The Annual Wage Review
The Annual Wage Review is conducted by the Fair Work Commission Expert Panel under section 285 of the Fair Work Act 2009. It reviews the National Minimum Wage and all modern award minimum rates, including the Aged Care Award MA000018 and the SCHADS Award MA000100.
For aged care direct care workers, the Annual Wage Review determines increases to base award rates. However, many direct care workers are paid above the base award minimums as a result of the Aged Care Work Value Case. The Annual Wage Review increase applies to those base rates; the work value case rates may be separately updated. The interaction between these two processes matters for whether any particular worker's pay changes on 1 July.
Regulatory reference
Fair Work Act 2009, s.285 (Annual Wage Reviews). Aged Care Award MA000018 (residential care workers). SCHADS Award MA000100 (home care workers). Aged Care Work Value Case determinations: Fair Work Commission proceedings 2022 to 2024-25.
When new rates take effect
Increases from the Annual Wage Review take effect from the first full pay period on or after 1 July 2026. The actual implementation date varies by pay cycle.
A worker paid fortnightly whose pay period starts on 30 June will see the increase from 14 July, not 1 July. A worker on a weekly cycle whose period starts on Tuesday 1 July sees the increase immediately. The obligation is to pay the new rate from the first full pay period that begins on or after 1 July, not necessarily from 1 July itself.
| Pay cycle | Pay period starts | New rate applies from |
|---|---|---|
| Weekly | Monday 29 June | Monday 6 July |
| Weekly | Tuesday 1 July | Tuesday 1 July |
| Fortnightly | Monday 22 June | Monday 6 July |
| Fortnightly | Monday 29 June | Monday 13 July |
Examples only. Check your actual pay period calendar. Paying the old rate beyond the first applicable pay period is an underpayment, regardless of when the FWC decision was published.
What needs updating
Once the FWC decision is published (typically June), work through this checklist before the first pay period at the new rate.
Pay rates in your payroll system
Update every Aged Care Award and SCHADS classification level your organisation uses. If your payroll system applies penalty rates as multipliers, confirm the multiplier is being applied to the new base rate. Cached or manually entered rate tables are a common source of underpayment after a July update.
Base rates in any rostering software that calculates estimated shift costs
If your rostering tool uses pay rate references to estimate labour costs per shift, those references need to reflect the new rates. A tool showing shift costs based on last year's rates produces systematically understated cost data.
Enterprise agreement rates
Enterprise agreement rates must stay above the applicable award minimum at every classification level after the increase. After a July increase, re-check that your EA still passes the Better Off Overall Test. If it does not, you must pay whichever is higher.
Employment contracts where rates are expressed as a specific dollar figure
Contracts that state a specific hourly or annual rate must be checked against the new minimums. A contract that locked in a dollar figure in 2024 may now sit below the 2026 award floor. The award minimum overrides the contract.
Casual loading calculations
Casual loading is a percentage applied to the base rate. When the base rate increases, recalculate the casual loading amount from the new base. A common error is updating the base rate in one place and leaving cached casual loading amounts unchanged.
The work value case interaction
If your workers are paid above the base award as a result of the Aged Care Work Value Case, you need to check whether the Annual Wage Review increase is absorbed by the existing above-award payment or whether it lifts rates further.
The question to answer: does your current rate (inclusive of work value case adjustment) already exceed the post-review rate? If so, no change is required. If not, the worker must be lifted to the new minimum.
Common error: Applying only the Annual Wage Review percentage to base award rates and ignoring the work value case rates entirely. For direct care workers, the operative minimum is the work value case rate, not the base award rate. Check the FWC's published determinations for the Aged Care Work Value Case to confirm which is higher.
Refer to the Fair Work Commission's published determinations for the Aged Care Work Value Case for current operative rates. fwc.gov.au
Historical context
The figures below are from public sources and are indicative. The Fair Work Commission's published determinations are the authoritative source.
| Year | AWR increase (approx.) |
|---|---|
| 2022 | 5.2% |
| 2023 | 5.75% |
| 2024 | 3.75% |
| 2025 | TBC by FWC |
| 2026 | TBC by FWC |
Confirm figures with the Fair Work Commission. These are indicative figures from public sources; the Commission's published determinations are authoritative.