument (MA000100).
For the most up-to-date pay guide, refer to the Fair Work Pay Guide for SCHADS Award.
Superannuation: 12% from July 2025
The Superannuation Guarantee will rise to 12% of base salary from 1 July 2025. Employers must apply this new rate to all salary and wages paid on or after this date, regardless of when the work was performed. The payment schedule remains unchanged: super must be paid at least quarterly.
Important Note:
The government has proposed "payday superannuation," which would require employers to pay super at the same time as wages. This change is not yet law and is scheduled to commence from 1 July 2026, subject to legislation. For details, see the ATO Payday Superannuation page.
NDIS Price Guide 2025–26: Key Changes
Support Worker Rates: The NDIS charge out rates for disability support worker supports have increased by 3.95% from 1 July 2025.
Therapy Supports: Some therapy rates have decreased, and travel claims for therapy are now capped at 50%.
Plan Management: Setup fees and remote/very remote loadings are removed, but the monthly fee remains unchanged.
For a detailed breakdown, see the official NDIS 2025–26 Price Guide (xls).
Payroll Tax in Victoria: 2025–26
Tax-Free Threshold: Increases to $1,000,000 from 1 July 2025.
Regional Rate: 1.2125% (for employers with 85%+ of wages paid to regional employees).
Metropolitan Rate: 4.85%.
Example Calculation:
Wages: $2,500,000
Threshold: $1,000,000
Taxable: $2,500,000 – $1,000,000 = $1,500,000
Regional payroll tax: $1,500,000 × 1.2125% = $18,187.50
Metropolitan payroll tax: $1,500,000 × 4.85% = $72,750
Difference: $54,562.50 more in the city.
WorkCover Premiums
The average WorkCover rate in Victoria is 1.8% of total remuneration.
For $2.5 million in wages:
$2,500,000 × 1.8% = $45,000
How Much Should You Add to Wages to Cover All Costs?
To ensure all employment-related expenses are covered, add at least 25–30% to the base wage. This covers:
Superannuation (12%)
Payroll tax (1.2–4.85%)
WorkCover (~1.8%)
Leave entitlements (10–15%)
Overheads (admin, HR, IT, etc.)
Margin for sustainability
Example:
Base wage = $32.87/hour
Total cost = $32.87 × 1.30 = $42.73/hour
2025–26 SCHADS Pay Rates and NDIS Charge-Out Fees
SCHADS Level & Pay Point
Typical Qualification/Role
Worker’s Pay Rate (Hourly, 2025–26)
Business Costs (Hourly, 2025–26)
NDIS Charge-Out Fee (Hourly, Weekday AM)
Worker’s Pay Rate: Includes the 3.5% SCHADS Award increase for 2025–26.Business Costs: Calculated as pay rate × 1.3 to cover superannuation, payroll tax, WorkCover, leave, and overheads.
NDIS Charge-Out Fee: Standard weekday (6am–8pm) 1:1 support rate for 2025–26.
Casual Rates: For Social and Community Services Employee – Casual pay rates, refer to page 14 of the Fair Work Pay Guide for SCHADS Award.
Pay rates are based on the Fair Work Pay Guide for SCHADS Award, the SCHADS Award Instrument (MA000100), and the NDIS 2025–26 Price Guide (xls).
Superannuation Payment Timing: No Change for 2025–26
Employers must continue to pay super at least quarterly by the due dates. The only change for 2025–26 is the increase in the super rate to 12%. The move to payday superannuation is scheduled for July 2026 but is not yet law.
For the latest updates, see the ATO Payday Superannuation page.
Key Takeaways
Wages and statutory costs are rising due to SCHADS and super increases.
NDIS charge out rates have increased for support workers but not for all services.
Payroll tax and WorkCover add significant on-costs—especially in metropolitan areas.
Add at least 25–30% to base wages when setting service fees to cover all costs.
Check the latest SCHADS Award and NDIS Price Guide for up-to-date rates.
By understanding and planning for these changes, disability service providers can ensure compliance, sustainability, and fair remuneration for their workforce in 2025 and beyond.
Disclaimer
This blog is for general informational purposes only and does not constitute financial advice. I am not an accountant or financial advisor. Please use the official links provided to verify all information, and consult a qualified accountant or professional advisor before making any business or staffing decisions.
Useful Links:
Looking for work or support?
If you are looking for a Disability Support Worker role, or looking for labour hire casual staff, visit www.gsalabourhire.com.au
If you are looking for Supported Independent Living, visit www.icarenursing.com.au
