Managing payroll correctly under complex industrial awards is crucial for NDIS providers—not only for compliance but to maintain trust and operational efficiency. Unfortunately, award miscalculations and underpayments are common and can lead to significant financial and reputational harm.
The Rising Costs of Non-Compliance
Recent investigations by the Fair Work Ombudsman highlight just how serious this issue has become. For example:
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Li-Ve Tasmania was fined $700,000.
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Breakthru Ltd faced a $2.7 million penalty.
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Disability Services Australia was hit with a $1.6 million fine.
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Wellways Australia paid $1.5 million in fines.
- Valmar record Federal Court ruling $1.9m in fines plus costs
In March 2021 alone, Fair Work recovered $43,204 in unpaid wages for 322 NDIS employees across NSW and Victoria. A record fine was handed down in
SCHADS Award: A Complex Challenge
The Social, Community, Home Care & Disability Services (SCHADS) Award is notoriously complicated and often cited as one of Australia's most challenging awards to manage.
Key complexities include:
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Multiple employee classifications and levels (1–8)
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Overtime and penalty rate calculations
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Rules for broken shifts, minimum engagement times, sleepovers, and travel reimbursements
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Specific entitlements for casual versus permanent employees
Mistakes frequently occur due to employee misclassification, confusion around shift allowances, and incorrect application of penalty rates for nights, weekends, and public holidays.
How NDIS Providers Can Improve Award Compliance
To mitigate risks and ensure compliance, NDIS providers should consider:
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Using Award-Compliant Software: Adopt SaaS payroll and rostering platforms like Platform for Care specifically designed to manage SCHADS complexities. Automated systems significantly reduce manual errors and streamline compliance.
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Regular Staff Training: Regularly educate payroll and HR teams on the SCHADS Award details, especially when changes occur.
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Internal Audits: Perform periodic internal reviews to proactively identify and rectify issues before external audits or investigations uncover them.
The Bottom Line
Effective management of SCHADS Award compliance isn't just good practice—it's essential to protect your organisation financially, operationally, and reputationally so you can stay in the business of providing care. Leveraging technology, providing ongoing staff education, and conducting regular audits are critical steps toward safeguarding your organisation against costly compliance breaches.
Stay proactive, informed, and compliant—your staff, clients, and organisation depend on it.