Sarah ThompsonThe Road Transport and Distribution Award 2020 (MA000038) is the primary modern award governing pay rates, working conditions, and entitlements for truck drivers, distribution workers, and freight handlers across Australia. Whether you are a rigid vehicle driver, a B-double operator, a forklift driver in a distribution centre, or an oil cartage worker, this award sets the minimum standards that apply to your employment. With the July 2025 Annual Wage Review delivering a 3.5% pay increase, understanding your updated entitlements is more important than ever.
Who Does the Road Transport and Distribution Award 2020 Cover?
The award covers employees working in:
- Road transport of goods and livestock (including refrigerated freight)
- Distribution facilities (warehouses, logistics centres, and DCs)
- Air freight forwarding and customs clearance (storage and distribution)
- Wholesale meat delivery
- Cartage of petroleum products (oil distribution — separate rate stream)
- Transport of milk and cream
- Cartage of quarried materials (sand, gravel, rock)
- Vehicle distribution and relocation
- Mobile food vending
Important exclusions: The award does not cover long-haul drivers employed under the Road Transport (Long Distance Operations) Award 2020 (MA000039), cash-in-transit workers, or waste management workers — each of those industries has its own modern award. Mining industry employees are also excluded.
The TWU (Transport Workers' Union of Australia) was a party to the making of this award. The employer counterparts include the Australian Road Transport Industrial Organisation (ARTIO/ATA) and the Australian Industry Group (AiG). Approximately 200,000 workers in metropolitan and short-haul freight and distribution nationally are covered.
Pay Structure and Classification Levels (2025-26)
The most recent Annual Wage Review delivered a 3.5% increase effective the first full pay period on or after 1 July 2025. The award contains three distinct rate streams.
Transport Workers — Grades 1 to 10
| Grade | Role Examples | Weekly Rate | Hourly Rate | Casual Hourly (+25%) |
|---|---|---|---|---|
| Grade 1 | General hand, loader, courier, rigger's assistant | AUD $974.70 | AUD $25.65 | AUD $32.06 |
| Grade 2 | Tow motor driver, rigid vehicle ≤4.5t GVM | AUD $998.10 | AUD $26.27 | AUD $32.84 |
| Grade 3 | Forklift ≤5t, two-axle rigid vehicle | AUD $1,009.60 | AUD $26.57 | AUD $33.21 |
| Grade 4 | Three-axle rigid, radio operator | AUD $1,027.40 | AUD $27.04 | AUD $33.80 |
| Grade 5 | Forklift >10t, four+ axle rigid, crane chaser | AUD $1,040.20 | AUD $27.37 | AUD $34.21 |
| Grade 6 | Heavy trailer combinations >22.4t GCM | AUD $1,052.00 | AUD $27.68 | AUD $34.60 |
| Grade 7 | Double articulated vehicle ≤53.4t GCM | AUD $1,067.30 | AUD $28.09 | AUD $35.11 |
| Grade 8 | B-doubles >53.4t GCM, mobile crane 25–50t | AUD $1,098.30 | AUD $28.90 | AUD $36.13 |
| Grade 9 | Mobile crane >50t, gantry crane | AUD $1,116.70 | AUD $29.39 | AUD $36.74 |
| Grade 10 | Multi-axle platform equipment 70–100t | AUD $1,144.40 | AUD $30.12 | AUD $37.65 |
Distribution Facility Employees — Levels 1 to 4
Workers employed in warehouses and distribution centres are classified under a separate four-level stream:
| Level | Weekly Rate | Hourly Rate | Casual Hourly |
|---|---|---|---|
| Level 1 | AUD $1,009.60 | AUD $26.57 | AUD $33.21 |
| Level 2 | AUD $1,027.40 | AUD $27.04 | AUD $33.80 |
| Level 3 | AUD $1,067.30 | AUD $28.09 | AUD $35.11 |
| Level 4 | AUD $1,116.70 | AUD $29.39 | AUD $36.74 |
Oil Distribution Workers
Oil cartage workers operate under separate provisions (clause 14 of the award). They work a 35-hour ordinary week instead of 38 hours. The weekly rates are the same as transport workers at the equivalent grade, but the hourly rate is calculated by dividing by 35, not 38. A Grade 1 oil distribution worker earns AUD $27.85/hour, rising to AUD $32.70/hour at Grade 10.
Junior rates: Employees under 19 years are paid 70% of the adult rate; age 19 pays 80%; age 20 and over pays 100%. Any employee aged 18 or over who is the sole driver of a vehicle is paid the full adult rate regardless.
Working Hours, Overtime and Penalty Rates
Ordinary Hours
Day workers are entitled to 38 ordinary hours per week, averaged over a cycle of up to 28 days. Ordinary time is typically worked between 5:30 am and 6:30 pm Monday to Friday (the spread of ordinary hours can be altered by agreement). Oil distribution workers are limited to a 35-hour ordinary week, worked between 6:30 am and 5:30 pm Monday to Friday.
Overtime
Overtime rates apply to all time worked beyond ordinary hours:
- First 2 hours: 150% of the ordinary rate (time and a half)
- After 2 hours: 200% (double time)
Employees must receive at least a 10-hour break between shifts. Where an employee is required to return to work in less than 10 hours following overtime, they are paid at double time rates until they receive a 10-hour break.
Penalty Rates
| Occasion | Penalty Rate |
|---|---|
| Saturday (ordinary hours) | 150% |
| Sunday (ordinary hours) | 200% |
| Good Friday and Christmas Day | 200% |
| Other public holidays (ordinary hours) | 150% |
| Good Friday/Christmas Day — outside ordinary hours | 300% |
| Other public holidays — outside ordinary hours | 250% |
| Afternoon shift (continuous shiftwork) | 117.5% |
| Night shift (continuous shiftwork) | 130% |
| Non-continuous afternoon or night shift | 150% |
| Early morning shift (starting 12:01 am–6:00 am) | 130% |
The minimum engagement for part-time and casual employees is 4 hours.
Annual Leave
Under Fair Work Act 2009 s.87 and the NES, full-time employees covered by the Road Transport and Distribution Award 2020 are entitled to 4 weeks (20 days) of paid annual leave per year. Part-time employees accrue leave on a pro-rata basis. Employees who are genuine continuous shiftworkers — rostered across all seven days of the week on a rotating basis — are entitled to 5 weeks under the NES.
Annual leave loading: The award provides for annual leave loading at the greater of:
- 17.5% of the employee's base rate of pay; or
- The shift or weekend penalty rate the employee would have received had they been working during the leave period.
Leave loading is not payable on both rates simultaneously — only the higher of the two applies. Employees may cash out a maximum of 2 weeks of their annual leave accrual per 12-month period, provided they retain at least 4 weeks of accrued leave at all times.
Notice Period
The Road Transport and Distribution Award 2020 does not enhance the minimum notice of termination above the NES. Employees and employers are both bound by the statutory minimums under Fair Work Act 2009 s.117:
| Period of continuous service | Minimum notice |
|---|---|
| Less than 1 year | 1 week |
| 1–3 years | 2 weeks |
| 3–5 years | 3 weeks |
| 5 years or more | 4 weeks |
| Employee aged 45+ with 2+ years service | +1 week supplement |
Notice may be given by either party. An employer may elect to make a payment in lieu of notice — this is taxed as ordinary income (not as an employment termination payment). For changes to ordinary starting times, the award separately requires the employer to give at least 48 hours' notice.
Redundancy Pay
Genuine redundancy entitlements under this award are governed by the NES (Fair Work Act 2009, Schedule 4, s.119). The award does not provide enhanced redundancy pay above the NES scale. Employees who are genuinely made redundant are entitled to:
| Years of continuous service | Redundancy pay |
|---|---|
| At least 1 but less than 2 years | 4 weeks |
| At least 2 but less than 3 years | 6 weeks |
| At least 3 but less than 4 years | 7 weeks |
| At least 4 but less than 5 years | 8 weeks |
| At least 5 but less than 6 years | 10 weeks |
| At least 6 but less than 7 years | 11 weeks |
| At least 7 but less than 8 years | 13 weeks |
| At least 8 but less than 9 years | 14 weeks |
| At least 9 but less than 10 years | 16 weeks |
| 10 years or more | 12 weeks (capped) |
Small business exemption: Employers with fewer than 15 employees are exempt from the NES redundancy pay obligation. Genuine redundancy (as defined in Fair Work Act s.389) requires that the position no longer exists, the employer has complied with any applicable consultation requirements, and it was not reasonable to redeploy the employee.
Redundancy pay up to the NES-prescribed amount is generally tax-free up to a lifetime limit (the tax-free component for Employment Termination Payments in 2025-26 is AUD $12,524 plus AUD $6,264 for each completed year of service). Amounts above this threshold are taxed as an ETP (Employment Termination Payment) at concessional rates.
Superannuation
Employers covered by the Road Transport and Distribution Award 2020 must pay the Superannuation Guarantee at the current legislated rate — 12% of ordinary time earnings from 1 July 2025 (Superannuation Guarantee (Administration) Act 1992). This is an employer-paid contribution on top of the employee's wage, not deducted from take-home pay.
Under clause 20 of the award, the default funds to which contributions may be made include Team Super, CareSuper, Australian Retirement Trust, and AustralianSuper. However, under Fair Work Act s.149A, employees have the right to choose their own complying superannuation fund. If a valid fund choice is made, the employer must pay contributions to that fund.
The 2025-26 concessional contributions cap (employer SG plus any salary-sacrifice or deductible personal contributions) is AUD $30,000 per year. Contributions within the cap are taxed at 15% in the fund.
Allowances
The award provides for the following allowances as at 2025-26:
| Allowance | Rate |
|---|---|
| Leading hand (1–5 employees supervised) | AUD $47.65/week |
| Leading hand (11+ employees supervised) | AUD $90.16/week |
| Dangerous goods — bulk | AUD $23.93/day |
| Dangerous goods — packaged/placarded load | AUD $10.00/day |
| Meal allowance (overtime 2+ hours or travel away) | AUD $20.32/meal |
| Travelling allowance (overnight away from home) | AUD $40.08/day minimum |
| Vehicle allowance (daily) | AUD $4.64/day |
| First aid officer | AUD $16.15/week |
| Money handling — over AUD $2,000 | AUD $27.66/week |
State and Territory Variations
Modern Awards are federal instruments — pay rates and most entitlements are identical in every state and territory. However, the following entitlements are governed by state or territory legislation and differ by jurisdiction.
Long Service Leave
Long service leave is not covered by the Fair Work Act. The qualifying period and entitlement vary significantly:
| State/Territory | Qualifying period | Entitlement | Legislation |
|---|---|---|---|
| NSW | 10 years | 2 months (8.667 weeks) | Long Service Leave Act 1955 |
| VIC | 7 years | 6.067 weeks; pro-rata after 7 years | Long Service Leave Act 2018 |
| QLD | 10 years | 8.667 weeks | Industrial Relations Act 2016 |
| SA | 10 years | 13 weeks | Long Service Leave Act 1987 |
| WA | 10 years | 8.667 weeks | Long Service Leave Act 1958 |
| TAS | 10 years | 8.667 weeks | Long Service Leave Act 1976 |
| ACT | 10 years | 6.067 weeks (pro-rata after 7 years) | Long Service Leave Act 1976 |
| NT | 10 years | 13 weeks; +6.5 weeks for each subsequent 5 years | Long Service Leave Act 1981 |
Use the Long Service Leave tab in the calculator above to estimate your entitlement by state.
Public Holidays
Federal public holidays apply in all states and territories: New Year's Day, Australia Day, Good Friday, Easter Saturday, Easter Monday, ANZAC Day, King's Birthday (timing varies by state), Christmas Day, and Boxing Day. State-specific additions include Melbourne Cup Day (VIC), EKKA Show Day (QLD), Adelaide Cup (SA), Foundation Day (WA), and Eight Hours Day (TAS).
Workers Compensation
Workers compensation is administered by state-based schemes — icare (NSW), WorkSafe Victoria, WorkCover Queensland, ReturnToWorkSA, WorkCover WA, WorkSafe Tasmania, WorkSafe ACT, and NT WorkSafe. Premium rates, claim processes, and weekly benefit amounts differ between jurisdictions.
Your Rights at Work
Unfair dismissal: If you have been dismissed and believe it was unfair, harsh, or unreasonable, you may apply to the Fair Work Commission for an unfair dismissal remedy under Fair Work Act s.382. The minimum employment period for eligibility is 6 months (or 12 months if your employer is a small business with fewer than 15 employees). Applications must be lodged within 21 days of the dismissal taking effect.
General protections: Fair Work Act Part 3-1 protects employees from adverse action taken because of a workplace right, union membership, or industrial activity. This protection applies from the first day of employment.
Right of entry: Under Fair Work Act Part 3-4, TWU officials with valid entry permits may enter your workplace to investigate suspected award or agreement breaches, hold discussions with employees, or inspect relevant records. They must give at least 24 hours' notice for most entry purposes.
Work health and safety: All employers in the road transport sector are bound by the Work Health and Safety Act 2011 (federal model WHS laws, enacted in most jurisdictions) or the relevant state WHS Act. Transport workers have the right to cease unsafe work and must not be penalised for raising safety concerns.
Disclaimer
This article is for general information purposes only and does not constitute legal advice. For questions about your specific employment situation, contact your union (Transport Workers' Union of Australia), the Fair Work Ombudsman (1300 724 690) or a qualified employment lawyer. All figures are as at the 2025-26 pay year.
