Fair Work Commission increases vehicle allowance for aged care workers

The Fair Work Commission has approved a temporary increase in the vehicle allowance for aged care, community, and disability sector workers. Effective from 1 September 2026 until 28 February 2027, the allowance will rise from $1.01 to $1.05 per kilometre for workers covered by the Social, Community, Home Care and Disability Services Industry Award (SCHADS Award).

The decision follows applications by unions, including the Australian Services Union and the Australian Nursing and Midwifery Federation, to help workers offset rising fuel, maintenance, and travel costs. The increase is expected to provide significant relief for staff in regional and remote areas who must drive long distances to reach clients.

While ACTU President Michele O’Neil welcomed the decision as positive news for the sector, she expressed disappointment that the Commission did not extend the increase to other industries, such as retail delivery, maintenance trades, and nursing.