Budgeting for July 2026: What the SCHADS and Super Increases Mean for Not for Profit Organisations

July is always a critical month for organisations in the social, community and disability sectors – and July 2026 will be no different.

With scheduled increases to the SCHADS Award and superannuation obligations, providers are once again facing higher employment costs at a time when funding, pricing reviews and workforce shortages are already placing pressure on the sector.

Last year, we saw a number of organisations struggle to absorb the increases. Some were forced to make reactive decisions around rosters, recruitment pauses or service delivery models simply because the financial impact hadn’t been fully planned for.

The good news? July 2026 doesn’t have to be a repeat of that experience.

A quick refresher: what’s changing in July 2026?

While the exact figures will depend on Fair Work determinations and final award updates, organisations should be planning for:

• An increase to SCHADS Award minimum wages, impacting frontline workers, team leaders and specialist roles

• Ongoing superannuation obligations, which remain a significant on-cost across all employment types

Even incremental increases can have a substantial flow-on effect when applied across large workforces, overtime, allowances and penalty rates.

Why some organisations struggled last year

From what we observed across the sector, the challenges in 2025 largely came down to three things:

1. Underestimating the total cost impact – focusing on base wage increases without accounting for penalties, loadings and super

2. Delayed budgeting – waiting until May or June to model the changes left little room to adjust

3. Workforce inflexibility – limited use of blended staffing models or contingent workforce solutions

The result? Tight cash flow, rushed decisions and increased pressure on already stretched leadership teams.

How to budget smarter for July 2026

Forward planning is the biggest lever organisations can pull right now. Practical steps include:

1. Model the full employment cost

Go beyond headline wage increases. Factor in:

• Penalty rates and allowances

• Overtime trends

• Superannuation on all ordinary time earnings

This gives you a more realistic view of the true cost per employee.

2. Review workforce mix early

July increases are a good trigger to review:

• Permanent vs casual ratios

• Use of agency or contract staff

• Role design and span of control

A more flexible workforce mix can help absorb cost increases without compromising care quality.

3. Build increases into pricing and funding conversations

Where possible, ensure SCHADS and super increases are reflected in:

• Client pricing reviews

• Funding submissions and contract negotiations

Leaving this too late can mean organisations end up carrying the cost themselves.

4. Avoid reactive recruitment decisions

Freezing hiring or rushing to cut hours often creates bigger problems down the line – from burnout to higher turnover and agency spend.

Proactive workforce planning reduces the risk of short-term fixes that cost more long term.

Looking ahead

Cost pressures in the sector aren’t going away, but organisations that plan early are far better positioned to manage them.

July 2026 should be a planned milestone, not a financial shock.

If last year taught the sector anything, it’s that early budgeting, realistic modelling and flexible workforce strategies make all the difference.

At HiTalent, we work closely with providers to help them think ahead – not just about recruitment, but about building sustainable workforces that can weather ongoing change.

If you’d like support planning for the 2026 increases, we’re always happy to have a conversation.