Logistics Award rates 2025/2026 (Australia)
Road Transport and Distribution Award 2020 MA000038
A simple, practical guide for small business owners
Updated 26 Jan 2026 • Rates effective from the first full pay period starting on or after 1 July 2025 From 1 July 2025
Written by
Steve Harris
Quick summary for time-poor owners
If you only read one section, read this:
$25.65
Grade 1 base rate
25%
Casual loading
4 hrs
Minimum engagement
$20.32
Meal allowance
- The "Logistics Award" most people mean is the Road Transport and Distribution Award 2020 [MA000038]. It sets minimum pay and conditions for many road transport and distribution roles (drivers and distribution facility employees).
-
You must get four things right for each worker:
- Award coverage (does MA000038 apply?)
- Classification (Transport Worker Grade 1–10, or Distribution Facility Level 1–4)
- Employment type (full-time, part-time, casual)
- When and how they work (ordinary hours vs overtime, weekend/public holidays, shiftwork, allowances)
- Overtime (day work): work outside ordinary hours is 150% for the first 2 hours, then 200% after 2 hours.
- Casual overtime is different: casuals don't get the 25% loading on overtime; instead they get overtime rates plus an extra 10% of the minimum hourly rate per overtime hour.
- Minimum engagement: casuals must be paid at least 4 hours per engagement; part-timers must get a minimum 4-hour payment per day engaged.
- Key allowances you'll see in practice:
- Meal allowance: $20.32 per meal (when triggered)
- Travelling allowance: $40.08 per day (when unable to return home at night)
- Pay timing: the Award requires earnings to be paid weekly and sets timing rules.
General information only – not legal advice.
This guide provides general information about the Road Transport and Distribution Award 2020 [MA000038] (often searched as the "Logistics Award") and related Australian workplace laws as at 26 Jan 2026. It does not constitute legal, financial, payroll, HR, or employment advice and should not be relied on as a substitute for advice specific to your business, workforce, and circumstances.
Important accuracy notes:
- Award wages/allowances typically change (often after the Annual Wage Review). Always check the current consolidated Award text and/or use PACT before setting wages.
- This guide assumes MA000038 applies. Many "logistics" businesses are instead covered by other awards (e.g., warehousing/storage operations may fall under the Storage Services Award [MA000084], office staff may be under the Clerks Award). Use PACT to confirm coverage first.
- Where this guide provides examples, they are simplified. Actual payable amounts depend on classification, employment type, day/time worked, and allowances.
What the Award is
Think of MA000038 as a legal "minimum conditions rulebook" for covered workers. It sets:
- Minimum pay rates (by classification)
- How overtime and penalty rates apply
- Allowances and reimbursements
- Operational rules (start times, breaks, pay frequency, engagement minimums)
You can always pay more or provide better conditions — but you generally can't go below the Award minimums.
Who the road transport & distribution Award covers
Commonly covered
This award generally covers employers in the road transport and distribution industry and their employees in relevant classifications. Common roles include transport workers (drivers, shuttle drivers, ground staff) and logistics employees (warehouse workers, forklift operators, dispatch officers). It can also apply where an employer in a different industry employs people to perform road transport/distribution work, if no other more appropriate award covers them.
Common exclusions / "wrong award" traps
- The Award does not cover certain chauffeur driving
- It won't apply where the employer/employee is covered by the Road Transport (Long Distance Operations) Award (except where long-distance driving is only incidental)
- Warehouse/storage operations may fall under the Storage Services and Wholesale Award [MA000084] — check PACT to confirm
- Office staff may be under the Clerks Award
Practical tip: Don't pick an award based on what competitors pay. Use our guide to finding your award or confirm coverage with PACT.
Most searched logistics Award topics
The most common queries cluster around pay rates, overtime, weekend/public holiday rates, allowances, and casual rules. Here are the common questions with where to look in this guide:
"What are the 2025 pay rates?"
Transport Worker Grades 1–10 and Distribution Facility Levels 1–4 all have different rates.
See 2025 pay rates"How do I calculate overtime?"
Watch the casual overtime trap — casuals get overtime rates plus 10%, not the 25% loading.
See Overtime rules"What are Saturday/Sunday/public holiday rates?"
Saturday is 150%, Sunday is 200% for ordinary time. Public holidays have complex rules.
See Penalty rates"What allowances apply (meal/travel/dangerous goods)?"
Meal $20.32, travel $40.08/day, dangerous goods up to $23.93/day, first aid $16.15/week.
See Allowances"What are the casual conversion rules now?"
The "employee choice" pathway lets long-term casuals request permanent employment.
See Casual conversion2025 pay rates overview (adult minimums)
The Award sets minimum weekly and hourly rates for Transport Worker Grades 1–10 and Distribution facility employees Levels 1–4. For accurate calculations, use payroll software with award interpretation.
A. transport workers (Grades 1–10)
Rates effective first full pay period on/after 1 July 2025. Casual ordinary hourly includes 25% loading for ordinary hours only.
| Classification | Weekly (FT) | Hourly (FT/PT) | Casual hourly* |
|---|---|---|---|
| Transport Worker Grade 1 | $974.70 | $25.65 | $32.06 |
| Transport Worker Grade 2 | $998.10 | $26.27 | $32.84 |
| Transport Worker Grade 3 | $1009.60 | $26.57 | $33.21 |
| Transport Worker Grade 4 | $1027.40 | $27.04 | $33.80 |
| Transport Worker Grade 5 | $1040.20 | $27.37 | $34.21 |
| Transport Worker Grade 6 | $1052.00 | $27.68 | $34.60 |
| Transport Worker Grade 7 | $1067.30 | $28.09 | $35.11 |
| Transport Worker Grade 8 | $1098.30 | $28.90 | $36.13 |
| Transport Worker Grade 9 | $1116.70 | $29.39 | $36.74 |
| Transport Worker Grade 10 | $1144.40 | $30.12 | $37.65 |
*Casual ordinary hourly = minimum hourly rate + 25% casual loading (ordinary hours only). Overtime for casuals is calculated differently.
B. distribution facility employees (Levels 1–4)
| Classification | Weekly (FT) | Hourly (FT/PT) | Casual hourly* |
|---|---|---|---|
| Distribution facility Level 1 | $1009.60 | $26.57 | $33.21 |
| Distribution facility Level 2 | $1027.40 | $27.04 | $33.80 |
| Distribution facility Level 3 | $1067.30 | $28.09 | $35.11 |
| Distribution facility Level 4 | $1116.70 | $29.39 | $36.74 |
C. oil distribution workers (special rates)
Oil distribution workers have a separate hourly-rate table (weekly rates align, but hourly rates differ under the Award's oil distribution provisions).
| Classification | Hourly (FT/PT) | Casual hourly* |
|---|---|---|
| Grade 1 (oil) | $27.85 | $34.81 |
| Grade 5 (oil) | $29.72 | $37.15 |
| Grade 10 (oil) | $32.70 | $40.88 |
Juniors (and the "junior driver in sole charge" rule)
Junior rates are set as percentages of the adult minimum hourly rate for the classification:
- Under 19: 70%
- 19 years: 80%
- 20 years: 100%
Important exception
If a junior employee is 18 or older and required to drive a motor vehicle and is in sole charge, they must be paid the adult rate for the class of driving work they perform.
Staff classifications (Grades & Levels)
Many underpayments stem from wrong classification, not just wrong hourly rate.
At a high level, MA000038 uses:
- Transport Worker Grades (1–10) for transport roles
- Distribution facility employee Levels (1–4) for distribution/warehouse-type roles
The detailed definitions live in Schedules A and B of the Award.
Practical approach that works
- Decide whether the role is primarily transport or distribution facility work
- Match the duties to the closest Grade/Level definition (don't rely on job title alone)
- Record the chosen classification in the worker's contract and your payroll system
Employment types (full-time vs part-time vs casual)
Full-time
A full-time employee works an average of 38 ordinary hours per week.
Part-time (common "logistics" trap)
Before a part-timer starts, the employer and employee must agree on hours, days, start/finish times, and classification. That agreement (and any variation) must be in writing.
Also: a part-time employee must receive a minimum payment of 4 hours for each day engaged, and time worked beyond the agreed hours is paid at overtime. Using rostering software that tracks employment types ensures consistent pay calculations.
Casual
Key rules:
- Casuals get a 25% casual loading for each ordinary hour worked
- Minimum 4 hours per engagement must be paid
- Casual overtime is not "base + 25% then overtime". It's overtime rates plus an extra 10%, and no 25% loading while working overtime
Ordinary hours, start times & breaks
Ordinary hours & weekend rostering
Ordinary hours are generally worked Monday–Friday, but can include Saturday/Sunday by agreement (including agreement with an individual employee).
Start time changes
A regular starting time is fixed by the employer. If the employer changes the regular starting time, the Award requires one week's notice.
Meal breaks
The Award sets rules for regular unpaid meal breaks (duration and timing), and includes requirements for meal breaks in relation to overtime.
Overtime rules
Base overtime rates (day work)
For work outside ordinary hours:
- 150% of the ordinary hourly rate for the first 2 hours
- 200% after 2 hours
Casual overtime (easy to get wrong)
For each overtime hour, a casual employee must be paid:
- the overtime rate (150%/200%), plus
- 10% of the minimum hourly rate for their classification
…and they do NOT receive the 25% casual loading while working overtime.
Time off instead of overtime pay (TOIL)
The Award allows written agreement to take time off instead of being paid for particular overtime, with timing and payment backstop rules (including if time off isn't taken within 6 months).
Call-back & stand-by
Call-back overtime after leaving the workplace has a minimum 4 hours' pay (with exceptions). Stand-by is paid at ordinary rates where required.
Weekend & public holiday penalty rates
Weekend ordinary-time penalties (day work)
For ordinary time hours:
| Day | Rate | Minimum |
|---|---|---|
| Saturday | 150% | 4 hours |
| Sunday | 200% | 4 hours (stands alone) |
Public holidays
Public holiday rates vary depending on whether work is within ordinary hours or outside, and whether the person is casual. The Award includes:
- Minimum 4 hours on a public holiday
- Higher rates for Christmas Day and Good Friday than for other public holidays
- Casual public holiday payments are expressed as a penalty in addition to casual loading
Because public holiday rules can become complex fast (especially with overtime interactions), use PACT's Shift Calculator for the exact shift scenario.
Shiftwork loadings
Shift definitions and shiftwork rules are set out in clause 22, and shiftwork loadings include:
| Shift type | Loading |
|---|---|
| Afternoon shift | 117.5% |
| Night shift | 130% |
The Award also sets weekend/public holiday penalties for rostered shiftworkers, and specifies how those penalties interact with shift rates (some penalties replace the shift rate).
Allowances
These allowances frequently apply in transport and logistics:
| Allowance | Rate | When it applies |
|---|---|---|
| Meal allowance | $20.32 per meal | When required to work 2+ hours overtime (if meal not provided) |
| Travelling allowance | $40.08 per day | When unable to return home at night (unless accommodation/meals provided) |
| Dangerous goods (bulk) | $23.93 per day | Bulk dangerous goods or explosives |
| Dangerous goods (packaged) | $10.00 per day | Packaged dangerous goods requiring placarding |
| First aid | $16.15 per week | If appointed and qualified (plus course fee reimbursement) |
| Money handling | From $2.32/week | Based on highest amount handled (see Award table) |
Practical tip: Build an "allowance checklist" into onboarding and payroll (meal, travel, DG, money handling, clothing, etc.) so you aren't relying on memory. Award interpretation software handles this automatically.
Leave entitlements (NES + annual leave loading)
Leave entitlements for permanent employees come primarily from the National Employment Standards (NES), including:
- Annual leave: 4 weeks per year (pro-rata for part-time)
- Paid personal (sick) / carer's leave: 10 days per year for full-time (pro-rata for part-time)
Annual leave loading under this Award
MA000038 provides annual leave loading rules. For day work it provides 17.5% or the relevant weekend penalty rate (whichever is greater), but not both.
Casual "employee choice" pathway
The Award points to the NES pathway for changing from casual to permanent employment (see sections 66A–66MA of the Fair Work Act).
Fair Work Ombudsman guidance explains the "employee choice" pathway and transitional timing (including different dates for small business employers).
If you have long-term casuals on regular patterns, this is an area worth checking proactively to avoid disputes and backpay risk.
Right to disconnect
The right to disconnect is now part of workplace law, with small business coverage starting from 26 August 2025 (per Fair Work Ombudsman guidance).
This Award also includes a right to disconnect clause and notes interactions with stand-by/call-back situations.
Step-by-step compliance plan
Confirm award coverage (don't skip this)
Use PACT / Find my award to confirm which award applies to your business and each role.
Classify every employee (and write it down)
Record whether they are Transport Worker Grade 1–10 or Distribution Facility Level 1–4, and full-time / part-time / casual.
Set base rates (and verify)
Enter the correct minimum rates from clause 17 and sanity-check with PACT.
Configure overtime, penalties & shiftwork rules
Especially casual overtime (extra 10% rule), Saturday/Sunday penalties, and shiftwork loadings.
Build allowances into payroll
Meal ($20.32), travel ($40.08), dangerous goods, first aid, money handling. Award interpretation software handles this automatically.
Pay correctly and on time
The Award sets pay frequency/timing requirements (weekly pay cycle rules).
Keep records and issue compliant payslips
A time and attendance system helps meet record-keeping obligations.
Review casuals periodically
Check "employee choice" eligibility, especially for long-term casuals on regular patterns.
Common mistakes
Wrong award
Warehouse under a storage/wholesale award, long-distance driving under the long-distance award, etc.
Part-time agreements not in writing
Or "extra hours" paid at ordinary rates instead of overtime.
Mishandling casual overtime
Paying 25% loading on overtime, or forgetting the extra 10% rule.
Forgetting minimum engagement rules
Casuals and part-timers must be paid for at least 4 hours.
Missing allowances
Meal and travel allowances are commonly overlooked.
Public holiday errors
Wrong rate, wrong interaction with casual loading / ordinary vs outside ordinary hours. Underpayment claims can be costly.
Sources & official resources
All pay rates and conditions in this guide are based on official Fair Work resources:
- Road Transport and Distribution Award 2020 [MA000038] — Fair Work summary
- MA000038 consolidated award text — Full award including rates
- Fair Work Pay Calculator (PACT) — Calculate rates and find your award
- National Employment Standards — Leave and other NES entitlements
- Casual employment guidance — Employee choice pathway
- Right to disconnect — Fair Work Ombudsman guidance
Always verify: Award rates change annually (usually 1 July). Use the Fair Work Pay Calculator to confirm current rates for your specific situation.
Frequently asked questions
- Pay rates depend on classification. Transport Worker Grade 1 earns $25.65/hr (full-time/part-time) or $32.06/hr (casual with 25% loading). Grade 10 earns $30.12/hr or $37.65/hr casual. Distribution facility employees range from Level 1 at $26.57/hr to Level 4 at $29.39/hr. See full pay rates table →
- Casuals receive a 25% loading on their ordinary hourly rate. However, this loading does not apply during overtime hours. Instead, casuals working overtime get the overtime rate plus an extra 10% of the minimum hourly rate. See employment types →
- This is a common trap. For casual overtime, you pay: the overtime rate (150% for first 2 hours, 200% after) plus 10% of the minimum hourly rate — but without the 25% casual loading. Many employers incorrectly add the 25% loading to overtime rates. See overtime rules →
Related award rate guides
Explore other Australian Modern Award pay rate guides
Simplify Road Transport Award compliance
RosterElf's award interpretation engine handles MA000038 casual overtime calculations, penalty rates, and allowances automatically. Built for Australian transport and logistics businesses.