Disability Support Guide
DISABILITY support and aged care workers who use their own vehicles to travel between clients will now receive a higher kilometre allowance, as rising fuel costs continue to put pressure on frontline workers.
The Fair Work Commission has temporarily increased the vehicle allowance under the Aged Care Award and Social, Community, Home Care and Disability Services Industry (SCHADS) Award from $1.01 to $1.05 per kilometre.
The increase takes effect from the first full pay period beginning on or after September 1 and will remain in place for six months, until February 28, 2027.
While an extra four cents a kilometre may appear modest, it could add up for disability and aged care workers who regularly clock up significant distances travelling from one client to another.
Many home and community care workers rely on their own vehicles as an essential part of their jobs, travelling between clients, transporting people to appointments and community activities, and carrying out other work-related duties.
Under the SCHADS Award, employees are entitled to the vehicle allowance when they are required and authorised to use their own vehicle for work, including travelling between clients while on duty or performing tasks such as transporting food, medication or laundry for a client.
The Fair Work Commission determined a temporary increase was needed because of higher fuel costs and the significant reliance on private vehicles among workers covered by the two care sector awards.
The Commission considered applications seeking changes to vehicle allowances across 41 modern awards before ultimately approving the temporary increase for the aged care and SCHADS awards.
The Fair Work Ombudsman said the change was necessary to maintain a fair minimum safety net for employees who frequently use their own vehicles to perform their work.
For workers covering large geographical areas, particularly those providing home-based aged care and disability support in outer suburban and regional communities, vehicle expenses can represent a significant work-related cost.
Australian Council of Trade Unions president Michele O’Neil welcomed the decision, saying the increased allowance would help the payments better keep pace with fuel costs over the next six months.
Unions had sought broader increases across other industries but the Commission limited the temporary change to the two care sector awards.
Employers covered by the awards will now need to ensure payroll and expense systems reflect the $1.05 rate for eligible travel from the appropriate pay period.
Workers should also keep accurate records of authorised work-related kilometres to ensure they receive the correct reimbursement.
The four-cent increase equates to an additional $4 for every 100 kilometres of eligible travel, or $20 for a worker clocking up 500 kilometres between clients and other work duties.
The higher rate will remain in force until February 28 next year, after which the allowance will again be subject to the usual award review.
