Australia’s New Minimum Pay for Delivery Riders

Before you assume you will earn $31.30 for every hour online, read this

Last reviewed: 13 August 2026
Author: Explore With Us Team

If you deliver food or groceries through an app, you may have seen the headline:

“Delivery riders will now earn at least $31.30 an hour.”

That sounds simple.

It isn’t.

Australia has introduced legally binding minimum standards for certain app-based delivery workers. The rules are a meaningful step forward, covering pay, insurance, records and information workers receive before accepting a delivery.

But the hourly safety net does not automatically cover every minute you are logged into an app.

That detail could completely change what the headline means for your weekly earnings.

Here is the practical explanation riders actually need.


The 30-second answer

What changed for gig delivery workers in Australia?

From 17 August 2026, the Fair Work Commission’s Interim On-Demand Delivery Employee-like Worker Minimum Standards Order applies to certain contractors delivering food, drinks, liquor or supermarket groceries through digital platforms.

The initial safety-net rates are:

  • $31.30 per engaged hour for a pedal bicycle, electric bicycle, scooter or no vehicle;
  • $31.50 per engaged hour for a combustion motorcycle or scooter; and
  • $32.00 per engaged hour for another eligible motor vehicle with a carrying capacity of up to one tonne.

These rates apply from 17 August to 31 December 2026. They are calculated using engaged time across an earnings period, not simply every hour a worker is logged into an app.

The official starting point is the Fair Work Ombudsman’s employee-like workers guidance. The full legal details appear in the Fair Work Commission’s interim order.


Is this really a minimum hourly wage?

It is a minimum safety net, but it is not the same as an employee’s hourly wage.

The people covered by the order remain contractors described under workplace law as “employee-like workers.” The order does not turn them into employees or automatically provide employee entitlements such as annual leave, sick leave, superannuation or payment for every hour online.

Instead, a platform calculates an earnings floor for an earnings period of up to 21 days:

Engaged hours × the applicable vehicle rate = minimum earnings floor

If the worker’s eligible pay for that period falls below the floor, the platform must provide a top-up. Under the order, that top-up is paid in the next earnings period or within seven days after it.

This means the calculation is not necessarily assessed delivery by delivery.

What counts as “engaged time”?

In general, engaged time begins when a worker accepts a delivery engagement in the app and ends when that engagement is completed.

An engagement can contain more than one order. If another engagement is accepted while the first is still underway, the timing rules prevent the same period from simply being counted twice.

But some time can be excluded. The order contains rules concerning cancellations, abandoned deliveries, breakdowns, accidents, breaks, unreasonable routes and certain delays.

For example, time may be treated as non-engaged when there is evidence that:

  • an order was ready for collection but the worker delayed collecting it despite being available at or near the pickup point;
  • the worker delayed delivery after collecting the order;
  • the delivery had already been completed but was not marked complete; or
  • the worker took an unreasonable route or stopped for more than five minutes for something unrelated to the delivery.

Platforms cannot silently exclude time however they like. The order includes a notification process where a platform believes a worker’s engagement contains non-engaged time.

Does waiting between orders count?

Generally, no.

If you are logged in and waiting for the next offer, but have not accepted an engagement, that period is generally outside the definition of engaged time.

This is the most important limitation in the new system.

Imagine you stay online for four hours but accepted deliveries covering only two recorded engaged hours. The safety-net calculation would generally use those two engaged hours—not the full four hours online.

That is why a headline saying “$31.30 an hour” can create the wrong expectation.

Who is covered by the order?

The order covers qualifying employee-like workers engaged through an app to perform services that, across an earnings period, predominantly involve collecting and delivering:

  • food;
  • beverages or liquor;
  • takeaway items; or
  • supermarket groceries.

The items must be ordered online, collected from a business selling them and delivered immediately or as soon as practicable after the worker accepts the engagement.

The Commission’s decision says the order will apply principally to Uber Eats, DoorDash and the workers they engage. However, the legal coverage is written around the nature of the platform and work—not a short list of brand names.

It does not cover a worker using a vehicle with a carrying capacity greater than one tonne.

Does it cover rideshare drivers and parcel couriers?

Not automatically.

This order is specifically focused on qualifying on-demand delivery work involving consumables and supermarket groceries.

Driving passengers, scheduled parcel delivery, removal work or other app-based services should not be assumed to fall under this particular order. Different minimum-standards cases or workplace rules may apply.

Check the actual work you perform rather than assuming every gig platform is covered.

The rates depend on your vehicle

For 17 August to 31 December 2026, the order sets these rates:

Vehicle used Safety-net hourly rate
No vehicle or pedal bicycle $31.30
Electric bicycle or scooter $31.30
Combustion motorcycle or scooter $31.50
Other eligible motor vehicle up to one tonne $32.00

From 1 January to 31 December 2027, the listed rates rise to $31.80, $31.80, $32.00 and $32.50 respectively.

The higher vehicle amounts recognise some cost differences, but workers remain responsible for many of their own expenses.

Who pays for fuel, repairs and vehicle costs?

The worker does.

Under the order, an employee-like worker remains responsible for acquiring, maintaining and repairing their vehicle. They also pay running costs such as fuel, parts, registration, permits and other relevant costs.

That means a $32 safety-net rate for a car is not the same as taking home $32 after expenses.

Track your real costs. Fuel, servicing, tyres, depreciation, insurance and tax can significantly reduce what remains.

Our tax return guide for people working in Australia explains some of the checks workers should make before lodging a return. Tax treatment depends on your circumstances, so use ATO guidance or a registered tax agent where needed.

What insurance must platforms provide?

The platform must pay for and maintain a personal accident insurance policy providing a reasonable minimum level of cover reflecting the worker’s work on the app.

But there are two important cautions:

  1. The policy does not have to provide the same level of cover as a workers’ compensation scheme.
  2. Workers using vehicles must still maintain their own legally required compulsory third-party insurance and comply with their insurer’s requirements.

Do not assume the platform policy covers every accident, expense or period from login to logout. Read the policy details provided through your platform and keep a copy.

What information should riders receive before accepting a job?

With each engagement request, a covered platform must provide information including:

  • the name and location of the collection point;
  • whether the delivery includes bulky items or alcohol;
  • the approximate location of the recipient;
  • the estimated minimum delivery fee; and
  • the estimated time needed to complete the engagement.

That gives workers more information before deciding whether a delivery is worth accepting.

Workers determine whether and when to accept engagements and can take unpaid time away by not accepting them. The order also allows platforms to maintain reasonable minimum acceptance or non-cancellation rates where needed for the marketplace to function properly.

What records must platforms keep?

Covered platforms must keep specified records for seven years. These include gross and net amounts paid, deductions, engaged hours and information about account activation or deactivation.

Workers can request copies of records required under the order. Platforms must also provide information about pay, deductions and engaged hours at the end of each earnings period.

This matters because you cannot challenge a shortfall if you have no record of what happened.

Keep your own evidence too:

  • weekly or earnings-period statements;
  • screenshots of engagement offers;
  • accepted and completed delivery times;
  • top-up payments;
  • deductions and adjustments;
  • vehicle expenses; and
  • messages about excluded time or account changes.

What should delivery workers do now?

1. Read the platform’s updated information

Covered platforms must provide a Gig Worker Information Statement by email and in-app notification. Do not dismiss it without reading it.

2. Confirm your registered vehicle

Your safety-net rate depends on the vehicle class. Make sure the platform’s records match what you actually use.

3. Track engaged time separately from online time

Record when you accept and complete deliveries. Do not rely only on the number of hours you remember being online.

4. Check the whole earnings period

Compare eligible earnings with engaged hours across the platform’s stated earnings period. Look for a top-up if the total falls below the applicable floor.

5. Query unexplained exclusions in writing

If time or pay appears to have been excluded, ask the platform for the calculation and relevant records. Keep its response.

6. Use the dispute process if it remains unresolved

The order says the parties should first use the platform’s internal appeal or dispute-resolution process. If the issue cannot be resolved after those steps, either party may refer the dispute to the Fair Work Commission for mediation, conciliation, an opinion or recommendation. Arbitration requires agreement between the parties.

Are gig delivery riders now employees?

No—not because of this order.

The Fair Work Ombudsman explains that employee-like workers are contractors who meet specific legal requirements. Minimum standards orders can create additional pay and condition protections, but they cannot change a worker’s engagement status by declaring them an employee.

This distinction affects leave, superannuation, tax, expenses and other rights. If you are unsure whether you are genuinely a contractor, seek individual advice rather than relying on the label used in an app.

Why this matters to our community

Delivery work is often one of the first income options people find after arriving in Australia.

It is flexible. It can fit around study, another job or family commitments. But riders also carry costs and risks that disappear from the simple “earn per delivery” message.

These new standards will not solve every problem in the gig economy.

They do create a legal floor, clearer information, record-keeping requirements and an insurance obligation where many workers previously had little certainty.

The best way to use these protections is to understand what they actually say.

Not what a headline makes them sound like.

Frequently asked questions

When do Australia’s delivery-worker minimum standards start?

The Interim On-Demand Delivery Employee-like Worker Minimum Standards Order starts on 17 August 2026.

Will every delivery rider receive $31.30 for every hour online?

No. The safety-net calculation uses engaged time across an earnings period of up to 21 days. Time spent logged in but waiting without an accepted engagement is generally not included.

What is the minimum rate for a delivery driver using a car?

The order lists $32 per engaged hour for an eligible motor vehicle with a carrying capacity of up to one tonne from 17 August to 31 December 2026.

Does the minimum rate apply to Uber Eats and DoorDash?

The Commission said the order would apply principally to Uber Eats, DoorDash and their covered employee-like workers. Coverage ultimately depends on the platform, contract and type of delivery work.

Do riders receive workers’ compensation?

The order requires platforms to fund personal accident insurance with a reasonable minimum level of cover. It expressly says this does not need to equal workers’ compensation coverage.

Do the rules make delivery riders employees?

No. Covered riders remain employee-like workers rather than becoming employees simply because the order applies.

A final word from Explore With Us

If you deliver through an app, do three things this week:

Check your vehicle category.

Save your earnings records.

Learn the difference between online time and engaged time.

That ten-minute check will tell you more than the headline ever could.

If this guide helped you understand the change, share it with a rider in your network. For other employment opportunities, visit the Explore Jobs job board.


Official sources

Disclaimer

This article provides general information based on official Fair Work Ombudsman and Fair Work Commission material available on 13 August 2026. The order is interim and may be reviewed or varied. Whether it covers you depends on your contract, platform, work and circumstances. Check the current official guidance or obtain qualified workplace advice before acting.