Employment Law Update

Key changes to the Aged Care and SCHADS Awards

On 26 August 2026, the Fair Work Commission issued its decision in relation to applications made by the Australian Council of Trade Unions and a number of other unions in which they sought to permanently vary the allowance in 41 Modern Awards that is paid to employees who are required to use their own motor vehicle for work purposes.   

The Commission largely dismissed the applications, however determined that it would be appropriate to implement a temporary amendment to the Motor Vehicle allowance in two Modern Awards - theAged Care Award 2010andSocial, Community, Home Care and Disability Services Award 2010.   

The decision

The Commission concluded that because “the use of an employee’s own vehicle in the course of duties is a fundamental feature of that employment” for employees working under the Aged Care Award 2010andSocial, Community, Home Care and Disability Services Award 2010, the allowance for such use should be temporarily increased. 

The decision was made to apply the cumulative percentage increase in petrol retail prices between 1 March 2026 and the week ending 23 August 2026 (20.2%) to the automotive fuel component of the pre-1 July 2026 fuel allowance.  The effect of this is a temporary increase in the Motor Vehicle allowance in the two awards to $1.05 per kilometre.  This temporary increase will apply between 1 September 2026 and 28 February 2027.  From 1 March 2027, the allowances will go back to their previous amount. 

For ease of reference, we have set out in the table below the value of the allowances. 

Please contact the CER team if you have any questions about these changes.