S9E07 - Award Changes Are Coming. Is Your Practice Ready?

Award changes are reshaping workforce planning

One of the most significant developments for allied health businesses is the recent review of the Health Professionals and Support Services (HPSS) Award.

Although much of the attention has focused on wage increases, the bigger story may be the changes to classification levels and how occupational therapists are positioned within the award structure. The revised framework places greater emphasis on the responsibilities attached to a role rather than simply years of experience.

For many private practices, the most notable change is the inclusion of supervision responsibilities within the Level 2 classification. Therapists who supervise students, therapy assistants or other clinicians may now fall into a different classification than previously expected.

This shift creates important questions for business owners. Student supervision has long been viewed as a professional responsibility and a way of supporting the future workforce. However, if supervision activities influence classification and remuneration, practices may need to reconsider how these responsibilities are allocated and supported.

The changes are expected to commence in October, providing an opportunity for businesses to review role descriptions, employment agreements and career progression pathways before implementation.

Career progression is no longer just about experience

A common misunderstanding within allied health is that clinicians automatically progress through award levels as they accumulate years of experience.

In reality, award classifications are linked to the scope and responsibilities of a role. Leadership responsibilities, supervision duties, advanced clinical expertise and management functions all influence where a clinician sits within the award structure.

This distinction becomes increasingly important as practices grow. Not every experienced clinician will move into a higher classification, just as not every newer therapist will remain in an entry-level role. Progression is tied to responsibilities, not tenure alone.

Clear role descriptions and transparent career pathways can help both employers and clinicians understand what advancement looks like and how different positions align with award expectations.

Rising costs continue to challenge practice sustainability

Award changes are arriving at a time when operating costs are already increasing across the allied health sector.

While salary increases often receive the greatest attention, they represent only one component of the financial pressures facing businesses. Workers compensation premiums, payroll tax, superannuation obligations, insurance costs and administrative expenses all continue to rise.

For occupational therapy practices, particularly those working in paediatrics, overheads can be substantial. Assessment tools, intervention resources, sensory equipment and clinical materials represent ongoing investments that are essential for service delivery but are often overlooked in broader discussions about business viability.

As these costs continue to increase, business owners are being forced to make increasingly careful decisions about staffing structures, leadership roles and growth opportunities.

Why financial awareness matters more than ever

The reality is that many of the most significant costs in running a practice are largely invisible to clinicians.

Insurance premiums, workers compensation, payroll tax and compliance obligations can add tens of thousands of dollars to annual operating expenses. As teams grow, these costs often increase at a rate that outpaces expectations.

This makes financial literacy an increasingly important skill for practice owners. Understanding profit margins, overheads and workforce costs is no longer optional. It is essential for making informed decisions about recruitment, remuneration and long-term sustainability.

With continued uncertainty around future NDIS pricing arrangements, businesses that understand their numbers will be better positioned to adapt to whatever changes emerge.

Preparing for Payday Super

Another important change for employers is the introduction of Payday Super from 1 July.

Although many payroll systems are now equipped to manage the administrative side of these payments, the change will require businesses to think differently about cash flow. Superannuation obligations will become more immediate, reducing the flexibility that previously existed around payment timing.

For practices already managing increasing employment costs, this serves as another reminder of the importance of strong financial planning and forecasting.

NDIS uncertainty remains a significant challenge

Alongside workforce and business pressures, occupational therapists continue to navigate an increasingly complex NDIS environment.

Across Australia, clinicians are reporting inconsistencies in planning decisions, funding outcomes and documentation expectations. Reports are being returned for reasons that often appear contradictory, with different planners applying different interpretations to similar situations.

Questions continue to arise around assessment tools, report formats, assistive technology recommendations and home modification applications. In many cases, therapists are left wondering whether they are seeing a genuine policy change or simply an isolated interpretation from an individual decision-maker.

The lack of consistency can make it difficult for clinicians to determine when they should adapt their practice and when they should challenge a decision.

Looking for patterns rather than reacting to isolated decisions

One of the most effective ways to navigate uncertainty is to avoid overreacting to individual experiences.

A single unusual decision does not necessarily indicate a systemic change. However, when the same issue begins appearing repeatedly across different participants, regions and planners, it may signal a broader trend that warrants attention.

Professional networks and peer communities play a critical role in identifying these patterns. Sharing experiences helps clinicians separate isolated incidents from genuine changes in practice expectations.

Taking a measured approach can reduce unnecessary changes to templates, reports and clinical processes while still allowing therapists to respond appropriately when genuine trends emerge.

Supporting participants through an evolving system

Many clinicians are also becoming more cautious when discussing plan reassessments and funding reviews with participants.

Where there is strong clinical evidence supporting additional funding or supports, recommendations should continue to be made confidently. However, it is equally important that participants understand the potential risks associated with reassessment processes in the current environment.

Open and transparent conversations allow participants to make informed decisions while ensuring recommendations remain grounded in clinical reasoning and functional need.

Looking ahead

Occupational therapists have always adapted to change, but the current environment requires a particularly careful balance between clinical excellence and business sustainability.

The practices most likely to thrive will be those that understand both the operational realities of running a business and the evolving landscape of the NDIS. While uncertainty remains, informed decision-making, financial awareness and strong clinical reasoning will continue to provide the strongest foundation for success.

Key takeaways for OTs

• Review award classifications and role descriptions before the HPSS Award changes commence.
• Ensure supervision responsibilities are clearly defined and aligned with award requirements.
• Understand the true cost of operating a practice, including insurance, payroll tax and compliance obligations.
• Prepare cash flow systems for Payday Super requirements.
• Avoid making significant changes to clinical documentation based on isolated NDIS decisions.
• Look for patterns across multiple cases before adjusting templates or reporting practices.
• Continue making recommendations that are supported by strong clinical evidence.
• Help participants understand both the opportunities and risks associated with plan reviews and reassessments.

P.S. To join the OT Unplugged Podcast dinner, email [email protected] to reserve your spot. It will be held on Tuesday 23 June following the OTX drinks on Day 1 of OT Exchange.