Fair Work award increases: What dental practices should do now
Fair Work award increases: What dental practices should do now
Recent Fair Work Commission decisions mean minimum rates will increase for some employees covered by modern awards. For many awards, annual wage increases apply from the first full pay period on or after 1 July. In addition, some awards in the health sector have staged increases from 1 April 2026 as part of the Fair Work Commission’s gender-based undervaluation work.
General information only: This article provides a high-level summary of pay-rate changes that may affect some dental practices. Award coverage and classification depend on each employee’s duties and your workplace arrangements (including any enterprise agreement). Consider obtaining specific advice if you are unsure.
With FY27 budgeting now on the horizon, practice owners and managers have a timely opportunity to assess the financial impact of these changes and plan proactively to protect profitability.
Practices that prepare early are best positioned to absorb cost increases without compromising patient care or team culture.
Understanding the upcoming award changes
In dental practices, pay outcomes will depend on whether an employee is covered by a modern award, an enterprise agreement, or is award‑free. A common award in this sector is the Health Professionals and Support Services Award 2020 (HPSS Award), which covers many support services roles in health practices. The Fair Work Ombudsman has also published information about changes to the HPSS Award that take effect from 1 April 2026 for dental assistants (and pathology collectors).
- Dental assistants (check classification level, qualifications and experience)
- Sterilisation and clinical support staff (depending on duties)
- Reception and administrative roles (award coverage can vary)
- Practice administrators and treatment coordinators (award coverage can vary)
- Practice managers (may be classified at higher levels, covered by another award, or award‑free depending on seniority and duties).
Where duties have changed over time, it is prudent to review both award coverage and classification to ensure pay rates and entitlements are correct. If you are unsure about the applicable award or classification, consider obtaining advice.
Many practices already pay above the relevant award minimums. Even where current pay rates exceed the minimum, award changes can still affect penalty rates, overtime calculations, and allowances, and may influence your broader remuneration strategy in a competitive labour market.
Consider preparing a short message for your team explaining what’s changing, when it takes effect, and confirming you’re reviewing classifications and updating payroll to ensure everything remains accurate and compliant.
| CHECKlist | |
|---|---|
| Confirm whether each role is award-covered, agreement-covered, or award-free | |
| Check the correct classification level (duties, qualifications and experience), particularly for dental assistants impacted by the 1 April 2026 changes | |
| Update payroll systems for new minimum rates and review flow‑on items (overtime, penalties and allowances) | |
| Keep a dated record of what was checked and what was changed, and communicate the timing of any updates to affected employees |
How wage increases flow through to practice profitability
Labour is one of the largest cost centres in any dental practice. Even a modest increase in hourly rates can have a meaningful impact once multiplied across:
- Rosters and shift patterns
- Penalty rates
- Leave loading
- Superannuation
- Payroll tax (where applicable).
BDO advises practices to quantify the impact early. This means modelling how the new rates affect your current roster, identifying where costs will rise, and determining how those increases can be absorbed or offset.
A practical next step is to review your item codes and pricing structure. Once you understand the additional wage costs, you can consider measured adjustments to fees and operational settings, rather than reacting under time pressure later in the year.
Planning for FY27: Why now matters
With FY27 budgeting underway, the upcoming award changes should be considered alongside other rising costs, including:
- Consumables and clinical supplies
- Equipment servicing and replacement
- Technology and software subscriptions
- Rent and utilities
- Compliance and accreditation requirements.
A forward-looking budget and forecast will help you understand the combined effect of these pressures and ensure your pricing, staffing, and operational decisions are grounded in data.
BDO’s dental advisers regularly support practices with:
- Wage modelling and cost‑impact analysis
- FY27 budgeting and cashflow forecasting
- Pricing strategy and item code optimisation
- Benchmarking against similar practices
- Scenario planning to support decision‑making.
This holistic approach gives practice owners a clear view of their financial position and the confidence to make informed adjustments.
How BDO can support your practice
Fair Work changes provide a prompt to review wage settings and broader cost drivers. A proactive approach can help you manage margins, support staff retention, and maintain service quality.
If you would like support assessing the impact of award changes or preparing your FY27 budget, please contact our team.
