Road Transport Award pay guide 2026/2027
A simple, practical guide for transport, distribution and logistics employers
Updated • FY2026/27 rates — effective the first full pay period on or after 1 July 2026
Written by
Steve Harris
Summarise with AI
This guide provides general information about the Road Transport and Distribution Award 2020 [MA000038] and related Australian workplace laws as at the date of publication.
It does not constitute legal, financial, payroll or employment advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.
Pay rates, penalty rates and allowance amounts under modern awards change periodically, particularly following the Fair Work Commission’s Annual Wage Review. The calculator and rate tables model transport employees other than oil distribution; oil distribution employees are paid higher rates. This guide includes indicative minimum figures effective from the first full pay period on or after 1 July 2026. Employers must always check the current Fair Work pay guide before setting or paying wages.
Long-distance drivers may be paid under specific long-distance provisions (cents-per-kilometre), and waste/recycling collection or passenger transport may fall under different awards. Always confirm award coverage (e.g. using Fair Work’s Pay and Conditions Tool (PACT)).
If you need award-specific guidance, see:
Looking for MA000038?
This is it. MA000038 is the official Fair Work code for the Road Transport and Distribution Award 2020. This guide covers its pay rates, classifications, penalties and compliance for 2026/27.
View official MA000038 on Fair Work →Award rate calculator
See how RosterElf interprets the Road Transport Award
This is an educational example showing how the Road Transport Award penalty rates work. It demonstrates how RosterElf automatically calculates correct pay rates based on classification level, employment type, and shift times.
Award penalty rates
Example weekly cost (38 hours)
Example only - not for payroll use
This is a demonstration of how RosterElf calculates award-compliant rates.
The actual cost for your employees will depend on:
- Their specific classification level and employment type
- Actual hours worked and shift times
- Any additional allowances, overtime, or enterprise agreement provisions
- Current award rates (which change annually in July)
For accurate payroll calculations, always:
- Verify current rates with the official Fair Work pay guide
- Confirm your employees' correct award coverage and classification
- Use award interpretation software or consult a payroll professional
- Review your specific enterprise agreement (if applicable)
Do not rely on this example for actual wage payments.
Stop calculating penalty rates manually
Let RosterElf handle award compliance automatically
Manual award calculations are time-consuming and error-prone. One mistake can lead to underpayments, compliance issues, and Fair Work penalties. RosterElf's award interpretation engine does the work for you.
How RosterElf automates award calculations
Create pay templates
Create pay templates for each classification level with award-compliant base rates and penalty multipliers. RosterElf applies the correct template to each shift automatically.
Award interpretation →Define rate rules
Configure when different penalty rates apply (evenings, weekends, public holidays). The system detects which rate to use based on shift times and days.
Penalty rates guide →Auto-apply to shifts
Every rostered shift calculates the correct pay rate based on the employee's classification, employment type, and shift timing. No manual work required.
Payroll integration →Quick casual pay rates reference 2026/27
Casual rates for ordinary weekday hours for transport workers (other than oil distribution), generated from the current Fair Work pay guide:
FY2026/27 rates are in effect
All modern award rates rose 4.75% from the first full pay period on or after 1 July 2026, and the national minimum wage is now $26.44/hr. The rates below and in the calculator reflect the current Fair Work pay guide.
Casual hourly rates 2026/27 (transport workers, ordinary weekday hours)
| Level | Example roles | Casual hourly rate |
|---|---|---|
| Grade 1 | Entry-level / yard / loading | $33.59 |
| Grade 2 | Driver up to 4.5t / storeperson | $34.39 |
| Grade 3 | Driver 4.5–13.9t / forklift | $34.79 |
| Grade 4 | Driver 13.9–15.4t | $35.40 |
| Grade 5 | Driver 15.4–22.4t | $35.84 |
| Grade 6 | Driver 22.4–43t | $36.25 |
| Grade 7 | Driver of articulated vehicles | $36.78 |
| Grade 8 | Driver of road trains / B-doubles | $37.85 |
| Grade 9 | Heavy combination / specialised | $38.48 |
| Grade 10 | Most senior / specialised driver | $39.44 |
Weekend & public holiday rates are higher
On top of the ordinary rates above: Saturday +50%, Sunday +100% and public holidays +150% for full-time and part-time staff (casual rates are higher again — the 25% loading is added to the penalty). Shiftwork loadings and the oil-distribution stream’s higher rates apply separately. Use the calculator for the ordinary/weekend/public-holiday figures.
Quick summary for time-poor employers
Important: This guide models transport employees other than oil distribution. Oil-distribution employees and long-distance (cents-per-km) drivers are paid differently — confirm which applies (see the disclaimer above).
If you only skim one section, make it this one:
- The Road Transport and Distribution Award 2020 [MA000038] covers transport, distribution and logistics, with transport worker grades 1–10 (mostly set by vehicle type/weight).
- Minimums are reviewed each July. The FY2026/27 pay guide took effect from the first full pay period on or after 1 July 2026, lifting all rates by 4.75%.
- Example 2026/27 adult minimum pay:
- Grade 1: full-time/part-time $26.87/hr, casual $33.59/hr.
- Grade 7 (articulated vehicle): full-time/part-time $29.42/hr, casual $36.78/hr.
- Penalties: Saturday +50%, Sunday +100%, public holidays +150% (full-time/part-time); casual rates are higher again.
- Dangerous-goods, driver-salesperson and shift allowances/loadings apply on top.
- Get grade (by vehicle), employment type and shift type right for every employee.
Bottom line: with grade-by-vehicle classifications, weekend rates and dangerous-goods allowances, manual calculation is error-prone — check your underpayment risk. Award-aware rostering software with award interpretation keeps it correct automatically. See our guide on how to roster warehouse and logistics staff.
Who the award covers (and who it doesn't)
The Road Transport and Distribution Award covers transport, distribution, warehousing and logistics work — drivers, storepersons, forklift operators and yard staff. Transport workers are graded 1–10, largely by the type and weight of vehicle driven.
Important — who’s covered by other awards/provisions: oil distribution employees are paid higher rates within this award; long-distance drivers may be paid under cents-per-kilometre provisions; waste/recycling and passenger transport may fall under different awards. Confirm coverage with Fair Work’s PACT tool before applying rates.
2026/27 pay rates overview: what you must pay
A snapshot of the current FY2026/27 rates for transport workers (other than oil distribution), generated from the same data that powers the calculator above.
What changed from 2025/26
The FY2026/27 Annual Wage Review lifted all modern award minimum rates by 4.75%. For this award, for example: grade 1 is now $26.87/hr and grade 7 (articulated vehicle) is $29.42/hr (full-time/part-time). Penalty and casual rates rose proportionally. Always confirm against the current pay guide.
Adult – full-time & part-time
Ordinary weekday rates for transport worker grades 1–10:
| Level | Example roles | Weekly pay | Hourly rate |
|---|---|---|---|
| Grade 1 | Entry-level / yard / loading | $1,021.00 | $26.87 |
| Grade 2 | Driver up to 4.5t / storeperson | $1,045.50 | $27.51 |
| Grade 3 | Driver 4.5–13.9t / forklift | $1,057.60 | $27.83 |
| Grade 4 | Driver 13.9–15.4t | $1,076.20 | $28.32 |
| Grade 5 | Driver 15.4–22.4t | $1,089.60 | $28.67 |
| Grade 6 | Driver 22.4–43t | $1,102.00 | $29.00 |
| Grade 7 | Driver of articulated vehicles | $1,118.00 | $29.42 |
| Grade 8 | Driver of road trains / B-doubles | $1,150.50 | $30.28 |
| Grade 9 | Heavy combination / specialised | $1,169.70 | $30.78 |
| Grade 10 | Most senior / specialised driver | $1,198.80 | $31.55 |
Transport employees other than oil distribution. Grades are largely set by vehicle type/weight. Oil-distribution rates are higher — see the pay guide.
Adult – casual
Casuals receive the same base rate plus a 25% loading. Ordinary weekday casual rates:
| Level | Example roles | Casual hourly rate |
|---|---|---|
| Grade 1 | Entry-level / yard / loading | $33.59 |
| Grade 2 | Driver up to 4.5t / storeperson | $34.39 |
| Grade 3 | Driver 4.5–13.9t / forklift | $34.79 |
| Grade 4 | Driver 13.9–15.4t | $35.40 |
| Grade 5 | Driver 15.4–22.4t | $35.84 |
| Grade 6 | Driver 22.4–43t | $36.25 |
| Grade 7 | Driver of articulated vehicles | $36.78 |
| Grade 8 | Driver of road trains / B-doubles | $37.85 |
| Grade 9 | Heavy combination / specialised | $38.48 |
| Grade 10 | Most senior / specialised driver | $39.44 |
Casual rates shown are the ordinary weekday rate (base + 25% loading). Weekend and public-holiday loadings apply on top — use the calculator above.
How to classify your staff
Classification is largely driven by the type and weight of vehicle driven (plus non-driving roles):
- Grade 1–2 cover yard, loading and light-vehicle/storeperson duties.
- Grades 3–6 step up by vehicle weight (rigid trucks from 4.5t up to 43t).
- Grades 7–10 cover articulated vehicles, road trains, B-doubles and specialised heavy combinations.
- Forklift, dangerous-goods and driver-salesperson roles attract additional allowances.
Write each employee’s grade (by vehicle), employment type and any allowances into your payroll/rostering system. If unsure, confirm the right level.
Penalty rates, shiftwork & allowances
Road Transport Award penalties (on the ordinary rate):
- Saturday: 150% (full-time/part-time), 175% (casual)
- Sunday: 200% (full-time/part-time), 225% (casual)
- Public holiday: 250% (full-time/part-time), 275% (casual)
- Shiftwork loadings apply for afternoon and night shifts (separate from the calculator above).
- Dangerous goods (about $25.07/day bulk, $10.47/day packaged), driver-salesperson (about $23.16/week) and other allowances apply.
- Overtime: time-and-a-half then double time; double time on Sundays and public holidays.
The calculator above covers ordinary, Saturday, Sunday and public-holiday rates. For shiftwork, oil distribution, long-distance and overtime, use Fair Work’s PACT tool or award-interpreting software.
Stop calculating transport penalties by hand
RosterElf's award interpretation engine applies Road Transport Award weekend, public-holiday and shift rates automatically from each shift's times.
See award interpretationFull-time vs part-time vs casual
Full-time & part-time
- Full-time is around 38 hours per week, ongoing; part-time has a regular agreed pattern.
- Both receive paid annual and personal/carer’s leave (pro-rata for part-time) and other NES entitlements. Part-time hours should be agreed in writing.
Casual
- Paid a 25% casual loading instead of paid leave, with a minimum engagement per shift.
- Casual weekend and public-holiday rates are higher than the permanent rates because the loading is added to the penalty (for example, casual Sunday is 225% of the base rate).
Casuals working regular, ongoing hours may be eligible for casual conversion to permanent employment.
Allowances
Common allowances under this award include:
- Driver-salesperson – about $23.16 per week.
- Dangerous goods – about $25.07/day (bulk) or $10.47/day (packaged).
- First aid – about $16.92 per week.
- Dirty material – about $0.63/hr; carting tar – about $4.76/week; carbon black – about $2.96/day.
- Travelling, meal and living-away allowances apply for distant work.
Exact amounts update each pay guide — see the Fair Work pay guide.
Step-by-step compliance plan
- Confirm the award and stream (general transport vs oil distribution; not long-distance cents-per-km or passenger transport).
- Download the latest pay guide (FY2026/27).
- Classify each employee by grade (vehicle type/weight) and role.
- Set base rates and apply weekend/public-holiday penalties, shift loadings, dangerous-goods and other allowances, and overtime.
- Use award-interpreting software so penalties and allowances are calculated automatically, and keep records for 7 years.
Final takeaways
- Grades 1–10, largely set by vehicle type/weight.
- Saturday +50%, Sunday +100%, public holidays +150%.
- Oil distribution and long-distance drivers are paid differently.
- Dangerous-goods and driver-salesperson allowances are easy to miss.
- Update every July and keep good records.
For official guidance, visit the Fair Work Ombudsman website.
Industries using this award
Explore rostering solutions for businesses covered by the Road Transport Award
Run the Road Transport Award on autopilot
RosterElf builds the award rules into your rosters, timesheets and payroll.
Award interpretation
Automatically applies weekend, public-holiday and shift rates from shift times.
Rostering software
Build award-aware rosters in minutes with live wage cost and compliance warnings.
Time & attendance
Capture exact start and finish times with GPS clock-in for drivers and depots.
Payroll integration
Send award-interpreted timesheets straight to Xero, MYOB and other payroll systems.
Road Transport Award knowledge base
Step-by-step help for applying the award inside RosterElf.
Related award rate guides
Explore other Australian Modern Award pay rate guides
Stop calculating the Road Transport Award by hand
RosterElf applies Road Transport Award (MA000038) penalty, shift and public holiday rates automatically based on shift times.
Road Transport Award FAQ
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The Road Transport and Distribution Award 2020 (MA000038) covers transport, distribution, warehousing and logistics — drivers, storepersons, forklift operators and yard staff. Transport workers are graded 1–10, largely by the type and weight of vehicle driven. Oil distribution employees are paid higher rates within the award, and long-distance drivers may be paid under cents-per-kilometre provisions.
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Grades are mostly set by the vehicle type and weight: lower grades cover yard/loading and light vehicles, mid grades step up by rigid-truck weight (from 4.5t to 43t), and higher grades (7–10) cover articulated vehicles, road trains and B-doubles. Non-driving roles like storepersons and forklift operators are graded by their duties. Always classify by actual duties and vehicle.
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Long-distance drivers may be paid under specific cents-per-kilometre provisions rather than hourly rates, depending on the trip and configuration. Because these are distinct from the hourly grades, use the Fair Work pay guide or PACT — the estimator on this page covers the hourly grades for transport workers other than oil distribution.