Award Classification

Why this matters for your practice

Every modern award prices work by level rather than by job, so once you have picked the right award, the classification is the number everything else hangs off. The minimum rate comes from the level, and overtime, weekend and public holiday penalties, shift loadings and several allowances are calculated as percentages of that rate. An error in the level is not a small fixed shortfall: it repeats on every hour worked and grows with every penalty attached to it.

These errors are found late because nothing objects to them: payroll applies the rate for whatever level was typed into it. The procedure for finding them is our guide on how to audit your award classifications.

What a classification actually is

Classification definitions describe each type and level of work an award covers. The Fair Work Ombudsman notes they usually sit towards the end of an award, often in Schedule A, and that they set out the duties an employee at that level may perform, whether they supervise anyone, and the experience or qualifications the level assumes.

In the Health Professionals and Support Services Award (MA000027) that is exactly where they are. Schedule A runs Support Services employees from level 1 to level 9 and Health Professional employees from level 1 to level 4, with several levels split into pay points. Clause 16.1 governs movement between pay points: full-time employees progress by annual movement, part-time and casual employees after 1,824 hours of similar experience.

A level is not even fixed for the day: clause 18 pays a Support Services employee at the higher rate when they work higher duties, and a Health Professional who covers a higher classified employee for 5 or more consecutive working days is paid at that higher classification.

How an employee is classified

The employer makes the decision, and under clause 12.2 of MA000027 the employer must tell the employee their classification in writing when they start and again whenever it changes. Not every award carries that obligation, so check yours, but MA000027 does, and the written notice is the piece of evidence most often missing from a personnel file when a classification is questioned.

The Fair Work Ombudsman's method is to read each definition in full rather than by its heading, then read the levels either side to test the choice. The decision turns on the main purpose of the role and on the duties that make up the major and substantial part of the person's employment, judged by the nature of the work, the circumstances it is done in, and the time spent on each duty. Awards list indicative tasks and indicative job titles, and neither list is exhaustive: an employee may do things that are not listed, and may not do everything that is.

Classifications drift, so a review is due whenever the facts move. The Fair Work Ombudsman's triggers are a change of job or duties, more responsibility such as supervising staff, the end of any introductory period the award allows, completed training, or a new qualification.

When the structure itself changes: translation

Sometimes the award is rebuilt rather than the job, and every affected employee has to be mapped, or translated, from their old level into the new one. That is what happens to MA000027 on 1 October 2026, when a new classification structure for health professionals takes effect from the first full pay period on or after that date, under Fair Work Commission decision [2026] FWCFB 123 of 26 May 2026. The final text of the varying determination is annexed to that decision, but the determination is still pending: as at 22 August 2026 the Commission's case page lists the decision with no determination beside it, and the published award carries no 1 October 2026 variation. Map the people now and load the rates when it issues, as covered in what changes on 1 October 2026.

What the regulator or assessor expects

• A recorded classification for every award covered employee, with a short note of the reasoning: the qualification relied on, the experience counted, the duties considered, and the definition matched.
• Written notice of the classification to the employee where the award requires it, as MA000027 does.
• Pay at or above the minimum for that level, plus the overtime, penalties, loadings and allowances the award attaches to it.
• Time and wages records kept for 7 years, readily accessible to a Fair Work inspector, legible and in English, under section 535 of the Fair Work Act 2009.
• Where an annualised wage is used, the arrangement the award permits. MA000027 clause 22 allows it only by written agreement with a full-time Support Services employee at Level 8 or 9 or a Health Professional employee at Level 2, 3 or 4, and requires a stated calculation, outer limits on the hours covered, and a 12 monthly reconciliation.

Civil penalties for underpaying against a modern award reach $21,840 per contravention for an individual, $109,200 for a company with fewer than 15 employees, and $546,000, or three times the underpayment if greater, for a company with 15 or more, with ten times those amounts for serious contraventions. Intentional underpayment has also been a criminal offence since 1 January 2025. See wage theft.

Common mistakes

• Classifying by job title. There is no "practice manager" or "medical receptionist" classification, only levels, and the award follows the work.
• Never revisiting a level after a promotion, a new qualification, or duties absorbed from someone who left.
• Treating an above-award salary as a defence. More than the minimum for the wrong level can still be less than the right level requires.
• Assuming practice managers and allied health professionals are award free. Both are usually covered by MA000027, and the award free category is narrow.
• Relying on payroll software defaults. The system applies the rate for the level you enter; it does not decide whether that level is right.
• Skipping casuals and part-timers, who are classified exactly as a full-time employee doing the same work, with the casual loading applied afterwards.

Frequently asked questions

What is an award classification?

It is the level, grade or pay point in a modern award that describes the work an employee does, and it sets their minimum rate of pay. The definitions usually sit near the end of the award, often in Schedule A, and cover the duties, the supervision given or received, and the qualifications or experience assumed at each level. Penalty rates, overtime and many allowances are then calculated from the rate attached to the level.

How do I work out an employee's classification level?

Confirm which award covers them, then read the classification definitions in full and work up from the lowest level, stopping at the one that matches the work. The Fair Work Ombudsman weighs the main purpose of the role and the duties that make up the major and substantial part of the employment, judged by the nature of the work and the time spent on each duty. Read the levels either side to test your answer, then record your reasoning.

What is HPSS level 3?

Under the Health Professionals and Support Services Award, Support Services employee level 3 in Schedule A covers an employee who can prioritise work within established routines, methods and procedures, is responsible for work performed with a medium level of accountability or discretion, works under limited supervision, and needs specific on the job training or relevant experience. Receptionist is one of the indicative roles listed at that level. A level 3 also exists in the separate health professional stream, whose structure changes on 1 October 2026, so check which stream you mean.

What happens if an employee is misclassified?

The gap between what they were paid and what the correct level required is a debt owed to them, recoverable for up to six years, with superannuation and interest where a court orders it. It is rarely just the base rate, because overtime, penalties and allowances were calculated from the wrong figure too. Fair Work can issue a compliance notice, pursue civil penalties, or accept an enforceable undertaking from an employer who cooperates.

How often should award classifications be reviewed?

At least annually, whenever an employee's duties, responsibility or qualifications change, and ahead of any date on which the award's own structure changes. The classification audit guide sets out the procedure, and a recurring review belongs in your compliance calendar alongside the 1 October 2026 health professional change and the 1 January 2027 second stage for dental assistants and pathology collectors.

Does paying above the award make classification irrelevant?

No. A rate above the minimum for the level you assigned can still be below the minimum for the level the employee should have been on, and a flat rate that looks generous may not cover weekend, evening, public holiday and overtime entitlements once they are added up. If you want one figure to satisfy several award provisions, MA000027 clause 22 sets out what that takes.

Last reviewed 22 August 2026