Temporary vehicle allowance boost to support disability and aged care workers driving between clients
The Fair Work Commission has temporarily raised the vehicle allowance under the SCHADS and Aged Care Awards to $1.05 per kilometre to help care workers cover rising fuel costs.
For thousands of disability support workers and home care staff across Australia, getting behind the wheel is a daily need. Driving between client visits, transporting people to community activities, or picking up essential supplies costs real money. Recently, high petrol prices have put a heavy strain on personal budgets.
To provide relief, the Fair Work Commission (FWC) has introduced a temporary increase to vehicle reimbursement rates for care sector staff.
From the first full pay period on or after 1 September 2026, the vehicle allowance under both the Social, Community, Home Care and Disability Services Industry (SCHADS) Award and the Aged Care Award will rise from $1.01 to $1.05 per kilometre.
Why the extra support matters now
Travelling between homes and support settings is a core part of direct care delivery. Many support workers log tens or even hundreds of kilometres each week using their personal vehicles to ensure participants receive uninterrupted care.
When fuel prices change rapidly, frontline workers absorb those extra operational costs directly out of their own pockets.
Recognising that the care workforce is predominantly made up of low- and middle-income earners who rely heavily on personal transport for work, the FWC determined that targeted relief was necessary to make sure workers aren’t left out of pocket simply for doing their jobs.
How long the increase will stay in place
The four-cent per kilometre increase is a temporary measure designed to provide immediate relief while broader market conditions fluctuate.
- Start Date: Applies from the first full pay period on or after 1 September 2026.
- End Date: Scheduled to remain in effect for six months, concluding on 28 February 2027.
- New Rate: $1.05 per kilometre (up from $1.01 per kilometre).
The temporary status means the allowance will revert to its standard review mechanisms once the six-month period ends, unless further decisions are made by the Commission.
What you need to do
If you use your private vehicle to travel between clients, transport participants, or run work errands under the SCHADS or Aged Care Award, make sure your employer updates your kilometre rate from September.
For care workers
Keep accurate logbooks or travel records of all authorised work journeys to ensure your reimbursements reflect the updated $1.05 rate. Note that standard travel from home to your first client, or from your final client back home, remains exempt from vehicle allowances under award rules.
For service providers
Update payroll systems and expense claim processes to automatically calculate the new rate for all eligible travel starting in the first full pay period on or after 1 September 2026.