Timber Industry Award

If you operate in the timber and related industries in Australia, whether a sawmill, a timber processing plant or a wood and panel products operation, and you employ staff who are not otherwise award-free, the Timber Industry Award 2020 (MA000071) is generally the relevant award. Some work, such as on-site joinery, may fall under the Joinery and Building Trades Award instead. Confirm coverage for your specific operation against the Fair Work source before setting pay and conditions.

First identify the relevant stream under the award, such as General Timber, Wood and Timber Furniture, or Pulp and Paper, then match the employee to the level within that stream that reflects the work they actually perform, using the award's classification definitions. A skilled machinist or grader sits above an entry-level mill hand. Title alone is not enough; assess the real duties and training, then read the current minimum rate for that level from the Fair Work Pay Calculator.

Casual timber industry employees are paid an hourly rate plus a casual loading, commonly 25% across modern awards, in place of the paid leave and other entitlements casuals do not receive. The loading can combine with weekend, shift and public holiday penalties when casuals work those times, so it is not always a flat add-on. Treat 25% as a guide and confirm the exact loading and how it interacts with penalties for this award on the Fair Work source before running pay.

Ordinary hours worked on Saturdays and Sundays attract penalty rates under the award. As a guide, Saturday loadings are commonly around 25% and Sunday around 50%, but MA000071 sets its own figures and casuals may be treated differently. Always confirm the current Saturday and Sunday rates for your employee type on the Fair Work Pay Calculator before processing pay, particularly where the mill runs across the weekend.

Work on a public holiday is paid at a significant premium, which across awards can reach up to 150% of the minimum rate, and a minimum engagement may apply. Employees who would normally work that day but do not because it is a public holiday are generally entitled to their ordinary pay under the National Employment Standards. Check the current public holiday entitlement for MA000071 against the Fair Work source before running a pay period that includes one.

Overtime applies when an employee works beyond the ordinary hours set by the award, such as exceeding the daily or weekly limits or working outside the spread of ordinary hours. Running a mill on to clear a backlog can readily generate overtime. Overtime is paid at penalty rates that step up after the first couple of hours, with higher rates on Sundays and public holidays; confirm the applicable multipliers on the Fair Work source.

Yes. Part-time employees work fewer than full-time hours on a reasonably predictable pattern, and the award requires a written agreement setting out the agreed hours, days and times, with any changes also agreed in writing. Part-timers receive pro-rata leave and the same minimum rates as full-timers for their classification. Check the part-time provisions in the award for the full requirements, including how additional hours are treated.

The timber industry trains apprentices, and the award sets apprentice rates as a percentage of the relevant tradesperson rate, increasing as the apprentice progresses through their training, with junior rates applying to some non-apprentice roles. Because the underlying tradesperson rate changes each year, apply the correct percentage to the current rate rather than carrying a dollar amount forward, and confirm the figure on the Fair Work Pay Calculator.

The award provides allowances suited to mill and timber work, which can include a leading hand allowance, a first aid allowance, a meal allowance for qualifying overtime, a tool allowance, and disability or dirty-work allowances reflecting the conditions of the job. Which apply depends on the role and the work, and they are paid on top of the base rate. Identify the relevant allowances for each employee and confirm current amounts on the Fair Work Pay Calculator.

Annual leave loading is an extra payment on top of base pay when an employee takes annual leave. Under this award it is 17.5% of the minimum rate of pay, and it applies to full-time and part-time employees taking paid annual leave. Casuals do not accrue annual leave. Where an employee normally earns shift loadings, the leave loading is designed so they are not worse off taking leave; apply it when processing leave payments and confirm the calculation against the Fair Work source.

Minimum rates, apprentice 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%. Apply the new rates from that pay period, not the calendar date, and refresh each classification rate and allowance from the Fair Work Pay Calculator each year so your timber payroll stays compliant.

Timber work can involve dust, noise, heavy materials and other demanding conditions, and the award recognises some of these through disability or dirty-work allowances paid on top of the base rate, alongside the employer's separate work health and safety duties. Which allowances apply depends on the task and the conditions in your operation. Identify the relevant conditions for each role and confirm the current allowance amounts against the Fair Work source.

The risks with MA000071 sit in the detail: the right stream and classification, shift loadings on a multi-shift mill, the condition-based and tool allowances, weekend and overtime penalties, apprentice rates, and figures refreshed every July. Anchor every figure to the Fair Work Pay Calculator and review pay each 1 July, keeping accurate records of hours and shifts. Valont's People Hub runs award-compliant payroll for timber industry employers, mapping classifications, allowances and penalties so the right amount is paid every cycle.