Staffing Agency Fees Explained: What You're Actually Paying For

A staffing agency rate pays for four things: the worker's award wage, the on-costs the agency carries, compliance checks and insurance, and the agency's margin. A casual-only agency charges for shifts covered. A recruitment agency adds a placement fee. Ask each agency for a written breakdown so you can compare like with like.

Key Takeaways

• An hourly agency rate is a bundle. It covers wages, on-costs, checks and insurance, and the agency's own margin, and each layer can be asked about.
• A casual-only agency has no placement fee because it does not place permanent staff. A recruitment agency usually adds one on top of the shift rate.
• Two quotes are only comparable when they list the same inclusions, so ask for a written breakdown before you book.
• Need casual aged care or NDIS staff in Canterbury-Bankstown? Call Care Steps Australia on (02) 8201 3100, Monday to Friday, 9am to 5pm.

What are you paying for when you book a staffing agency?

You are paying for a worker who is already employed, checked and insured, plus the agency work that finds, rosters and backs that worker up. The hourly rate is one number, but it is built from four layers: base pay, on-costs, compliance and insurance, and agency margin.

That is why a rate can look high next to a wage you read in a job advert. The wage is only the first layer. The agency, not you, carries the rest, and it pays those costs whether or not you book another shift.

The question most providers actually have is not "what is the rate" but "what is in it". If you run a care service in the Canterbury-Bankstown area, you may also be weighing agency cover against hiring someone yourself. Our guide on how a workforce solution works for aged care providers in Sydney shows where agency cover fits next to a permanent team. The next four sections take each layer in turn, starting with wages.

Layer 1: what is the worker's base pay?

Base pay is the award wage the worker is entitled to for the shift, and it is the largest part of any agency rate. Aged care work is covered by the Aged Care Award 2010 [MA000018]. Most disability support work falls under the SCHADS award.

Casual workers are paid a loading on top of the base hourly rate, because they do not get paid leave. Weekend, evening and public holiday shifts are paid at higher rates again. The Fair Work Commission publishes the Aged Care Award on its site, and the Fair Work Ombudsman publishes pay guides that show the current rates. Check the current figure there rather than trusting a number in a blog post, because award rates are reviewed each year. See the Aged Care Award 2010 on the Fair Work Commission site for the clause that sets casual overtime.

We do not print a dollar figure for base pay here on purpose. Rates change on 1 July, they differ by classification and shift, and any number would be out of date within months. If an agency quotes you a rate with no explanation of the award classification behind it, ask which classification and which shift type the rate assumes.

Base pay is only the start. Once the wage is set, the agency owes more than wages, and that is where the next layer begins.

Layer 2: what on-costs sit on top of wages?

On-costs are the employer costs that come with every wage dollar: superannuation, workers compensation insurance and, for larger employers, payroll tax. An agency that employs its workers pays all three, and builds them into the rate it quotes you, so none of them appear as a separate charge.

Superannuation is the one with a published number. The Australian Taxation Office states that the super guarantee rate is 12% from 1 July 2025. The ATO explains the change on its page, the final super guarantee rate increase. So for every dollar of ordinary time earnings, 12 cents must go to the worker's super fund on top.

Payroll tax is the next one. Revenue NSW lists a payroll tax rate of 5.45% with an annual threshold of $1,200,000 for both 2025-26 and 2026-27. You can check both figures on the Revenue NSW payroll tax thresholds and rates page. Payroll tax applies to taxable wages above the threshold, so whether it shows up in a given agency's rate depends on the size of that agency's payroll.

Workers compensation premiums also sit in this layer. We do not quote a figure, because premiums depend on the insurer, the industry classification and the employer's claims history.

These costs are real whether or not the agency tells you about them. The next layer is the one that is most specific to care work, because it is where a provider's duty of care meets the agency's paperwork.

Layer 3: what do compliance checks and insurance add?

Compliance adds the cost of making sure each worker is allowed to work with people who need care. For aged care, that means a valid screening check. For NDIS work in NSW, it usually means an NDIS Worker Screening Check. Both add admin time and, in some cases, a fee the agency may pay or pass on.

The Department of Health says aged care workers need an NDIS Worker Screening Check where they will work with NDIS participants at an NDIS-registered aged care provider, or a police certificate where they will not. Aged care providers also accept a valid NDIS Worker Screening Check in place of a police certificate. The Department of Health sets this out on its aged care workforce screening requirements page.

The NSW fee is published. According to Service NSW, an NDIS Worker Screening Check costs $112 for a paid worker and is free for volunteers. The clearance is valid for five years and the fee is non-refundable. Details are on the Service NSW page for applying for an NDIS Worker Screening Check. Fees change over time, so check that page before you rely on the figure.

Screening is one part of this layer. Agencies also check qualifications and identity, keep records, and hold insurance. If you are comparing agencies, our post on how pre-vetted carers and nurses are screened lists what to ask for. We cannot tell you what any agency charges for these items, because it varies, and the only reliable way to find out is to ask for the line in writing.

That leaves the one layer that nobody publishes: the agency's own margin.

Layer 4: what is the agency margin, and why do quotes differ?

The margin is what the agency keeps after paying wages, on-costs and compliance. It covers rostering, the people who answer the phone, replacement cover when a worker cancels, and profit. It is the only layer an agency sets for itself, which is why two agencies can quote different rates for the same shift.

You will see percentages quoted online for agency margins. We do not repeat them, because we could not trace any of them to a source we can check, and they come mostly from agencies selling their own service. A margin figure with no source is a sales claim, not a fact.

Instead, look at what moves a quote up or down:

• Role. A registered nurse shift and a personal care shift start from different award wages.
• Day and time. Evenings, weekends and public holidays carry higher award rates.
• Notice. A shift booked at short notice is harder to fill than one booked a week ahead.
• Location. Travel and local supply of workers can change the cost of covering a shift.
• What is included. One agency may bundle screening and insurance into the rate. Another may list them separately.

Because the margin is not published, the best way to understand it is to ask each agency for a written breakdown. That also helps you tell the difference between a shift rate and a placement fee, which is where many quotes start to look different for a reason that has nothing to do with margin.

What is the difference between a shift rate and a placement fee?

A shift rate is what you pay for hours of work a casual worker actually covers. A placement fee is a one-off charge a recruitment agency adds when you hire one of its candidates as a permanent or long-term employee. A casual-only agency charges the first and has no reason to charge the second.

Some agencies do both. They supply casual workers at a shift rate and also offer permanent recruitment, so a "temp to perm" conversion can trigger a placement fee. If you are comparing a casual-only agency with a full-service recruiter, the fee structures are not the same product.

Care Steps Australia supplies casual staff only. We do not do permanent placements and we do not charge a recruitment fee, so you pay for shifts covered. Our post on staffing agency options for disability and aged care in Sydney with no recruitment fees covers how that works. It also explains how the arrangement differs from a recruiter's.

The practical effect is simple. If you plan to hire permanently, a recruiter may suit you better. If you need to fill a roster gap this week, a casual-only agency is built for that. Either way, the fair comparison starts with asking each agency the same questions, which is what the next section sets out.

How do you compare two agency quotes?

Compare two quotes by asking each agency the same questions and writing down the answers: what the rate includes, which award classification and shift type it assumes, whether any fee applies on top, and what happens if a shift is cancelled or a worker does not turn up. A rate is only comparable when the inclusions match.

Use this table when you get quotes:

Put the answers side by side. The cheaper rate is not always the cheaper agency, because a lower number may leave out items the other quote includes. A written breakdown from each agency lets you add the missing items back in.

Once you have two comparable quotes, the next question is usually whether any agency is cheaper than hiring the worker yourself.

Is an agency cheaper than direct hire or an independent worker?

An agency is not automatically cheaper or dearer. Direct hire has no agency margin, but you carry the other layers yourself: wages, super, workers compensation, screening, insurance, and the time you spend finding and rostering people. An agency bundles those into a rate. Which costs less depends on how often you need cover.

If you need the same person every week, direct hire may suit you. If your need is irregular, such as covering leave, sick calls or a sudden rise in client hours, paying only for the shifts you use can be easier than carrying a payroll. We cannot give you a single answer, and we do not trust anyone who does without knowing your roster.

For NDIS participants, the same logic applies with one more rule. The NDIS publishes pricing arrangements and price limits. According to the NDIS, registered providers cannot charge more than the price limit for a specific support, though a participant and provider can agree on a lower price. These limits apply to NDIA-managed and plan-managed participants. Read the NDIS pricing arrangements page before you compare a quote against what your plan can pay for.

An independent worker or a platform may look cheaper at first glance. But you may become the employer, or carry the screening and insurance questions yourself. That is why the whole picture matters, and it includes costs that never appear in an hourly rate.

What costs hide outside the hourly rate?

The costs that hide outside the hourly rate are the ones tied to what happens when things go wrong: a late cancellation, a shift left uncovered, a worker who is not a good fit, and the time you spend chasing paperwork. They do not appear on a quote, but they decide whether the quote was good value.

Think about four questions beyond the rate:

• Reliability. If the worker does not arrive, who finds cover and how quickly?
• Continuity. Will the same people return to your clients, or is every shift a new face?
• Paperwork. Can the agency show you each worker's screening and qualifications when you ask?
• Fit. Does the agency understand the care setting, such as dementia or complex needs?

Our post on urgent shift response times explains what to ask about last-minute cover. For providers managing a stretched roster, last-minute aged care staff shortages looks at how to plan for gaps before they happen.

None of these appear as a line item, and that is the point. A slightly higher rate from an agency that fills the shift and shows its paperwork can cost less than a cheaper rate that leaves you short.

Where does Care Steps fit?

Care Steps Australia is a casual-only staffing provider for aged care and NDIS services in Punchbowl and the surrounding Canterbury-Bankstown area. We do not do permanent placements and we do not charge a recruitment fee. You pay for shifts covered, and our workers are our own workforce rather than a marketplace of independent contractors.

We do not publish a rate card, a minimum shift length or a turnaround time on our website, so we will not quote one in a blog post. For a price, ask us for a written quote for the shifts you need. We can tell you what is included before you book.

Every worker we send is checked before the first shift. Our guide to the NDIS Practice Standards and staffing partners explains why that matters for providers. If you are a smaller provider weighing up agency cover, staffing for small and large aged care providers covers how needs differ by size. If you want to compare us with a larger agency, our post on big staffing agencies versus local specialists sets out the trade-offs. For the service itself, see our workforce solution.

Need casual aged care or NDIS staffing in Canterbury-Bankstown?

Care Steps Australia supplies casual aged care and NDIS staff across Punchbowl, Bankstown, Liverpool, Campbelltown, Campsie, Lakemba, Greenacre and Sydney. See our pages for Bankstown and Liverpool, or contact our team to ask for a written quote.

Care Steps Australia
48 Lancaster Avenue, Punchbowl NSW 2196
Phone: (02) 8201 3100
Email: info@carestepsaustralia.com.au
Hours: Monday to Friday, 9am to 5pm
Website: Care Steps Australia
Google Maps: Find us on Google Maps