NDIS and the National Minimum Wage: What to Know

The connection between NDIS (National Disability Insurance Scheme) and the national minimum wage in Australia is important for people with disabilities, carers, support workers, and providers. Understanding how the minimum wage interacts with disability support work, NDIS-funded services, and employment standards ensures every participant and worker is treated fairly. This guide covers everything you need to know about wages and work arrangements in the NDIS context, including implications for Australian migration, industry trends, common roles, costs, and recent changes. [object Object]

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What is the National Minimum Wage and Why Is It Important?

The National Minimum Wage is the lowest amount that Australian employers can pay their employees, as set by the Fair Work Commission. As of July 1, 2023, the national minimum wage is $23.23 per hour (or $882.80 per 38-hour week before tax), though many jobs in the disability sector pay higher rates.

[object Object] For disability support work and NDIS-funded services, minimum wage is not just a legal requirement but also signals fairness, quality, and sustainability of care. It affects:

• How much NDIS providers charge for support services
• The attractiveness of disability support work as a career path [object Object]
• The livelihoods of support workers, carers, and allied health professionals
• The overall quality and availability of disability supports in Australia

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How Does Minimum Wage Apply in the NDIS Context?

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For Support Workers and Carers

• NDIS-funded support workers (including personal carers, community access workers, and therapy assistants) must receive at least the minimum wage, but most are paid under the Social, Community, Home Care and Disability Services Industry (SCHADS) Award—which usually offers higher rates depending on experience, time of work (e.g. weekends/evenings), and role.
• NDIS registered providers must comply with all relevant Fair Work Australia rules. [object Object]
• If a participant is self-managing their NDIS funds and hires workers directly, they are considered an employer and must ensure minimum wage is paid.

For Allied Health Professionals

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• Professions like occupational therapists, speech pathologists, and physiotherapists are generally paid well above the minimum wage, reflecting their qualifications and responsibilities – but the minimum wage still serves as a legal safety net.
• Pricing for therapy services is mostly capped by NDIS Price Guides, but actual wages are set by employers (private practice, provider, or sole trader arrangement).

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For Plan Managers, Support Coordinators, and Others

• Admin roles like plan management and support coordination are also subject to both industry awards and NDIS price controls. The minimum wage applies, but these professionals commonly receive higher rates due to the complexity of work.

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Relevant NDIS Price Guideline

• The NDIS Price Guide specifies the maximum hourly rate providers can charge for typical support services; these are above minimum wage to allow for employment costs, administration, and quality assurance.

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How Does This Affect Australian Migration & Disability Support?

[object Object] Australia’s disability workforce includes both citizens and Temporary Skill Shortage (TSS) Visa holders, international students, and other migrants. The minimum wage and award rates are essential for:

• Ensuring that overseas workers are not exploited.
• Setting migration program requirements — for example, sponsors for TSS visas must demonstrate that employees are paid in line with or above the minimum wage. [object Object]
• Attracting skilled disability workers from abroad to address sector shortages.

Registered NDIS providers employing overseas workers must be vigilant in: [object Object]

• Paying at or above legal wage rates.
• Complying with national and migration-specific employment laws.

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Key Benefits and Features

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• Fair and transparent pay for all workers.
• Improved recruitment and retention in the disability sector.
• Clear budgeting and invoicing for NDIS participants using their funding for employment or support. [object Object]
• Protection for vulnerable workers, especially those new to Australia or the disability sector.
• Higher service quality driven by a valued workforce.

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Common Professions and Roles Affected

[object Object] Roles commonly found in the NDIS and related to the minimum wage include:

• Disability Support Worker [object Object]
• Personal Care Assistant
• Community Access Worker
• Allied Health Assistant [object Object]
• Enrolled Nurse or Registered Nurse (in community settings)
• Support Coordinator
• Plan Manager [object Object]
• Transport and Community Engagement Staff
• Behaviour Support Practitioner
• Occupational Therapist, Physiotherapist, Speech Pathologist (minimums apply but actual rates are higher) [object Object]
• Directly Employed Worker via Self-Managed Funds

List scenario: [object Object] Jane, an NDIS participant, self-manages her funding and directly hires a support worker for 10 hours/week. She must ensure the pay rate is at least the national minimum wage, but ideally matches SCHADS Award (e.g., Level 2 or 3, typically $31–$40/hr plus allowances), dependent on the role and experience.

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Costs, Duration, and Practical Scenarios

• Typical costs: NDIS Price Guide rates for support work usually range from $50–$62 per hour (as of 2024), of which $25–$45/hr may be the worker’s gross wage, and the rest covers superannuation, insurance, admin, and provider overheads. [object Object]
• Duration: Pay is per shift/hour as contracted. Most NDIS plans fund ongoing regular support—daily, weekly, or as required.
• Practical scenario: Peter receives daily assistance with personal care. His provider pays support workers award wages above $30/hour, in line with their obligations, and invoices the NDIS at the capped rate.

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Common Challenges and Solutions

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• Challenge: Lack of understanding of wage obligations for directly employed (self-managed) support workers.