A Distribution facility employee level 1 and a Transport worker grade 3 earn exactly the same casual rate under the Road Transport and Distribution Award from 1 July 2026, which is $34.79 an hour, yet the award treats them through different classification schedules. Labour hire bookings for distribution centres, cross-dock depots and delivery fleets can fall on either scale, and a quote that names the wrong one misstates the rate.
Clause 4.4 covers an employer that supplies labour on an on-hire basis in the road transport and distribution industry, for on-hire employees in the classifications the award covers, while they work for a business in that industry. The industry includes receiving, handling or storing goods in a distribution facility (clause 4.2(b)). This guide sets out the two scales, the casual overtime rule that sets this award apart, and a worked cost per hour.
Which workers fall on which scale
A distribution facility is a facility from which goods are distributed by road, and at which they may be stored for that purpose, operated by an employer as part of or in connection with a road transport business. Schedule A sets four levels for its employees:
- Level 1: storing and packing goods, allocating and retrieving goods, basic computer terminal work, housekeeping and stock-checks, or operating a small company delivery vehicle.
- Level 2: inventory and facility control, including licensed operation of materials handling equipment, or operating a 3 to 6 tonne truck.
- Level 3: operation of all materials handling equipment under licence where required, facility layout, or a truck over 6 tonnes up to and including 13.9 tonnes GVM.
- Level 4: responsibility for a distribution facility or a large section of one, with supervision and on-the-job training of others.
Transport workers are graded 1 to 10 in Schedule B by the vehicle and duties. The pay guide notes extra amounts for some heavy vehicle drivers, such as low loader drivers over 43 tonnes and multi-axle trailer drivers over 70 tonnes, and those extras are not in the standard tables.
Casual rates from 1 July 2026
Fair Work's pay guide for the award, published on 10 July 2026, gives these casual hourly rates for weekday ordinary hours:
- Distribution facility employee levels 1 to 4: $34.79, $35.40, $36.78 and $38.48
- Transport worker grades 1 to 3: $33.59, $34.39 and $34.79
- Transport worker grades 4 to 6: $35.40, $35.84 and $36.25
- Transport worker grades 7 to 10: $36.78, $37.85, $38.48 and $39.44
Some rates match dollar for dollar across the two scales. Distribution facility levels 1, 2, 3 and 4 pay the same as transport worker grades 3, 4, 7 and 9. A quote that gives only a dollar figure therefore does not tell you which classification the provider has in mind, so ask for the title as well as the rate.
How casual overtime differs
Most awards add the casual loading into the overtime rate. This one does not. Clause 11.4 says a casual employee must be paid for overtime at the rates in clause 21.1, plus 10% of the minimum hourly rate for the classification for each overtime hour, and will not receive the 25% loading while working overtime. The award's own example uses a $20 rate: time and a half is $30 plus $2, which is $32, and double time is $40 plus $2, which is $42.
For a Distribution facility employee level 1, the fulltime rate is $27.83. The casual overtime rates in the pay guide are $44.53 for the first two hours (160%) and $58.44 after that (210%), against $34.79 for an ordinary casual hour. The first overtime hour therefore costs $9.74 more than an ordinary hour in pay terms. If a quote applies a flat 1.25 casual loading to overtime on this award, check it.
Weekend, public holiday and shift rates for a level 1 casual
Weekend, public holiday and shift hours keep the casual loading in addition to the award percentage. For a Distribution facility employee level 1, the pay guide gives:
- Saturday, by agreement to work ordinary hours: $48.70
- Sunday, by agreement to work ordinary hours: $62.62
- Public holiday: $76.53, and $90.45 on Good Friday or Christmas Day
- Afternoon shift (117.5% plus loading): $39.66
- Night shift (130% plus loading): $43.14
Casual shiftworkers receive the 25% loading in addition to the shift rate (clause 22.4), and work on a public holiday is paid in addition to the casual loading, with a four hour minimum payment. Clause 11.3 also sets a minimum payment of four hours for each casual engagement.
A worked cost per hour for a level 1 casual
Take a Distribution facility employee level 1 and a provider that pays Victorian payroll tax at the standard 4.85% on pay and super together. This is an illustration, not a quote:
- Weekday ordinary hour: pay $34.79, super $4.17, payroll tax $1.89, running total $40.85
- Saturday: pay $48.70, super $5.84, payroll tax $2.65, running total $57.19
- Public holiday: pay $76.53, super $9.18, payroll tax $4.16, running total $89.87
- Overtime, first 2 hours: pay $44.53, no super, payroll tax $2.16, running total $46.69
- Overtime, after 2 hours: pay $58.44, no super, payroll tax $2.83, running total $61.27
Overtime carries no super because the ATO excludes it from ordinary time earnings, as our guide to superannuation on overtime explains, and it still carries payroll tax. WorkCover, insurance and the provider's fee are added to these lines.
Choosing the right award before you compare quotes
The Storage Services and Wholesale Award does not cover an employer that is covered by the Road Transport and Distribution Award (clause 4.3(b) of the storage award). Two providers can therefore quote the same warehouse under different awards, and part of the gap between their rates is coverage rather than margin. Ask each provider to name the award, the classification and the pay guide date. Our guide to storage award rates shows the comparable figures, and our post on why quotes differ for the same role covers the other sources of difference.
Related Resources
- Road Transport and Distribution Award text
- Fair Work pay guide for the award
- Storage Services and Wholesale Award pay rates
- how the 25% casual loading is applied
- why quotes differ for the same role
- how to compare labour hire quotes
- warehousing and logistics labour hire
Common Questions About the Road Transport and Distribution Award
1. Does the Road Transport and Distribution Award apply to warehouse labour hire?
It depends on who operates the facility. The award covers receiving, handling or storing goods in a distribution facility run as part of a road transport business. A warehouse run as a storage business is more likely to fall under the Storage Services and Wholesale Award. Ask the provider to name the award and explain why it applies.
2. What is a distribution facility under this award?
It is a facility from which goods are distributed by road, and at which they may be stored for later distribution, operated by an employer as part of or in connection with its road transport business.
3. Do casuals get the 25% loading in overtime?
No. Clause 11.4 says a casual does not receive the 25% loading while working overtime and is paid 10% of the minimum hourly rate for each overtime hour instead. That gives 160% for the first two hours and 210% after.
4. Is Saturday and Sunday work paid at ordinary rates?
The pay guide lists Saturday and Sunday rates for work by agreement to work ordinary hours, at 150% and 200% of the fulltime rate plus the casual loading. Time worked outside ordinary hours is paid under the overtime rules.
5. What is the minimum engagement for a casual?
Clause 11.3 sets a minimum payment of four hours per engagement, so a short booking is still paid for four hours.
Match the Award to the Facility First
A distribution floor can sit on either scale or under a different award altogether, and the casual overtime rule here is unlike most others. Identify who operates the facility, name the award and classification on the booking, and check the overtime line separately. Chandler Personnel provides Melbourne labour hire and permanent recruitment, and you can send the facility details and shift pattern through the request staff form.
