If you operate a business in the road transport or logistics industry and employ workers for tasks like driving, loading, fleet maintenance, or distribution centre operations, you’re likely covered by the Road Transport and Distribution Award [MA000038].
Recent “Closing Loopholes” workplace reforms have introduced stricter definitions for casual employment and independent contractors, which is critical for an industry that relies heavily on owner-drivers and flexible rosters. Additionally, from 1 July 2025, the Annual Wage Review increased all minimum award rates and allowances by 3.5%.
To help you pay staff correctly and reduce the risk of underpayments later, this guide explains who the Award covers, how to match roles to the right grade or level, and the key rules for ordinary hours, overtime, penalty rates, allowances, breaks, and leave.
Key Takeaways
- The Road Transport and Distribution Award sets the minimum pay rates and key working conditions for employees within this industry.
- Pay rates and monetary allowances are reviewed each year and can change. From the first full pay period starting on or after 1 July 2025, Award minimum rates increased.
- Paying correctly usually comes down to getting 3 things right: accurate classification, use of the latest rates, and clear records of hours worked (ordinary time vs. overtime) and any allowances paid.
Award Basics
The Road Transport and Distribution Award 2020 sets the minimum pay rates and key working conditions for many employees working in Australia’s road transport and distribution industry.
The Award helps ensure staff are paid fairly and receive the correct core entitlements. That includes minimum base rates, weekend and public holiday rates, overtime, breaks, allowances, and leave, as well as the National Employment Standards (NES) (the minimum standards that apply to most Australian employees).
Employees are classified by the type of work they do, their skills, and their responsibilities. Under the Award, this is shown through distribution facility employee levels (Levels 1–4) and transport worker grades (Grades 1–10). Levels apply to warehouse and distribution roles, while grades apply to transport roles and reflect driving duties, equipment used, and skill level.
Did You Know?
The Fair Work Commission is an independent tribunal that creates and changes (varies) modern awards under Australia’s workplace relations system. The Fair Work Ombudsman provides practical tools and pay guides that help you check minimum pay rates and common entitlements under an award in a more user-friendly way.
Who’s covered under the Road Transport and Distribution Award?
You’re generally covered by the Award if your business operates in the road transport and distribution industry.
Businesses covered
Employers involved in the following:
- Transporting goods or livestock by road
- Receiving, handling, or storing goods at a distribution facility
- Storage/distribution linked to air freight forwarding and customs clearance
- Mobile food vending
- Driving vehicles from one place to another to deliver or relocate them
This Award can also apply if you’re in a different industry, but you have staff doing road transport/distribution work, and there’s no other award with a suitable classification for them.
Employees covered
You’re commonly covered if you’re connected to road transport or distribution work. For instance, if you work as a:
- Yardperson, driver’s assistant, loader
- Truck/forklift/concrete mixer/crane driver
- Transport rigger
- Distribution facility employee
- Furniture remover’s assistant
It can also cover:
- Labour-hire employees placed in a road transport/distribution business.
- Long-distance drivers doing some shorter-distance work.
Who isn’t covered under the Road Transport and Distribution Award?
You generally aren’t covered under the Award if the work is mainly:
- Chauffeuring
- Long-distance driving (e.g., interstate driving)
If a driver normally covered by the Road Transport and Distribution Award does long-distance work, they’ll be covered by the Road Transport (Long Distance) Award instead.
The Award also doesn’t apply where the work is covered by one of these other awards:
Classifications and Levels
Under the Road Transport and Distribution Award, employees are usually grouped in 2 main ways:
- By classification. This is based on what they do day-to-day, as well as the skills and responsibilities the role requires. The Award uses 2 main classification groups: Distribution facility employee levels (Levels 1–4) and transport worker grades (Grades 1–10).
- By employment type (full-time, part-time, or casual).
Distribution facility employee levels
Distribution facility employee levels group warehouse and distribution centre roles into Levels 1–4 based on the role’s skills, duties, and responsibilities.
| Levels | What this usually covers | Typical roles |
|---|---|---|
| Level 1 | Entry-level distribution facilities work under routine supervision, following set procedures. |
|
| Level 2 | More skilled distribution facilities work with some coordination under limited supervision. |
|
| Level 3 | Advanced work with quality control responsibility and minimal supervision. |
|
| Level 4 | Senior work overseeing a distribution facility (or large section). |
|
Transport worker grades
Transport worker grades group road transport roles into Grades 1–10 based on the type of work performed and, for drivers, the vehicle or equipment they operate. We’ll cover Grades 1–4 below:
| Grades | What this usually covers | Typical roles |
|---|---|---|
| Grade 1 | Entry-level transport support and basic yard work. |
|
| Grade 2 | Loading work and light rigid vehicle duties. |
|
| Grade 3 | Medium-sized truck driving and equipment operation. |
|
| Grade 4 | Heavier rigid trucks and more specialised site roles. |
|
For the full list of transport worker grades (including Grades 5–10) and classification details, refer to the Award.
Employment types
The Road Transport and Distribution Award includes 3 main types of employment: full-time, part-time, and casual.
Full-time
Full-time employees usually work 38 hours per week (or 76 hours over two weeks if hours are averaged under the Award). Their ordinary hours are generally between 5:30 am and 6:30 pm, with no more than 8 hours worked in a day.
Most full-time employees work Monday to Friday. Weekend work can be included if everyone agrees, and depending on the type of work. The Award explains when and how this can happen.
Full-time employees are permanent staff and receive paid annual leave, paid personal/carer’s leave, and public holiday entitlements.
Part-time
Part-time employees work fewer than 38 ordinary hours per week. Before they start, their agreed hours, days of work, start and finish times, and job classification must be set out in writing.
They receive the same minimum pay rates and conditions as full-time employees, but on a pro rata basis based on the hours they work.
Each time a part-time employee is rostered to work, they must be paid for at least 4 hours.
Casual
Casual employees are usually engaged as needed and are paid their base rate plus a 25% casual loading for each ordinary hour worked (so 125%). This higher rate is paid instead of the entitlements permanent employees receive (like paid annual leave and paid personal and carer’s leave).
Each time you roster a casual employee, they’re paid for at least 4 hours per engagement, even if the shift is shorter.
Did You Know?
Casual employees may, in some cases, request a conversion to permanent (part-time or full-time) employment under the NES. To check eligibility rules, timeframes, and the process for making a request, it’s best to refer to the NES and Fair Work’s guidance.
Pay Rates and Entitlements
Under the Road Transport and Distribution Award 2020, pay rates and entitlements set the minimum standards for what you must pay covered employees, as well as the key rules for ordinary hours, overtime, penalty rates, allowances, and leave.
Minimum base rates
Below are the Road Transport and Distribution Award minimum pay rates for full-time and part-time adult employees.
Distribution facility employees
| Levels | Minimum weekly rate (full-time) | Minimum hourly rate (full-time and part-time) |
|---|---|---|
| Level 1 | $1,009.60 | $26.57 |
| Level 2 | $1,027.40 | $27.04 |
| Level 3 | $1,067.30 | $28.09 |
| Level 4 | $1,116.70 | $29.39 |
| *The information is based on the Fair Work Pay Guide (which was updated 25 June 2025). | ||
Transport workers (non-oil distribution)
| Grades | Minimum weekly rate (full-time) | Minimum hourly rate (full-time and part-time) |
|---|---|---|
| Grade 1 | $974.70 | $25.65 |
| Grade 2 | $998.10 | $26.27 |
| Grade 3 | $1,009.60 | $26.57 |
| Grade 4 | $1,027.40 | $27.04 |
| *The information is based on the Fair Work Pay Guide (which was updated 25 June 2025). | ||
To put the minimum base rate into practice, let’s take a distribution facility employee (Level 2).
If they worked full-time, they’d earn the current minimum weekly rate of $1,027.40.
If they worked 20 hours per week part-time, you’d pay them $27.04/hour, which would total $540.80/week (20 × $27.04).
And if they were engaged as a casual Level 2 employee, they’d earn the same base rate of $27.04/hour, plus a 25% casual loading of $6.76/hour, which brings their casual rate to $33.80/hour. So over 20 hours, they’d earn $676.00 (20 × $33.80).
For the full list of pay rates (including Grades 5–10 and junior rates), download the Road Transport and Distribution Award pay guide and check the Award directly.
Pro Tip
Find the latest pay rates using the Fair Work Ombudsman’s Pay and Conditions Tool (PACT) or the Fair Work Commission’s Modern Awards Pay Database.
Penalty rates
Penalty rates are higher pay rates that apply when an employee works at certain times (like weekends or public holidays). If a penalty applies, you pay the penalty rate instead of the base rate for those hours.
| When penalty rates apply | What you pay (% of the ordinary hourly rate) |
|---|---|
| Saturday (ordinary hours worked between midnight Friday and midnight Saturday) | 150% |
| Sunday (ordinary hours worked between midnight Saturday and midnight Sunday) | 200% |
| Public holidays (full-time and part-time) | Good Friday and Christmas Day: 200% Other public holidays: 150% |
| Public holidays worked outside ordinary hours (full-time and part-time) | Good Friday and Christmas Day: 300% Other public holidays: 250% |
| Public holidays (casual employees) | Good Friday and Christmas Day: 325% (inclusive of casual loading). Other public holidays: 275% (inclusive of casual loading). |
Note: If an employee is required to work on a Saturday or Sunday, they must be paid for at least 4 hours.
Let’s use our example distribution facility employee, Level 2, whose minimum base rate is $27.04 per hour.
If they work on a Sunday during ordinary hours as a full-time or part-time employee, they’re paid 200% of their ordinary hourly rate. So their Sunday rate would be $54.08/hour (2 × $27.04), and if they worked 8 hours, they’d earn $432.64 (8 × $54.08).
If they work as a casual, they still get the 25% casual loading. This means their Sunday pay works out to 225% of the base rate (200% Sunday + 25% casual loading). So they’d take home $60.84/hour (2.25 × $27.04), and for 8 hours they’d earn $486.72 (8 × $60.84).
Additional rules apply on Christmas Day; check the Award for those provisions.
Overtime rules and rates
Overtime is any time an employee works outside their ordinary hours.
Rates
- Permanent employees (full-time and part-time)
- First 2 hours of overtime: Paid at 150% of the ordinary hourly rate.
- After 2 hours: Paid at 200% of the ordinary hourly rate.
- Casual employees
- Paid the overtime rate for each overtime hour.
- Receive an extra 10% of the minimum hourly rate for each overtime hour.
- Don’t receive the 25% casual loading while working overtime.
Note: Overtime is calculated separately for each day. Hours worked on different days aren’t added together.
Rest period after overtime
Where reasonably practicable, overtime should be arranged so employees have at least 10 continuous hours off between finishing one day and starting the next.
- If overtime stops a non-casual employee from getting a 10-hour break, the employee must get 10 hours off before their next shift, with no loss of ordinary pay.
- If the employer tells them to keep working or come back early, the employee is paid double time until they’re released—and they still must get a full 10-hour break, without losing ordinary pay.
Call back and standing by
- Call-back: If an employee has left work and is later called back to do overtime, they’re paid for a minimum of 4 hours.
- Standing by: If an employee has to remain available after hours in case they’re called back to work, they’re paid their normal rate unless another arrangement is in place.
Let’s use a Grade 3 transport worker to illustrate this. Their minimum base rate is $26.57 per hour.
If they’re full-time or part-time (permanent) and work 2 hours of overtime (outside ordinary hours), those hours are paid at 150%.
That means their overtime rate is $39.86/hour (1.5 × $26.57), so for 2 hours they’d earn $79.71.
If the same Grade 3 worker is a casual and those hours count as overtime, they’re paid the overtime rate plus an extra 10% of their minimum hourly rate (and they don’t get the 25% casual loading while working overtime).
That means their overtime rate is $42.51/hour ((1.5 × $26.57) + (0.10 × $26.57)), so for 2 hours they’d earn $85.02.
For more rules and rates (including shift work overtime), refer to the Award.
Did You Know?
You and your employee can agree in writing for them to take time off instead of overtime pay. The time off must equal the overtime they worked (e.g., 2 overtime hours at time-and-a-half = 3 hours off), and it must be taken within 6 months. There are extra rules around how this works, so it’s best to check the Award for all conditions.
Breaks
Break rules set the minimum meal and rest breaks you must provide during a shift, and the pay rate if a break isn’t given.
| Break type | Paid or unpaid | How long and when it happens | What you pay |
|---|---|---|---|
| Meal break (during ordinary hours). | Unpaid | 30–60 minutes. It should be taken between 3.5 and 5.5 hours after the employee starts. | If the employee doesn’t get their meal break, the time worked from when the meal break should’ve started until they get an unpaid meal break is paid at 200% of the applicable minimum hourly rate. |
| Break before overtime. | Paid | If an employee is staying back to work 2 hours or more of overtime after their ordinary hours, they get a 20-minute paid break before overtime starts (or as soon as practical after it starts). | Paid at the applicable minimum hourly rate. |
| Extra breaks during overtime. | Paid | If overtime keeps going, they get another paid break after every 4 hours of overtime, until the overtime is finished. | Paid at the applicable minimum hourly rate. |
A simple rule of thumb is that an employee shouldn’t work more than 5.5 hours without a meal break.
Allowances
Allowances are extra payments on top of the base rate that apply when someone takes on extra responsibility, works under special conditions, or incurs certain work costs.
| Allowance type | When it usually applies | Amount / what you do |
|---|---|---|
| Dangerous goods | When a driver transports dangerous goods, rates depend on whether the goods are bulk or packaged and require placarding. | $23.93/day (bulk) or $10/day (packaged requiring placarding). Dangerous goods licence training/medical costs are reimbursed (where required). |
| Meal allowance | When an employee works 2 continuous hours or more of overtime, or when they’re required to start 2 hours or more before their normal start time. | The employer either provides a meal or pays $20.32 per meal. |
| Travelling allowance | When an employee is travelling on duty or on work, and they can’t return home at night. | Personal travel expenses of at least $40.08/day are paid (this doesn’t apply where an employer provides suitable accommodation and meals). |
| Vehicle-related daily allowance | When an employee is required to drive certain higher-requirement vehicles (e.g., over legislated length limits, or with certain cranes fitted, or where vehicle/load width exceeds limits). | The common amount is $4.64/day. |
| Money handling | When an employee is required to handle money (rate depends on the highest amount handled in the week). | Ranges from $2.32/week (up to $20) to $27.66/week (over $2000). |
For the full list of allowances, check the Award directly.
Leave
Most leave comes from the NES, which applies no matter which award someone is under. The Road Transport and Distribution Award then adds extra rules for some leave types.
Let’s look at the key information for annual leave.
Annual leave
- Who gets annual leave: Full-time employees get 4 weeks of paid annual leave each year. Part-time employees get the same entitlement on a pro-rata basis. Casual employees don’t get paid annual leave.
- Pay during annual leave: Employees are paid their usual base rate for ordinary hours, plus 17.5% annual leave loading. If they’re paid above the Award minimum, their higher base rate still applies.
- Taking annual leave in advance: Annual leave can be taken before it’s accrued if there’s a written agreement stating how much leave is taken and when it starts. If the employee leaves before accruing the leave, the unaccrued amount can be deducted from final pay.
- Excessive annual leave: Annual leave is excessive if an employee has more than 8 weeks of paid leave (more than 10 weeks for shiftworkers). The Award sets rules on when leave can be directed or requested.
- Annual leave during a shutdown: If employees are required to take annual leave during a temporary shutdown, employers must usually give 28 days’ written notice, unless a shorter period is agreed.
- Cashing out annual leave: Annual leave can only be cashed out by written agreement. Employees must keep at least 4 weeks of accrued leave and can cash out no more than 2 weeks in any 12-month period.
For full details (including the notice rules, minimum balances, and agreement requirements), it’s best to check the Award.
Other NES leave
The NES also provides other types of leave that apply to most employees, including those under this Award. These include:
- Personal/carer’s leave and compassionate leave.
- Parental leave and related entitlements.
- Community service leave.
- Family and domestic violence leave.
Pro Tip
You can use the Fair Work Ombudsman’s Leave Calculator to check how much leave applies to your role.
How To Determine the Right Road Transport and Distribution Award Coverage
Before applying pay rates or entitlements, it’s important to confirm that your business and its employees actually fall under the Road Transport and Distribution Award.
1) Identify your business type
This Award generally applies to businesses whose main activity involves road transport and distribution work, such as:
- Transporting goods by road (e.g., deliveries, pick-ups, cartage).
- Work based out of a depot, yard, garage, or distribution facility that supports those transport operations (e.g., loading/unloading, dispatch, and warehousing tasks connected to the transport work).
2) Check the role (what the employee actually does day to day)
Even if your business falls within the industry, you still need to match the employee’s actual duties to the Award’s classification structure (see Schedules A and B of the Award). This Award mainly uses:
- Distribution facility employee levels (Levels 1–4) for warehouse/distribution facility work
- Transport worker grades (Grades 1–10) for transport work (drivers and other transport-related roles)
A simple way to match the right level/grade is to look at:
- What they do most days (not just their job title).
- Skill and responsibility (basic support vs. operating equipment vs. heavier vehicles vs. supervising others).
- Licences/tickets they need for the work (where relevant).
If someone’s duties sit across more than one level/grade, it’s usually safest to match them to the level/grade that reflects the highest skill/responsibility they use regularly.
3) Watch for common exclusions
Not every driving or transport-related job falls under this Award. For example, some long-distance driving work sits under the Road Transport (Long Distance) Award in certain situations.
As a guide, Fair Work describes “long distance operations” as trips like interstate journeys or where the return distance is more than 500 kilometres.
If you’re still unsure, cross-check the Award’s coverage and exclusions against what your business and the employee actually do.
Road Transport and Distribution Award: A practical, real-world example
Mia, a part-time employee, works for a courier and freight company in Brisbane that mainly delivers goods by road (pick-ups, linehaul transfers between local depots, and last-mile deliveries).
Because the business is a road transport and distribution operation, Mia is covered by the Road Transport and Distribution Award (not a retail or warehousing-only award).
Her role includes driving a medium rigid truck, performing pick-ups and drop-offs, loading and unloading (e.g., pallets or cartons), completing basic delivery paperwork, and maintaining a tidy, safe vehicle area.
Based on her duties, Mia’s classification and pay are as follows:
- Classification: Transport Worker Grade 3.
- Base rate (ordinary hours): $26.57/hour.
So, if she works 20 hours per week, she’d earn $531.40 (20 × $26.57).
Employer Obligations, Record-Keeping, and Common Mistakes
Under the Road Transport and Distribution Award, you’ll generally need to:
- Classify employees correctly (distribution facility levels or transport worker grades) and pay at least the correct minimum rate.
- Apply the right extras when they come up: overtime, weekend/public holiday penalty rates, and annual leave loading.
- Confirm employment type at engagement (full-time/part-time/casual) and record it.
- Agree in writing the hours/days/start-finish times for part-time employees, and pay overtime for hours over the agreed pattern.
- Pay key allowances when they apply (e.g., dangerous goods, meal allowance for overtime, travel allowance where relevant).
Record-keeping
Keep clear records of hours worked, classification, rates paid, and any allowances. Allowances should be shown separately on payslips/pay records.
For tools and templates, you can use the Fair Work Ombudsman’s free record-keeping and payroll guides.
Common mistakes to avoid
- Paying the wrong rate because the employee has been classified in the wrong grade/level.
- Mixing up ordinary hours vs. overtime (especially for part-time hours over the agreed pattern).
- Missing minimum engagement rules (including 4-hour minimums in some cases).
- Using outdated pay rates after wage updates.
Resources and Links
For further reading and official resources, visit:
- Road Transport and Distribution Award 2020 [MA000038]: The official Award text.
- Fair Work Information Statement (FWIS): A summary of employee rights and employer responsibilities under the NES.
- Annual Leave Cash-Out Agreement: A template for a lawful annual leave cash-out agreement.
- Annual Leave in Advance Agreement: A template for agreeing to annual leave in advance.
FAQs
Where can I find the official Road Transport and Distribution Award document?
The current consolidated modern award can be accessed via the Fair Work Commission or the Fair Work Ombudsman websites.
What is the minimum wage for truck drivers in Australia?
Pay rates depend on the Award and the driver’s grade. Under the Road Transport and Distribution Award, adult minimum hourly rates from 1 July 2025 range from $25.65 per hour for a Grade 1 driver to $37.36 per hour for a Grade 10 driver.
What is the Transport Worker Grade 9 definition?
Transport Worker Grade 9 covers highly skilled roles, such as operating large mobile or gantry cranes, driving very heavy vehicle and trailer combinations with a GCM over 94 tonnes, and some senior distribution facility roles, including Level 4 employees and aerodrome attendants.
Disclaimer
The information provided here is a summary only and does not constitute legal advice. While we have made every effort to ensure the information provided is up to date and reliable, we cannot guarantee its completeness, accuracy, or applicability to your specific situation. Laws change frequently, and outcomes may vary depending on your business circumstances. We recommend consulting a qualified employment lawyer before making decisions related to workforce management. Please note that we cannot be held liable for any actions taken or not taken based on the information presented on this website.