Australia introduces minimum wage and protections for gig economy delivery workers
Consensus Summary
Australia has introduced landmark minimum wage and protection standards for gig economy delivery workers, effective from 17 August 2024, following a decade of advocacy and negotiations. The new rules, approved by the Fair Work Commission, mandate a minimum hourly wage of $31.30 for engaged time, significantly above the national minimum wage of $26.44, and will increase to $31.30 to $32 from 1 January 2027. The reforms, part of the Albanese government’s 'Closing Loopholes' legislation passed in 2024, aim to provide stability and insurance protections for around 250,000 workers in the food and grocery delivery sector. The changes were jointly negotiated by unions like the Transport Workers’ Union and platforms such as Uber Eats and DoorDash, marking a shift from the previous classification of gig workers as independent contractors. While the standards are described as interim and subject to future review, they represent a significant step toward fairer pay and workplace protections in Australia’s gig economy.
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Key details reported by multiple sources:
- Delivery drivers will earn at least $31.30 an hour under new minimum standards, effective from 17 August 2024
- The new standards were introduced after the Albanese government's gig economy reforms in 2023, empowering the Fair Work Commission to set minimum standards
- The changes affect about 250,000 workers in Australia’s food and grocery delivery sector
- The minimum wage for delivery drivers will increase to $31.30 to $32 an hour, with a further increase to $31.80 to $32.50 from 1 January 2027
- The reforms were a decade in the making, following the rise of gig economy platforms in Australia around 2012
- The Fair Work Commission approved the new standards in 2024, following negotiations between unions and platforms like Uber Eats and DoorDash
- The new standards include a minimum hourly rate of $31.30 for engaged time, above the national minimum wage of $26.44
- The reforms were introduced after the Albanese government passed the 'Closing Loopholes' reforms in 2024, giving the Fair Work Commission new powers to regulate gig economy workers
Points of Difference
Details reported by only one source:
- The new minimum standards are described as a 'world-first' deal for gig economy workers.
- The minimum hourly rate for engaged time ranges from $31.30 to $32 depending on the vehicle used (e.g., push bike or car).
- The minimum rates will increase by 50 cents from 1 January 2027.
- The new standards include clearer dispute resolution and the right to unpaid time off for workers.
- The deal was jointly applied for by the Transport Workers’ Union, UberEats, and DoorDash in 2024.
- The new standards will see workers paid for time waiting at restaurants for orders they have already accepted, but not for time waiting for new delivery jobs.
- Platforms must now offer a reasonable minimum level of personal accident cover for workers, though workers still cover vehicle insurance costs.
- The reforms were introduced after the Albanese government gave the Fair Work Commission new powers in 2023, following gig economy reforms two years prior (2021).
- A 30-year-old worker, Alexi Edwards, previously earned as low as $15 an hour and works about 40 hours a week.
- The Transport Workers Union’s national secretary, Michael Kaine, described the changes as a decade in the making, starting around 2012.
- The new standards are interim orders by the Fair Work Commission and could change in the future.
- Platforms like Uber Eats and DoorDash must consult and notify workers about significant changes, such as exiting the market.
Contradictions
Conflicting information between sources:
- The Guardian states the new standards come into effect from 17 August 2024, while the ABC does not explicitly mention this date but refers to the changes coming into effect 'today' in an article published 2026-08-16, implying a later date.
- The Guardian mentions the minimum wage will increase to $31.30 to $32, with a further increase to $31.80 to $32.50 from 1 January 2027, while the ABC does not mention the 2027 increase explicitly.
- The ABC states the Albanese government introduced gig economy reforms two years ago (2024), while the Guardian states the reforms were introduced in 2023, with the Fair Work Commission empowered in 2024.
Source Articles
Delivery drivers will get a minimum wage in Australia’s ‘world-first’ deal. But is it fair – and will your Uber Eats cost more?
A closer look at the new rules for gig workers – agreed to by Uber Eats and Doordash – shows ‘minimum wage’ looks a little different than usual Get our breaking news email , free app or daily news podcast From Monday, an Uber or Doordash delivery driver in Australia will earn at least $31.30 an hour – a milestone for gig economy workers who have struggled with low pay and lack of protections for over a decade. The union hailed its deal with DoorDash and Uber Eats – the two organistions that cont
Here's what is changing about how food delivery workers are paid
New minimum standards for food delivery workers come into effect today. It will see about 250,000 workers access better pay, and personal accident insurance cover.
Delivery drivers to be paid minimum $31.30 an hour across Australia in ‘world-leading’ decision
Fair Work Commission issues a new minimum standards order for gig workers to come into effect 17 August Get our breaking news email , free app or daily news podcast Delivery drivers in Australia will be paid a minimum rate of $31.30 (US $22.05/£16.35) an hour and insured for injuries on the job under a landmark agreement approved by the industrial umpire that could set a precedent in other countries. The Fair Work Commission (FWC) on Tuesday issued a new minimum standards order for gig workers w