The Fair Work Commission review

An update on the Fair Work Commission’s (FWC) gendered undervaluation review, the Commission’s preliminary decisions, implications for the sector, and how VCOSS is responding.

The Fair Work Commission’s gendered undervaluation review

On 7 June 2024, the FWC commenced proceedings to consider variations to five award classifications and minimum wage rates to remedy potential gendered undervaluation. Several of the awards considered in the review are widely used across the sector; most notably, the Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award).

Provisional Decisions

In April 2025, the FWC Expert Panel issued its provisional decisions. Across each of the awards considered, the Panel proposed as follows.

• SCHADS Award: The FWC has proposed that the five separate classification structures of the Award be amalgamated into a single, simplified classification structure based on the ‘Caring Skills’ benchmark rate, which formed the basis of the recent changes to the Aged Care Award.
• Children’s Services Award 2010: The FWC has proposed that a new, simplified classification structure be introduced, based on the Caring Skills benchmark rate. This could mean increases in wages for workers of between 9% and 28%.
• Health Professional and Support Services Award 2020: The FWC has proposed that a new, simplified classification and minimum wage rate structure be introduced. The proposed structure would have varied impacts on wages, including increases of up to 31% for some roles.
• Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Services Award 2020: The FWC has proposed the reclassification of dental assistants into existing award structures and a new classification structure for dental/oral therapists. These changes would represent pay increases of between 11% and 35% for in-scope workers.

The FWC has also decided that the minimum wage rates for the Pharmacy Industry Award 2020 will be increased by 14.1%, to be implemented in three phases from 30 June 2025, 30 June 2026 and 30 June 2027 respectively.

Many of these proposed changes will impact VCOSS member organisations. Government funding, both state and federal, will be required to enable implementation. VCOSS is committed to advocating to government to commit to funding any wage increases that result from this process.

VCOSS analysis of provisional decision on SCHADS Award classification structure

The FWC’s provisional decision is detailed in a discussion paper released in early May. It proposes that the current five classification structures (Schedule B to F), and their wage rates, be replaced with a single classification and wage rate structure, based on the ‘Caring Skills’ benchmark and rate.

VCOSS has concerns about this approach because the proposed structure may mean that rates of pay would be reduced for many roles across the sector. This risks leaving a significant number of workers financially worse off, entrenching undervaluation of community services and exacerbating existing recruitment and retention challenges.

We are also concerned that the provisional decision does not take into account the breadth, scale, diversity and complexity of community services work. We believe that significant changes to the SCHADS Award classification structure require a methodical, thorough process and an extended timeframe to enable everyone affected to have the chance to engage in the process.

Next steps and VCOSS advocacy

VCOSS has worked with ACOSS and our state and territory counterparts to write a joint letter to the FWC expressing our collective concerns and urging the Commission to:

1. Ensure a considered, detailed and methodical approach is taken to develop any new classification structure, allowing sufficient time for broad sector consultation.
2. Ensure that rates of pay are maintained or uplifted for all workers in any new SCHADS Award classification structure.

Submissions to the FWC closed on 28 May. The next phase in the FWC review process is that ‘interested parties’ will be invited to attend Consultation Conferences in June.

VCOSS will also be advocating to the Victorian Government to ensure that any future wage increases are backed with funding – as well as support for the sector to transition workers to a new classification structure, recognising the significance of this undertaking.

Questions or feedback

If you would like to know more about the review, proposed decisions or VCOSS’ plans for advocacy in the area, please contact Meg Brodie at meg.brodie@vcoss.org.au.