Big Wage Increases Proposed for Allied Health - Here’s What You Need to Know

If you're in allied health in Australia, you've likely heard about the Fair Work Australia decision handed down on April 16th, 2025. Unless you've been hiding under a rock, you know this is big news. And understandably, there’s a fair bit of fear and uncertainty going around.

So today, I want to break it down for you, what’s actually changing, what it means for you, and how you can prepare.

🔍 A Summary of the Proposed Changes

Let’s get straight to it. The Fair Work Commission is proposing significant changes to the Health Professionals and Support Services Award.

Here’s a simplified breakdown:

🧑‍⚕️ Entry-Level Pay (Year 1):

• New base rate: ~$1,500 per week + super

• That’s up from ~$1,125 per week + super (an increase of about 29%)

• Annualised: ~$85,000 including super

📈 Second and Third Years:

• Will be amalgamated

• Weekly pay will be ~$1,526 + super

• Increase of 25–30% depending on the level

🧑‍💼 Fourth to Sixth Years:

• Also amalgamated

• Weekly pay: ~$1,660 + super

🧑‍🔬 Seven Years Plus:

• Weekly pay: ~$1,800 + super – which seems fair, in my opinion

🧑‍🏫 Proposed New Career Stages:

• Supervisor: Just under $2,000/week + super

• Manager/Senior Specialist: $2,000–$2,500/week + super

💡 Note: Psychologists are set to receive an even higher increase, around 2% more on average at entry level.

📅 Timeline for Changes

Here’s what the rollout is looking like (based on what's been published and some precedents):

• April 16, 2025: Decision handed down

• May–June 2025: Submissions open on costs and phase-in strategies

• Q3 2025: Finalised pay rates and award changes expected

• June 30, 2026 (likely): Earliest implementation date for phase-in

• Over 3 years: Based on past decisions (e.g. pharmacy), it’s likely changes will roll out in three tranches over three years

In short: we’ve got about 4 years to prepare.

And time is your friend when you're planning. If you don’t plan, you’re left reacting. But right now? You’ve got time to make proactive decisions.

🧮 What This Means For Your Budget

The 2024 minimum award wage for most allied health professionals is around $66,000 including super.

Under the new structure, that will rise to ~$85,000 including super.

But here's the thing, many of you are already paying well above the award. I did a quick search on Seek, and it’s common to see entry-level roles advertised at $80,000+ in 2025.

So, for many clinics, this won't be a 30% jump. It might be closer to a 5–10% increase over four years, a much more manageable number if you're already paying market rates.

⚠️ Where It Could Hurt: NDIS Clinics

Now here’s where it gets tricky.

If you’re a clinic operating heavily in the NDIS space, and you can’t charge a gap due to potential mandatory registration rules, you're in a tough spot.

• NDIS rates are frozen

• Costs are going up

• If you can’t charge a gap, revenue can’t go up with it

This creates a margin squeeze. And that squeeze can mean:

• Less profit

• Reduced ability to reinvest in your team

• And in worst cases… clinic closures

And that’s not good for anyone, not you, not your team, and definitely not your clients.

💬 What Should You Do?

1. Get Involved:
Talk to your professional associations. Advocate. Make submissions. Help them understand what these changes could mean on the ground.

2. Run the Numbers:
Look at your current wages. Compare them to the proposed changes. Do the maths over a four-year period and model what that means for your business.

3. Start Planning Now:
The earlier you plan, the more options you have. Whether it’s adjusting your billing model, refining team structures, or setting new revenue targets, use this lead time wisely.

🙌 Final Thoughts

We’re big supporters of better pay for allied health professionals. We believe in the value you bring to your communities.

But these changes must be implemented with commercial common sense.

If NDIS, DVA, WorkCover, CTP, Medicare, and EPC rebates don’t increase alongside wages, something’s going to break.

You can’t squeeze clinics indefinitely and expect sustainable care.

So yes, celebrate the recognition, but also prepare, advocate, and plan.

We’ll be right here with you, helping you make sense of the change and build a clinic that thrives through it.