11 December 2025
Latest News
On Wednesday 10th December the Fair Work Commission (FWC) released the final determination on the Children's Services Award 2010 ("the CSA"), as part of the gender-based undervaluation – priority awards review.
This is the final step in the review process of the CSA, following the draft determination which was issued in April 2025.
This review, which began in June 2024, includes the review of five modern award classifications and minimum wage rates, to address any potential gender-based undervaluation.
The CSA is the first award to have a final determination issued, with the decisions for the remaining awards unlikely to take place until 2026.
Following the release of the draft determination in April, the Australian Childcare Alliance (ACA) and other interested parties have worked with the FWC to identify any practical or implementation issues arising from the draft determination.
The ACA developed a consensus position on the draft determination, with all parties agreeing to amend the draft on all issues, with the exception of the commencement date and the approach and timeline for phasing in the scheduled increases.
As outlined by the FWC in section 23 of the Decision document:
“The ACA’s position, which involves a well-thought-out transition process, broadly aligns with our provisional view, from which we have not been persuaded to substantially depart. Its timetable for completion is slightly compressed compared to the five years that we had proposed, but we see no reason to not to adopt it if the ACA’s employer members regard it as appropriate and viable. No party disagreed with the ACA’s methodology for the translation process.
Accordingly, we have decided to adopt the ACA’s position concerning operative date and phasing-in, with the exception of the operative dates for increases after 1 March 2026. For the reasons given in the Stage 2 Aged Care reasons for decision11 and to maintain the alignment we have established with the Caring Skills benchmark rate in other modern awards, we have decided that increases after 1 March 2026 should operate from 30 June in each year, rather than 1 July.”
The ACA believes the amendments made will help facilitate a smoother implementation process.
The outcome for Early Childhood Education and Care (ECEC) employers will vary, depending on a range of factors such as whether the service provider is in receipt of the Worker Retention Payment (WRP) or not, and if so, which workplace instrument they currently have in place.
The Department of Education is expected to issue new wage tables reflecting the different WRP implications.
Whilst the determination has now been released, there is no need for employers to rush to action in 2025.
The first change takes effect on 1 March 2026 which will lift the minimum award rates by 5% and change the classification structures in the award. Each subsequent increase until the increases are fully implemented will occur on June 30 of each year commencing in 2026. For those service providers already paying the Worker Retention Payment (WRP) there will be no additional cost impact on wages as the increases will be absorbed into the WRP.
The ACA has updated all of its members on this industrial relations announcement, and will provide clear and practical guidance covering all arrangements in early 2026 to assist implementation in their services.
ACA members will have a range of free tools available to them, including their ongoing access to our Workplace Advice Line. Meanwhile ACA members and non-members will have ongoing access to our free Worker Retention Payment (WRP) Support Service.
The ACA looks forward to providing assistance and guidance during the implementation of this change, to ensure a smooth transition for all Early Childhood Education and Care (ECEC) service providers.
Read the Fair Work Commission's Court Decision here.
Read the Fair Work Commission's Court Determination here.
