Update on Fair Work Commission's Gender Undervaluation Review

As published and shared with ACA NSW members on 16 April 2025, the Fair Work Commission (FWC) released its provisional decision on Gender-Undervaluation that it could commence on 1 August 2025, in order to achieve pay increases (9.4% to 27.8%) and a new classification structure under the Children’s Services Award.

At the same time, the FWC also did also seek input from all stakeholders and the public before its actual decision. The FWC has since advised that the review process is still ongoing, with further hearings and consultations required before any implementation can take place.

As a consequence, the then proposed 1 August 2025 has not materialised. This is also supported by the Federal Government’s own lawyers (the Australian Government Solicitor) where its 1 August 2025 letter to the FWC proposed a staged timetable as follows:

• an initial increase of 5% from 1 January 2026;
• a further 10% increase from 1 December 2026;
• a further 5% from 1 July 2028; and
• any final increases from 1 July 2029 (with the total increase for each classification aligned to the Commission’s provisional view).

Employers and employees are encouraged to keep up to date with ACA/ACA NSW member releases, as well as Fair Work Commission updates, where new directions will be published. Although the process has been delayed, the review will continue, and outcomes are expected once final consultations are completed.

For any further information/clarification, please contact the ACA NSW team via 1300 556 330 or nsw@childcarealliance.org.au.

PUBLISHED: 19 AUGUST 2025