Effective 1 September 2026:

The Fair Work Commission (FWC) has issued a decision to temporarily increase the vehicle allowance payable under two key Awards:

• Aged Care Award 2010

• Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award)

When does the change take effect?

The new vehicle allowance rates apply from the first full pay period commencing on or after 1 September 2026.

The temporary rates will remain in effect until 28 February 2027.

These rates will temporarily replace the existing vehicle allowance rates contained within the relevant Awards. All other Award provisions remain unchanged.

What does this mean for employers?

Employers covered by the Aged Care Award or SCHADS Award should review their current vehicle allowance and kilometre reimbursement arrangements to ensure the correct rate is applied from the employee’s first full pay period commencing on or after 1 September 2026.

We recommend checking:

• payroll systems and applicable kilometre reimbursement rates;

• employment contracts or policies that reference the Award vehicle allowance;

• internal travel and vehicle reimbursement procedures;

• employee communications regarding the temporary change; and

• any NDIS service delivery arrangements where employee travel costs may be affected.

How long will the temporary increase apply?

The temporary increase is currently scheduled to operate until 28 February 2027.

The vehicle allowance is expected to revert to $1.01 per kilometre from 1 March 2027, unless the Fair Work Commission makes a further determination before that date.

Need Assistance?

Explore Potential can assist organisations to understand the change, review their current arrangements and ensure payroll and employee communications are updated appropriately.

If you are unsure whether the change applies to your workforce or what action you need to take, please contact the Explore Potential team for support.