Gender-based undervaluation – HPSS awards review
The Fair Work Commission (FWC) has released its final decision on gender‑based undervaluation in the Health Professionals and Support Services (HPSS) Award. This marks a significant milestone for allied health, and the APA has been a strong and consistent voice throughout the review to ensure the interests of physiotherapists were clearly represented.
With the review now final, there are many positive elements emerging from the decision, including a phased transition timeline and clearer classification structures that strengthen transparency and consistency across the profession.
The APA has summarised the key outcomes below and considerations for practice owners. As always, we encourage members to seek personalised HR or employment law advice to understand how these changes apply to their individual circumstances.
Key outcomes from the FWC decision
Physiotherapy standardised to AQF 7
Under the new framework, physiotherapy roles will continue to be classified solely at AQF Level 7, regardless of whether an individual holds an AQF 8 or 9 qualification.
The APA advocated for recognition of multiple entry‑to‑practice pathways, and we remain concerned that physiotherapy was not treated consistently with other allied health professions, particularly speech pathology, dietetics and social work, where multiple AQF entry levels are recognised. We note that other regulated health professions, Occupational Therapy and Podiatry, also sought to have the breadth of their graduate pathways presented, though also remain classified at AQF 7 under the new award. The APA intends to seek further clarification from the FWC on what we see to be an inconsistent approach to graduate recognition.
However, an important principle in the FWC decision is the emphasis that employees performing the same role should not be paid differently based solely on qualification pathway alone. Many business owners raised concerns about the inequity this can create between new graduates entering identical roles on different salaries. Standardising physiotherapy at AQF 7 directly addresses this by ensuring:
- graduates entering the same role are classified consistently
- employers are not required to pay different rates based solely on degree type
- hiring decisions are less likely to be influenced by differing salary costs.
It’s important to remember that the Award sets minimum standards only. Many physiotherapists are already paid above Award rates, with salaries shaped by demand, experience, location and business conditions. The Award does not cap earnings or prevent employers from paying above minimums.
Implementation delayed to 1 October 2026
The new classification structure and first stage of pay increases will now commence 1 October 2026, with further increases on 30 June in 2027, 2028, 2029 and 2030. This extension provides employers more time to plan - though October will arrive quickly, and preparation should begin now.
Annual wage reviews still apply
The FWC has confirmed that the Annual Wage Review (AWR) process will continue as normal, and that AWR increases will be applied in addition to the phased Award increases set out in the gender‑based undervaluation decision.
The FWC has now handed down the 2025–26 Annual Wage Review (AWR), confirming a 4.75% increase to minimum award wages, effective from the first full pay period on or after 1 July 2026.
Importantly, the AWR increase is separate from the changes arising from the gender-based undervaluation review. Employers should therefore apply the 4.75% increase to the current HPSS Award pay structure from 1 July 2026.
The FWC has indicated it will issue a further determination updating the new classification structure and pay rates that take effect from 1 October 2026. These rates are expected to incorporate both the AWR increase and the first phase of the gender-based undervaluation adjustments.
While the Commission has not yet confirmed the final October pay rates, practice owners should begin preparing now by applying the July wage increase, reviewing employee classifications and years of experience, and planning for the transition to the new AQF-based classification structure from 1 October 2026.
The APA will continue to monitor developments and provide updated guidance once the FWC releases its revised determination and final pay tables.
The handing down of the AWR can be watched on the FWC YouTube channel or view the documents on the FWC website.
Removal of the 1,824‑hour progression threshold
The FWC has decided to remove the existing 1,824 ordinary hours progression requirement for part-time employees under the HPSS Award and this changes how incremental pay progression operates for part time staff.
In practical terms, this means:
- part-time employees progress based on tenure in the role rather than hours accrued
- part-time employees may reach higher pay points significantly earlier than under the previous system.
For the APA and the profession more broadly, there is an important balance to strike in responding to this change. On one hand, the removal of the threshold represents a fairer and more equitable outcome for many physiotherapists – particularly the part-time practitioners who form the backbone of many practices and who have historically experienced delayed progression despite ongoing contribution, experience and service.
At the same time, we recognise that this shift creates real challenges for practice owners and employers. Earlier progression for part‑time staff will increase wage costs sooner than anticipated and may require adjustments to workforce planning, budgeting and service pricing. Practices with a high proportion of part‑time clinicians may feel this impact more acutely.
The APA acknowledges both sides of this change – it is a fairer and more contemporary approach for employees, but it also requires careful financial modelling and forward planning from practice owners.
Progression based on years in the profession
Another significant change for practice owners is the move to profession-wide experience recognition, rather than progression based solely on years with a particular employer. In practice, this means physiotherapists joining a new workplace may need to be classified according to their total professional experience from commencement, regardless of where that experience was gained.
This has important implications for recruitment, workforce planning and payroll budgeting, particularly for practices preparing to hire experienced clinicians. Members may wish to review their recruitment and classification processes to ensure prior professional experience is being appropriately considered when determining pay points.
What to do now
We know members will hold differing views about aspects of the Commission’s final position. However, this decision does reflect a final decision and there is little further opportunity to advocate for change. It’s important that members now prepare for the change.
We recommend members work through these key steps:
- Review the updated Award rates from 1 July 2026: The FWC Annual Wage Review has confirmed a 4.75% increase to minimum award wages, which applies from the first full pay period on or after 1 July 2026. Employers should apply this increase to the current HPSS Award pay structure. The Commission is expected to release more information updating the new classification structure and pay rates that will take effect from 1 October 2026. Once released, these updated pay tables should be used as the basis for workforce planning, payroll forecasting and financial modelling for the transition period.
- Audit your current staffing costs against the new Award rates: use the FWC provided translation table to map each team member's current PayPoint classification to the new classification to understand your true October cost exposure.
- Please note that the uplift in rates has been calculated based on the current award wage. An updated determination will be published that incorporates the changes from the Annual Wage Review. These tables are not yet available, and members will be advised once this happens.
- When auditing your current staffing costs, existing employees as of 30 September 2026 are entitled to be paid the higher of either the new rate of pay on 1 October 2026, or their current rate of pay. Salaries for new employees must be set at or above the minimum pay rate in accordance with this new award.
- Identify part-time staff who will progress faster: the 1,824-hour threshold has been removed and part-timers now progress on calendar time like everyone else. Calculate the payroll impact.
- Review your hiring process: before your next hire, confirm you're capturing profession-wide experience accurately. An experienced physio joining your practice must be placed at the correct progression point from day one.
- Consider whether fee adjustments are required to respond to rising costs:
- Use the report, ‘Hourly rate for the provision of physiotherapy services’ to help guide your fee setting decisions.
- If you choose to increase your fees, choose your implementation date to align with the FWC October deadline so the narrative is clear, legitimate and transparent with your patients. And communicate well ahead of time with your patients so there’s no surprises.
- Map the full five-year cost trajectory – this isn't a one-off adjustment. Build the 2027–2030 phase increases into your financial forecasts now, consider what further annual fee adjustments may be required and communicate with patients proactively rather than reactively.
- Treat this as a cost-base reset, not a compliance box-tick: the practices that act early and frame fee conversations confidently will absorb this far better than those who wait and compress margins silently.
And most importantly, seek personalised advice
This information has been prepared using the best information currently available at the time of writing. However, it is intended as general guidance only and does not replace personalised advice from a qualified HR or employment relations professional.
Premium Principal members of the APA Business Group have access to HR in Practice HelpDesk – a dedicated advisory service providing practice-specific HR support and guidance.
Members who would like tailored advice in relation to the Award changes, workforce planning, employment arrangements or implementation considerations are encouraged to access the service.
If you are not currently a Premium Principal member, this service is available by joining the APA Business Group as a Premium Principal member.
To learn more or access the service:
- Call 1300 306 622 (9.00 am–5.00 pm, Monday to Friday AEST
- Email the APA team
- Explore APA Business Group membership options via the APA website.