Temporary Vehicle Allowance Increase for the SCHADS Award & Aged Care Award from 1 September 2026
From the first full pay period on or after 1 September 2026 until 28 February 2027, the vehicle allowance under the Aged Care Award and SCHADS Award will increase from $1.01 per km to $1.05 per km.
The Fair Work Ombudsman stated this temporary allowance is to maintain a fair minimum safety net for employees under these awards because they often use their own vehicles to perform work and in consideration of the increased fuel costs.
What should employers do?
Where employees use their own vehicle to perform work, employers should:
ensure employees paid award rates receive the increase;
where employees are paid above award rates, check your calculations to ensure their remuneration absorbs the increase (provided the employee has a properly drafted set-off clause or individual flexible arrangement in place) and if not, top up the employee’s remuneration for each pay cycle or at least monthly;
consider discussing the increase with employees and inform them how the business is addressing it.
If you are an employer in the SCHADS or Aged Care industry and you have any questions about this change or, would like a contract review of your employment contracts, please reach out to Jade at reception@jeslegal.com.au or call 07 4599 3009.
This article is general information only and does not constitute legal advice. It does not take into account your own situation. For legal advice for your business, please reach out to reception@jeslegal.com.au