Road Transport and Distribution Award

If you run a transport, logistics, distribution or warehousing business in Australia and employ drivers, storeworkers or operational staff who are not otherwise award-free, the Road Transport and Distribution Award 2020 (MA000038) generally applies. It covers local pick-up and delivery, distribution, warehousing, removals and incidental garbage or sanitary cartage. Long distance driving and the dedicated waste-management industry fall under separate awards, so confirm which instrument covers each type of work on the Fair Work source before setting pay.

The award sets minimum rates by grade, with driver grades generally tied to the type and capacity of the vehicle operated and storeworker or warehouse grades tied to the skills and responsibilities of the role. Place each employee at the grade matching the work they actually perform, add the casual loading or any junior percentage if relevant, and apply the right penalties and allowances. Because rates change each July, read the current figure for the grade on the Fair Work Pay Calculator.

Driver grades are generally based on the type and capacity of the vehicle a driver operates, with larger vehicles and articulated combinations attracting higher grades and rates. If a driver regularly operates a heavier vehicle, they may belong in a higher grade. Match each driver to the grade for the vehicle they actually drive, and confirm the current rate for that grade and vehicle type on the Fair Work Pay Calculator rather than relying on memory.

Casual employees under MA000038 are paid a loading on top of the ordinary hourly rate, commonly 25% across modern awards, to compensate for the paid leave and other entitlements casuals do not receive. The loading is the starting point before any shift, weekend or public holiday penalties are added, and minimum engagement rules can apply. Treat 25% as a guide only and confirm the exact loading and engagement minimum for this award on the Fair Work source before running pay.

Saturday and Sunday work attracts weekend penalties on top of the ordinary rate, and in distribution and warehousing these can combine with shift loadings for early or late work. As a guide across awards, Saturday is commonly around 25% and Sunday around 50% above the ordinary rate, with casuals on a higher loaded basis. The figures for this award depend on the shift and employment type, so always confirm the current weekend rates on the Fair Work Pay Calculator before paying.

Work on a public holiday is paid at a premium under MA000038, which as a guide can reach up to 150% of the ordinary rate, with casuals on a higher loaded basis. Employees who would normally work that day but have it off are generally entitled to their ordinary pay. Public holidays vary by state and territory, which matters for operations crossing state lines, so check both the gazetted days and the current rate for the relevant shift on the Fair Work source.

Overtime applies when an employee works beyond their ordinary or rostered hours, or outside the agreed span, with the award setting rates that step up after the first hours and separate rates on Sundays and public holidays. There are also rules on rest breaks between shifts. Identify which hours count as overtime for each worker, then confirm the applicable overtime rate and break entitlements for this award on the Fair Work Pay Calculator before paying.

Yes. Part-time employees work fewer than full-time hours on a reasonably predictable pattern, and the award requires the agreed hours, days and times to be set out in writing, with changes agreed in the same way. Part-timers receive pro-rata leave and the same minimum rates as full-timers for their grade, plus the relevant shift and weekend penalties for the hours they work. Check the part-time provisions in the award for the full requirements before setting a roster.

MA000038 provides allowances geared to transport and distribution work, which can include special-vehicle allowances in some cases, leading hand or supervisory allowances, a first aid allowance, a meal allowance for qualifying overtime, and allowances for handling particular loads such as livestock, furniture, garbage or dangerous goods. Which ones apply depends on each role's duties. Because the amounts are reviewed each year, identify the relevant allowances and confirm their current values on the Fair Work Pay Calculator.

Annual leave loading is an extra payment on top of base pay when an employee takes paid annual leave, and under this award it is 17.5% of the ordinary rate, or the shift and weekend penalties the employee would otherwise have earned for the period, whichever is greater. It is paid to full-time and part-time employees; casuals do not accrue annual leave. Apply the loading at pay time and confirm the calculation on the Fair Work source.

Minimum rates and many allowances are reviewed each year in the Fair Work Commission's Annual Wage Review and take effect from the first full pay period on or after 1 July. The 2026 review increased modern award minimums by 4.75%. To stay compliant you must apply the new rates from that pay period, not the calendar date, so verify the current figures for each grade and allowance on the Fair Work Pay Calculator every year.

The Road Transport and Distribution Award (MA000038) covers local pick-up, delivery, distribution and warehousing work, while the Road Transport (Long Distance Operations) Award covers long distance operations beyond a set radius from base, which use different pay methods including cents-per-kilometre. A business doing both must apply the right award to each type of work. If a driver does a mix, confirm how each part of the work should be treated on the Fair Work source before setting pay.

Start by confirming each employee's correct grade, with drivers matched to the vehicle they operate, then map rosters to the award's shift, weekend, public holiday and overtime rates, apply any allowances for loads, conditions or supervision, and refresh every figure from the Fair Work Pay Calculator after each 1 July increase. Accurate time and run records are essential. Valont runs award-compliant payroll for transport and logistics businesses, mapping work to the correct grades, penalties and allowances so staff are paid correctly every cycle.

Interstate and long-distance line-haul driving is the Long Distance Operations Award.

A dedicated waste-collection business is covered by the Waste Management Award.