HPSS Award Changes 2026: Physio Clinic Guide
Updated 14 September 2026
From 1 October 2026, the Health Professionals and Support Services Award 2020 changes how covered health professionals are classified and paid.
Physiotherapy clinic owners should now confirm each employee’s qualification, profession-wide experience and actual duties, then apply the correct minimum rate from the first full pay period starting on or after 1 October 2026.
The new rates have now been published. The Fair Work Ombudsman has updated its guidance and Pay and Conditions Tool, and the 1 October 2026 pay guide is available.[1][2]
This is no longer something to leave with payroll until the next routine wage review. Before changing anyone’s rate, the clinic needs to determine the correct classification.
Practical support for clinic owners
Not confident your employee classifications are correct?
HR Excellence Partners can review your employees’ qualifications, profession-wide experience, position descriptions, actual responsibilities and current rates.
You will receive a clear classification and payroll action schedule before you update payroll or communicate changes to employees.
The central change
What is changing under the Health Services Award?
The Fair Work Commission has changed the classification structure and minimum rates for health professional employees covered by the Health Professionals and Support Services Award 2020, commonly referred to by the Fair Work Ombudsman as the Health Services Award.[1][3]
The new structure separates the classification approach for Level 1 employees from the approach applying to Levels 2, 3 and 4.
Qualifications and experience
Classification is based on the employee’s relevant Australian Qualifications Framework level and their years of experience in the profession as a Level 1 employee.
Senior and specialist roles
Classification is based on roles and duties as a senior clinician, specialist, supervisor or educator.
Advanced and management roles
Classification depends on advanced clinical, senior specialist, section management or broader management responsibilities.
The new classification structure takes effect on 1 October 2026. The new minimum pay rates apply from the first full pay period starting on or after that date.[1]
Further health professional pay increases are scheduled for 30 June in 2027, 2028, 2029 and 2030. Clinics therefore need an ongoing payroll process, not a one-off adjustment.[1]
Award coverage
Which employees may be covered?
The award covers employers in the health industry and employees who fall within its classifications. Fair Work Ombudsman guidance identifies health professional roles including physiotherapists, occupational therapists, psychologists, speech pathologists, audiologists, podiatrists, chiropractors, dietitians, pharmacists, radiographers and sonographers.[3]
For a private physiotherapy clinic, the award may also cover support roles such as medical receptionists and other administrative employees where the coverage and classification requirements are satisfied.[3]
Do not assume every person working inside the clinic has the same award coverage or classification.
- The employer’s industry
- The employee’s occupation and work
- The award coverage provisions
- The applicable classification descriptions
- Whether another award or enterprise agreement applies
- Whether the person is an employee or a genuine independent contractor
If you are uncertain which award applies, start with our guide, Which Modern Award Applies to My Employee?, and verify the outcome against the relevant award and Fair Work Ombudsman guidance.
Level 1 employees
How the new Level 1 structure works
For a Level 1 health professional, the employer first identifies the relevant AQF level. Schedule B of the amended award provides an indicative list of standard minimum qualifications for common health professions.[1]
If a profession is listed, the employee will generally be classified according to the applicable AQF level. If more than one AQF level is listed, the employee’s qualification and the qualification required for entry into the profession become relevant.
If the profession is not listed, the employer may need to consider the standard minimum qualification required for entry into the profession. Where there is no standard minimum qualification, the qualification held by the employee becomes relevant.
A higher qualification specifically required by the employer may also affect the assessment.[1]
Once the applicable AQF level has been established, the employer determines the relevant pay point by considering the employee’s years of experience in the profession as a Level 1 employee. Importantly, that experience does not have to have been gained at the current clinic.[1]
Scenario: an experienced physiotherapist joins a new clinic
Consider a physiotherapist who joined a clinic 18 months ago but had already worked for four years as a physiotherapist elsewhere.
The clinic should not classify the employee using only their 18 months of service with the current business. It needs to consider the employee’s relevant profession-wide experience under the amended classification rules.
The clinic should verify that history rather than relying on an estimate. Useful information may include a curriculum vitae, statements of service, registration history and information provided by the employee.
Higher classifications
The employee’s actual duties matter
Years of service do not determine every classification.
Under the new structure, Level 2 may apply according to an employee’s role and duties as a senior clinician, specialist, supervisor or educator.
Level 3 covers roles and duties such as advanced clinician, senior specialist or section manager. Level 4 is based on the employee’s role and duties as a manager.[1]
Within Level 2, the new structure also distinguishes between employees with less than five years’ experience and those with more than five years’ experience performing the Level 2 role and duties.[1]
Scenario: a senior physiotherapist who supervises the team
A clinic may call an employee a senior physiotherapist because they have been there the longest. The title alone does not determine the award classification.
The clinic should examine what the employee actually does and whether their responsibilities align with the award’s Level 2, Level 3 or Level 4 requirements.
- Do they supervise or allocate work to other clinicians?
- Do they provide structured clinical education?
- Are they responsible for a recognised specialist area?
- Do they make clinical or operational decisions beyond a Level 1 role?
- Does their position description reflect their day-to-day responsibilities?
This is why classification should not be treated as a payroll-only task. Payroll can apply the rate, but the business must first determine the correct classification.
Implementation checklist
What to do before the first affected payroll
Risk areas
Common mistakes to avoid
Counting only service with your clinic
Relevant Level 1 experience does not have to have been gained with the current employer.
Relying on a job title
Titles such as senior physiotherapist or clinical lead do not replace a review of the employee’s actual duties.
Assuming a salary is sufficient
A salary above the base rate does not automatically demonstrate that every award entitlement has been satisfied.
Automatically rewarding qualifications
A further qualification does not automatically guarantee a higher base rate unless it leads to reclassification.[1]
Leaving it entirely to payroll
Payroll may apply the selected rate, but it may not determine whether the selected classification is correct.
Not recording the decision
Keep a clear record of the information considered and how the classification outcome was reached.
A practical classification review
What HR Excellence Partners can review
HR Excellence Partners supports Australian SMEs that need experienced HR assistance without employing a full-time internal HR team.
- Identify employees potentially covered by the Health Services Award
- Collect and assess qualification and experience information
- Compare position descriptions with actual duties
- Map employees to the applicable classification structure
- Check current rates against confirmed minimum rates
- Prepare a practical payroll action schedule
- Update position descriptions and employment documentation
- Prepare clear employee communications
- Implement changes through Employment Hero or your existing systems
You receive hands-on HR support focused on what needs to be checked, changed, documented and communicated.
Frequently asked questions
Questions from allied health clinic owners
When do the new health professional classifications apply?
The new classification structure takes effect from 1 October 2026. The new minimum rates apply from the first full pay period starting on or after 1 October 2026.[1]
Have the 1 October 2026 pay rates been confirmed?
Yes. The Fair Work Ombudsman has updated its Pay and Conditions Tool and published the pay guide for the rates applying from the first full pay period starting on or after 1 October 2026.[1][2]
Does previous experience at another clinic count?
For Level 1 employees, the relevant pay point is based on years of experience in the profession as a Level 1 employee. The experience does not have to be with the current employer.[1]
Does a master’s degree automatically result in a higher rate?
Not necessarily. Obtaining a further qualification does not automatically guarantee a higher base rate unless it leads to reclassification.[1]
Is every senior physiotherapist automatically Level 2?
No. Level 2 classification is based on the employee’s role and duties as a senior clinician, specialist, supervisor or educator.
Can our payroll system determine the correct classification?
A payroll system may apply the rate attached to a classification, but the clinic must still determine whether the classification itself is correct.
Do the changes apply to independent contractors?
Modern award minimum rates apply to employees covered by the award, not genuine independent contractors. Describing someone as a contractor does not determine their legal status.
Are there more increases after October 2026?
Yes. Further health professional pay increases are scheduled for 30 June 2027, 2028, 2029 and 2030.[1]
Get the classification right before changing payroll
Request an allied health classification review
HR Excellence Partners can review your workforce and provide a clear classification and implementation schedule.
The review is designed for physiotherapy and allied health clinic owners who want a practical answer, supporting documentation and hands-on implementation support.
Ongoing HR support
How HR Excellence Partners supports SMEs
HR Excellence Partners provides founder-led, outsourced and fractional HR support for Australian SMEs, including growing businesses without an internal HR team.
Support includes Fair Work compliance and implementation, award classification, employment contracts and policies, performance management, employee relations, recruitment, onboarding, HR foundations and hands-on Employment Hero support.
Whether you need help with this specific award change or ongoing HR support as your team grows, the focus is on giving you clear advice and helping you implement it properly.
Vas Papadopoulos
Founder and Principal HR Consultant
HR Excellence Partners
This article provides general information only and is not legal advice. Award coverage, classification and payment obligations should be assessed against the applicable legislation, modern award, employment arrangements and individual circumstances. Minimum rates and award terms should be verified before payroll changes are implemented.
Authoritative sources
References
1. Fair Work Ombudsman
“Changes to the Health Services Award”, updated 10 September 2026.
View the Fair Work Ombudsman guidance
2. Fair Work Ombudsman
“Health Professionals and Support Services Award Pay Guide”, effective from the first full pay period starting on or after 1 October 2026.
View the official pay guide
3. Fair Work Ombudsman
“Health Services Award [MA000027]”.
View the award coverage summary
4. Fair Work Commission
“Health Professionals and Support Services Award 2020 [MA000027]”.
View the consolidated modern award
5. Fair Work Commission
“Gender-based undervaluation: priority awards review”.
View the Fair Work Commission proceedings
