Quick Summary
Quick Summary
- Childcare employers must comply with the Children’s Services Award (MA000120), the Teachers Award (MA000077), National Employment Standards, and state Working with Children Check requirements simultaneously.
- Two wage increases took effect in 2026: 5% from 1 March 2026 under the Children’s Services Award, plus 4.75% from 1 July 2026 via the Annual Wage Review.
- From 1 July 2026, Payday Super requires 12% superannuation contributions paid every payday — not quarterly — reaching the fund within 7 business days.
- Every childcare employee must hold a valid Working with Children Check, with employers responsible for verifying and recording each check.
- Record-keeping under s.535 Fair Work Act is mandatory for seven years; missing records shift the burden of proof to the employer under s.557.
Australian childcare employers must navigate overlapping compliance obligations under the Fair Work Act 2009 that most general businesses never encounter. Beyond National Employment Standards, childcare operators must comply with the Children’s Services Award, verify Working with Children Checks for every employee, and meet new Payday Super requirements — all while managing two separate wage increases that took effect in March and July 2026.
Which Award Covers Your Childcare Employees?
Most childcare educators and support workers fall under the Children’s Services Award (MA000120), covering long day care, family day care, outside school hours care, and early childhood education. Early childhood teachers with teaching qualifications are covered by the Educational Services (Teachers) Award (MA000077). You must identify which award applies to each employee because classifications, pay rates, and entitlements differ between the two.
The Fair Work Ombudsman’s Children’s Services Award summary sets out who is covered. Misclassifying an employee risks underpayment claims — particularly because the Fair Work Commission restructured the Children’s Services Award classifications from 1 March 2026. For childcare employment law support, our specialist advisory team helps operators identify correct award coverage for every role.
Minimum Wage Rates for Childcare Staff in 2026
Childcare employers must apply two separate wage increases in 2026:
- 1 March 2026: A 5% increase to minimum award rates under the Children’s Services Award, part of the Fair Work Commission’s phased wage reform for the early childhood sector. Classification structures also changed for some employees.
- 1 July 2026: A further 4.75% increase from the 2026 Annual Wage Review, applying to all modern awards including MA000120 and MA000077.
From 1 July 2026, the national minimum wage is $26.44 per hour or $1,004.90 per week (38-hour week). Under the Children’s Services Award, a Level 1.1 educator starts at $26.44 per hour, with higher classifications attracting proportionally higher rates. Employers who have not updated payroll since March 2026 are likely underpaying.
📅 Compliance Deadline
From 1 July 2026, Payday Super applies to all employers — childcare services paying super quarterly are now non-compliant. Audit your payroll timing immediately.
Key Takeaways
Key Takeaways for Employers
- ✓Identify the correct award for each employee — Children’s Services Award (MA000120) or Teachers Award (MA000077)
- ✓Apply both 2026 wage increases: 5% from 1 March and 4.75% from 1 July
- ✓Move from quarterly to payday super contributions from 1 July 2026
- ✓Verify and record Working with Children Checks for all staff
- ✓Keep employee records for seven years to avoid burden-of-proof reversal under s.557
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Working With Children Check: Mandatory for Every Employee
Every person working in a childcare service must hold a valid Working with Children Check (WWCC). This is a state or territory requirement — not a Fair Work Act provision — but it is non-negotiable for childcare employers. Requirements, costs, and verification processes differ across NSW, Victoria, Queensland, and other jurisdictions.
In NSW, the WWCC costs $107 for paid workers and must be renewed every five years. Victoria updated its scheme from October 2025. Employers must verify each WWCC number online and retain records of verification. Failing to ensure all staff hold valid checks can result in licence suspension and criminal penalties.
Payday Super: New Obligations From 1 July 2026
From 1 July 2026, childcare employers must pay superannuation guarantee (SG) contributions every payday, not quarterly. The SG rate is 12%, and contributions must reach the employee’s fund within seven business days of payday. This is a fundamental shift for a sector where many services previously paid super quarterly.
Non-compliance triggers the superannuation guarantee charge — the shortfall, plus interest and an admin component — and it is not tax-deductible. Underpaying staff also carries civil penalties plus full back-payment obligations, with childcare remaining a target sector for Fair Work Ombudsman enforcement.
National Employment Standards in Childcare
The Fair Work Act 2009 sets minimum entitlements through the National Employment Standards that apply to every childcare employee: four weeks annual leave (five for shift workers), 10 days personal/carer’s leave, unpaid parental leave up to 12 months, and a 38-hour maximum weekly work week. Casual employees receive a 25% loading in lieu of paid leave.
Our HR best practice resources help childcare operators manage these entitlements accurately and stay compliant without over-administering.
Casual Conversion and Record-Keeping
Under the Fair Work Act, regular casuals can request conversion to permanent employment after 12 months. Employers must respond within 21 days and can only refuse on reasonable grounds. Download our free employment agreement templates to ensure casual and permanent contracts meet current requirements. For practical guidance, see our article on how many hours a casual can work before becoming permanent.
Under section 535, childcare employers must keep employee records for seven years — time and wages, leave accruals, super contributions, and casual conversion requests. If an underpayment claim arises and records are missing, section 557 shifts the burden of proof to the employer, meaning the employee’s account is accepted as correct. Detailed guidance is in our employer record-keeping requirements guide.
Frequently Asked Questions
Most childcare educators and support workers are covered by the Children’s Services Award (MA000120). Early childhood teachers with teaching qualifications fall under the Educational Services (Teachers) Award (MA000077). You must identify the correct award for each employee because classifications, pay rates, and entitlements differ between the two awards. The Fair Work Commission also restructured the Children’s Services Award classifications from 1 March 2026.
From 1 July 2026, the national minimum wage is $26.44 per hour or $1,004.90 per week (38-hour week). Under the Children’s Services Award, a Level 1.1 educator starts at $26.44 per hour, with higher classifications attracting higher rates. Childcare employers must also apply the 5% increase that took effect from 1 March 2026 under the Fair Work Commission’s sector-specific wage reform, on top of the 4.75% Annual Wage Review increase from 1 July 2026.
Yes. From 1 July 2026, Payday Super requires employers to pay 12% superannuation guarantee contributions every payday, with contributions reaching the employee’s fund within seven business days. Quarterly super payments are no longer compliant. Breaching this requirement triggers the superannuation guarantee charge, which includes the shortfall plus interest and is not tax-deductible.
Yes. Every person working in a childcare service must hold a valid Working with Children Check (WWCC), regardless of their role. Requirements vary by state and territory — in NSW the check costs $107 for paid workers and must be renewed every five years. Employers must verify each WWCC number online and retain verification records. Failing to ensure all staff hold valid checks can result in licence suspension and criminal penalties.
Yes. Under the Fair Work Act, regular casual employees can request conversion to permanent employment after 12 months of regular and systematic employment. Employers must respond within 21 days and can only refuse on reasonable grounds. Childcare employers, who often rely on casual staff for ratio flexibility, need a documented process for handling conversion requests to avoid disputes.
Under section 535 of the Fair Work Act 2009, childcare employers must retain all employee records for seven years, including time and wages records, leave balances, superannuation contributions, and casual conversion requests. If an employee claims underpayment and the employer cannot produce records, section 557 shifts the burden of proof to the employer, and the employee’s account is accepted as correct.
Childcare employers who underpay staff face civil penalties plus back-payment of all wages owed. The Fair Work Ombudsman recovered $453 million for workers in 2025-26 across all sectors, and childcare remains a target enforcement industry. Company directors may be held personally liable for serious underpayment, and penalty amounts increase annually with penalty unit indexation.
The National Employment Standards provide minimum entitlements to all childcare employees: four weeks annual leave (five for shift workers), 10 days personal/carer’s leave, unpaid parental leave up to 12 months, and a 38-hour maximum work week. Casual employees receive a 25% loading instead of paid leave. These entitlements apply regardless of award coverage and cannot be reduced by agreement.
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