31/08/2026
Vehicle allowance increase for SCHADS and aged care employers
A quick payroll update for employers covered by the SCHADS Award or Aged Care Award.
From the first full pay period starting on or after 1 September 2026, the vehicle allowance increases from $1.01 to $1.05 per kilometre.
The allowance applies when an employee is required and authorised to use their own vehicle in the course of their duties. This can include travelling between clients or work locations, but does not generally include the employee’s ordinary trip between home and work.
The increase is temporary and is currently due to apply until 28 February 2027.
If this affects your business, please:
• update your payroll or expense claim system
• let affected employees know
• check that work-related kilometres are being recorded
• diarise 1 March 2027, when the temporary increase is due to finish
You can check the updated provisions in the relevant Award