Where things are at & what it means for you
If you are in this position, you may be eligible to apply for a funding review from the department.
Progress so far
- Earlier this year, the FWC gave a preliminary view on Award changes after formal hearings.
- Initially, some employer groups and the union pushed for changes that would have made things worse for providers. The Australian Childcare Alliance (ACA) strongly opposed these positions and has successfully shifted the discussion — there’s now broad support for the FWC’s original position.
- The ACA has drafted the determination to put the FWC’s decision into effect. The main issues still to be decided are the start date and how quickly the increases will be phased in.
What’s still up for debate
- Start date – ACA is advocating for 1 January 2026 at the earliest. This timing would also allow changes to line up with other regular pay increases, so providers aren’t adjusting rates multiple times a year.
- Phasing in – The Commonwealth is pushing for a faster phase-in, and the union (UWU) may support this. ACA is opposing a “fast-track” to avoid sudden cost spikes and confusion when implementing these changes alongside WRP adjustments and annual wage reviews.
Timeline
- 29 August 2025 – Parties file final submissions on outstanding issues.
- 20 October 2025 – FWC hearing to decide start date and phase-in approach.
- Decision expected later in 2025 – ACA will provide clear, practical guidance once the outcome is known.
What you should do now
- Don’t start paying new rates yet. Wait until the FWC’s final decision is made.
- If you’re on the Multi-Employer Agreement (MEA), any Award changes to classifications won’t immediately affect you.
- The ACA will send you step-by-step instructions when it’s time to implement any changes.
Why this matters for you
- Possible changes to wage rates for your team, which may impact staffing budgets.
- Clear timelines mean you can plan without last-minute surprises.
- The ACA is advocating to give you enough time to prepare and avoid unnecessary administrative headaches.
Questions?
You can reach out to our team on 1300 856 379 or via email at wrp@childcarealliance.org.au.
