NDIS Pricing vs SCHADS Pay: Why the Numbers Don’t Automatically Add Up
NDIS Pricing vs SCHADS Pay: Why the Numbers Don’t Automatically Add Up
Information only | NDIS providers, support coordinators, business owners and disability-sector professionals
Running an NDIS business can sometimes feel like managing two different financial systems at the same time.
On one side, there is the NDIS pricing framework—including the pricing schedule, support catalogue and applicable price limits.
On the other, there is employment law, including the Social, Community, Home Care and Disability Services Industry Award, commonly known as the SCHADS Award.
The critical point is this:
An NDIS price is not the same thing as an employee's wage.
And treating the two numbers as though they are interchangeable can create significant problems for disability providers.
The challenge for providers is not simply understanding what they can charge.
It is understanding whether the price they can legitimately claim provides enough revenue to sustainably deliver the service after employment costs, leave, superannuation, workers compensation, insurance, administration, training, supervision, travel, technology and other operating expenses are considered.
This article explains the issue at a high level.
It is intended as general information only and should not be treated as legal, industrial relations, accounting or financial advice.
The fundamental misunderstanding
A common mistake is to look at an NDIS hourly price and think:
“If I can claim $X per hour and pay my worker $Y per hour, the difference is my profit.”
That calculation is far too simplistic.
The amount a provider receives for an NDIS support is revenue.
The amount an employee receives under the applicable industrial instrument is an employment cost.
Between those two figures sits an entire operating model.
For example, the provider may need to account for:
ordinary wages
penalty rates
overtime
superannuation
annual leave
personal/carer's leave
public holidays
workers compensation insurance
payroll costs
recruitment
induction
mandatory training
supervision
rostering
management
compliance
quality systems
administration
technology
insurance
office costs
vehicles and travel
cancellations and unfilled shifts
professional services
incident management
record keeping.
That is why a simple NDIS price minus hourly wage = profit calculation can produce a dangerously misleading result.
NDIS pricing and SCHADS have different jobs
One of the easiest ways to understand the issue is to separate the two systems.
NDIS pricing
The NDIS pricing framework is concerned with the price of supports within the Scheme.
For 2026–27, the NDIS has published a pricing schedule effective from 1 July 2026, together with the 2026–27 support catalogue and disability support worker cost model.
The NDIS describes its pricing schedule as setting out appropriate and reasonable maximum prices for NDIS supports.
The NDIS also considers factors including wages, market conditions, supply and demand and broader economic factors when undertaking its annual pricing review.
SCHADS
SCHADS is an industrial instrument governing minimum employment conditions for covered employees.
It deals with matters such as:
minimum rates of pay
classifications
penalty rates
overtime
allowances
working arrangements
leave and other employment conditions.
Fair Work states that minimum employee pay rates under the SCHADS Award need to be checked against the applicable classification and current award provisions.
The current award contains different classifications and pay points, meaning that there isn't one universal “SCHADS hourly rate” that applies to every disability support worker.
These systems interact financially, but they are not the same system.
The trap: confusing the billing rate with the wage rate
Consider a simplified example.
A provider may have an NDIS support with an allowable maximum price of $100 per hour.
That does not mean the provider has $100 available to pay a support worker.
Suppose, purely for illustration, that the direct employee wage cost was $40 per hour.
The provider does not necessarily have $60 of profit.
That $60 still has to potentially absorb employment on-costs and the wider cost of delivering the service.
The actual calculation might look more like:
NDIS revenue
minus
employee wages
minus
superannuation
minus
leave costs
minus
workers compensation
minus
penalties/overtime where applicable
minus
training and supervision
minus
administration
minus
insurance
minus
travel and vehicle costs
minus
management and compliance
minus
unproductive/non-billable time
equals
operating margin before other business expenses and tax.
That is a very different calculation.
Penalty rates can change the economics of a shift
Another area that can catch providers is assuming that every hour costs the same to deliver.
It doesn't.
The SCHADS Award contains provisions dealing with overtime and penalty rates, and the applicable cost can depend on the circumstances of the work.
A weekday daytime shift and a weekend shift can therefore have materially different employment costs.
That matters because an NDIS provider may have a support price that looks attractive when viewed as a single hourly figure.
But if the support is regularly delivered at times attracting additional employment costs, the provider's actual labour cost can be substantially different.
This is particularly important when building rosters for:
Saturdays
Sundays
public holidays
evenings
overnight arrangements
overtime
higher duties
particular shift patterns.
Revenue needs to be modelled against the actual roster—not simply against an ordinary weekday wage.
Classification matters too
Another potential trap is assuming that every employee performing disability support work should simply be placed on the same SCHADS classification.
The Award contains different classifications and pay points.
Fair Work's current Award information demonstrates that classifications can have multiple pay points and different minimum rates.
The correct classification depends on the work being performed and the applicable provisions of the Award.
This means a provider should not determine its workforce costing by asking only:
“What do we normally pay support workers?”
A better question is:
“What is the legally applicable employment cost for this role, classification, shift and set of circumstances?”
That distinction matters.
The hidden cost of a “billable hour”
This is where many business models become distorted.
Imagine a support worker is paid for an eight-hour shift.
That doesn't automatically mean the provider has eight hours of equivalent productive, billable capacity.
There may be time spent on:
handovers
documentation
team meetings
training
supervision
incident reporting
mandatory compliance activities
travel
cancellations
rostering gaps
participant-related administration
waiting or availability requirements depending on the arrangement.
Some of those activities may be claimable in particular circumstances and under specific NDIS rules.
Others may not be.
The provider therefore needs to understand the difference between:
paid employee hours
and
legitimately claimable NDIS support hours.
They are not automatically identical.
The NDIS support catalogue provides guidance about claim types and includes specific information relating to areas such as travel, non-face-to-face supports and irregular SIL supports.
Cancellations can expose a weak business model
A roster can look profitable on paper.
Then the participant cancels.
The employee may still be entitled to payment depending on the circumstances and applicable employment rules, while the provider may have limited or no ability to claim the corresponding NDIS support.
This creates a classic business risk:
The labour cost remains, while the expected revenue disappears.
Providers therefore need cancellation policies, rostering processes and financial modelling that recognise the difference between scheduled work and actual delivered/claimable supports.
The NDIS pricing framework contains specific guidance concerning short-notice cancellations and claiming requirements.
The answer is not simply to pass every cost on to participants.
The answer is to understand the applicable NDIS rules, employment obligations and contractual arrangements before building the operating model.
“But the NDIS price should cover wages, shouldn't it?”
This is where the conversation becomes more nuanced.
The NDIS does consider workforce costs as part of its pricing methodology.
Its annual pricing review considers factors including wage rates and broader economic conditions.
The NDIS has also published a Disability Support Worker Cost Model for 2026–27, which is specifically relevant to understanding the assumptions behind certain pricing arrangements.
But that should not be interpreted as a guarantee that:
every provider
every employee
every shift
every location
every operating model
will produce the same financial outcome.
A pricing model is a pricing model.
A real business has its own workforce structure, utilisation, overheads, geography, participant mix and operating practices.
The “fully booked” illusion
One of the most dangerous assumptions in service businesses is:
“If we have a full roster, we're profitable.”
Not necessarily.
Imagine a provider has 100 paid support-worker hours available each week.
If only 80 hours are legitimately billable, the effective revenue generated by each paid hour is lower than the advertised NDIS hourly rate suggests.
This is why providers should monitor utilisation.
A useful management question is:
How many paid employee hours are generating legitimate revenue?
rather than simply:
How many hours are we rostering?
That distinction can materially change the economics of a service.
The real question is contribution margin
A more useful management metric is the contribution margin per delivered support hour.
For example:
Claimable revenue
minus
direct employment cost
minus
employment on-costs
minus
direct delivery costs
equals
contribution toward overheads and profit.
Only after the business has covered its broader fixed costs can the remaining amount properly be considered profit.
This is a much more useful way of thinking about NDIS sustainability.
Why underpricing can be just as dangerous as overpricing
There is an understandable focus within the NDIS on value for money.
But providers also need to understand sustainability.
The NDIS itself states that prices need to be fair, evidence-based and sustainable so participants can continue to access high-quality supports.
A provider that consistently underprices its services may initially appear competitive.
But if the pricing does not support lawful employment, appropriate supervision, training, compliance and service delivery, the model may become unsustainable.
That can ultimately affect continuity of support.
The objective should therefore not simply be:
“How cheaply can we deliver this?”
It should be:
“Can we deliver this support lawfully, safely, sustainably and in accordance with the participant's needs and the applicable NDIS rules?”
What should NDIS providers be checking?
A sensible provider review should look at both sides of the equation.
1. Check the NDIS rules
Confirm:
the correct support item
applicable price limits
claiming rules
support catalogue requirements
travel provisions
cancellation provisions
participant agreement requirements
whether the support is actually claimable.
The NDIS states that the support catalogue should be used together with the pricing schedule.
2. Check the employment rules
Confirm:
employee classification
minimum rate
penalty rates
overtime
allowances
higher duties
ordinary hours
rostering requirements
leave entitlements
superannuation
other applicable employment obligations.
Fair Work recommends using the current Award and its Pay and Conditions Tool when calculating minimum employment entitlements.
3. Calculate the real cost
Don't stop at the employee's base hourly wage.
Build the full employment cost.
4. Measure utilisation
Track:
paid hours vs delivered hours vs legitimately claimable hours.
This can reveal problems that a basic profit-and-loss report may not immediately show.
5. Review every shift type
Model weekday, Saturday, Sunday, public holiday, evening and overtime scenarios where relevant.
6. Review regularly
Both NDIS pricing and employment arrangements can change.
Fair Work notes that award minimum rates are reviewed each year, while the NDIS undertakes an annual pricing review.
A spreadsheet created several years ago should not automatically be treated as today's financial model.
A better mindset for NDIS operators
The strongest operators don't look at NDIS pricing in isolation.
They look at the entire delivery chain:
Participant need → support design → workforce → roster → employment cost → claimable support → revenue → overhead → sustainability.
Every part matters.
A business can have strong demand and still have weak economics.
It can have excellent staff and poor utilisation.
It can have high NDIS prices and insufficient margins.
It can have full rosters and significant hidden costs.
And it can have a financially sustainable model while still providing strong participant outcomes.
The numbers need to be understood together.
The bottom line
The NDIS pricing framework and the SCHADS Award serve different purposes.
NDIS pricing determines the framework around what can be charged or claimed for particular supports.
SCHADS determines minimum employment conditions and pay requirements for employees covered by the Award.
One does not simply cancel out the other.
For providers, the important calculation isn't:
NDIS hourly price – employee hourly wage = profit.
It is closer to:
Claimable revenue – total cost of lawful service delivery = actual operating margin.
That difference may look small on a spreadsheet.
For an NDIS provider operating hundreds or thousands of support hours, it can become a very significant business issue.
The providers that understand this distinction are better positioned to make informed decisions about pricing, rostering, workforce planning and service sustainability—while keeping the focus where it belongs: delivering safe, appropriate and participant-focused supports.
Important information
This article is provided for general information and educational purposes only. It is not legal, industrial relations, accounting, taxation, financial or NDIS compliance advice.
NDIS providers should check the current NDIS Pricing Schedule, Support Catalogue and applicable NDIS guidance, together with the current SCHADS Award and Fair Work requirements, before making operational, employment, pricing or claiming decisions.
Employment obligations can depend on the circumstances of the employee and the work being performed. Where appropriate, providers should obtain independent professional advice.
Information current for the 2026–27 NDIS pricing period at the time of publication.
Frequently Asked Questions
What is the difference between NDIS pricing and SCHADS pay rates?
NDIS pricing relates to the prices and claiming rules applicable to NDIS supports, while the SCHADS Award establishes minimum employment conditions and pay rates for employees covered by the Award. They interact financially but are not interchangeable.
Does the NDIS price limit equal the amount an NDIS provider can pay a support worker?
No. The NDIS price limit relates to the maximum price that may apply to a particular support under the relevant NDIS pricing rules. An employee's pay is determined under the applicable employment arrangements, which may include the SCHADS Award.
Does the SCHADS Award apply to all NDIS workers?
Not necessarily. Whether the SCHADS Award applies depends on the employment circumstances, the work performed and the relevant industrial arrangements. Providers should check the current Fair Work requirements and obtain professional advice where necessary.
Why can't NDIS providers simply subtract wages from the NDIS hourly rate?
Because wages are only one component of the cost of delivering a support. Providers may also have to account for superannuation, leave, penalty rates, workers compensation, insurance, training, administration, supervision, rostering, travel and other operating costs.
Do Saturday and Sunday shifts cost NDIS providers more?
They can. Depending on the employee's circumstances and applicable employment arrangements, penalty rates or other employment costs may apply to work performed outside ordinary hours, including weekends and public holidays.
What is SCHADS classification?
A SCHADS classification is a classification under the Social, Community, Home Care and Disability Services Industry Award that helps determine the minimum employment conditions and pay applicable to covered employees. The appropriate classification depends on the work and circumstances.
How do NDIS cancellations affect provider costs?
A cancellation can create a mismatch between expected revenue and employment costs. Whether a cancelled support can be claimed from an NDIS participant's plan depends on the applicable NDIS cancellation rules and circumstances.
What is utilisation in an NDIS business?
Utilisation generally refers to how effectively available paid workforce hours are converted into productive and legitimately claimable support delivery. Monitoring paid hours against delivered and claimable hours can help providers understand the sustainability of their operating model.
Can an NDIS provider charge above the NDIS price limit?
Where price limits apply, providers generally need to operate within the applicable NDIS pricing rules. Providers should check the current NDIS Pricing Arrangements and Support Catalogue rather than relying on historical pricing information.
Does a higher NDIS price automatically mean higher profit?
No. Revenue and profit are different concepts. The financial outcome depends on the provider's actual employment costs, utilisation, overheads, operating model and other expenses.
Where can providers check current NDIS pricing information?
Providers should refer to the current NDIS Pricing Arrangements and Support Catalogue published by the National Disability Insurance Agency (NDIA).
Where can providers check SCHADS Award pay information?
Providers should refer to the current SCHADS Award and Fair Work Ombudsman information when determining applicable minimum employment conditions and pay rates.
NDIS Pricing vs SCHADS Pay: What Is the Difference?
NDIS pricing and SCHADS Award pay rates are two different frameworks. NDIS pricing establishes pricing and claiming rules for NDIS supports, while the SCHADS Award sets minimum employment conditions and pay rates for employees covered by the Award.
For an NDIS provider, the NDIS hourly price should not be treated as an employee's available wage or as automatic profit. The actual cost of delivering a support may include wages, penalty rates, superannuation, leave, workers compensation, insurance, training, supervision, administration, travel and other operating costs.
What does SCHADS mean for NDIS providers?
The Social, Community, Home Care and Disability Services Industry Award, commonly known as the SCHADS Award, can establish minimum employment conditions for eligible employees working in disability and community services. The applicable classification, pay point, hours and circumstances can affect employment costs.
Why is NDIS pricing important for providers?
NDIS pricing determines the applicable pricing framework for supports delivered to NDIS participants. Providers need to understand the current Pricing Arrangements, Support Catalogue and relevant claiming rules when determining how supports can be delivered and claimed.
What is the key financial issue for providers?
The key issue is the difference between NDIS revenue and the total cost of lawful service delivery. A provider may receive revenue for a support while also carrying employment and operational costs that are not represented by the employee's base hourly wage.
What should NDIS providers review?
Providers should regularly review:
Current NDIS pricing limits and claiming rules
SCHADS classifications and minimum pay rates
Penalty and overtime arrangements
Superannuation and leave costs
Workforce utilisation
Participant cancellations
Travel and other delivery costs
Insurance and workers compensation
Training, supervision and administration
Overall service sustainability
In simple terms: NDIS pricing determines the applicable revenue framework; employment law determines the applicable employee obligations. Sustainable NDIS operations require providers to understand both.
This information is general in nature and should not be relied upon as legal, industrial relations, accounting, financial or NDIS compliance advice.
