Australia Sets $31.30 Minimum Wage for Delivery Drivers From August 17

Australia’s Fair Work Commission approved new minimum standards for delivery drivers on Tuesday, setting a $31.30 hourly rate starting August 17. The landmark agreement covers food, drink, and grocery delivery workers across all platforms and includes mandatory personal accident insurance paid by delivery companies. The Transport Workers’ Union called the decision world-leading after years of negotiations with DoorDash and UberEats.

What the new pay standards cover

Delivery drivers will earn a minimum of $31.30 per hour for engaged working time, including waiting and travel periods. The rate varies slightly by vehicle type, ranging from $31.30 to $32 per hour. Rates will increase by 50 cents per hour from January 1, 2027. The standards apply to all on-demand food, drink, and grocery delivery platforms, not just DoorDash and UberEats.

Insurance requirements shift costs to platforms

Delivery platforms must now organise and pay for personal accident insurance providing reasonable minimum cover for workers. Drivers remain responsible for third-party vehicle insurance. The new insurance mandate creates fresh demand for personal accident and motor cover across the insurance industry in Australia and the Asia-Pacific region.

How the deal came together

The Transport Workers’ Union jointly applied with DoorDash and UberEats in 2024 after years of talks. The Fair Work Commission took public submissions from gig workers, Amazon, and Australia Post before approving the standards. Union negotiators agreed to call workers “employee-like” rather than employees, a key concession that allowed the deal to proceed. TWU national secretary Michael Kaine said the outcome was world-leading.

Broader protections beyond pay

The new standards include paid waiting time, greater pay transparency, consultation rights before major platform changes, and clearer dispute resolution processes. Union delegates gain paid leave to represent workers. These protections aim to create an industry-wide safety net for hundreds of thousands of workers while preserving the flexibility central to on-demand delivery work.

Final Thoughts

The $31.30 minimum wage represents a major shift for Australia’s gig economy, moving drivers from per-delivery pay to hourly rates with insurance protection. For investors, the mandatory personal accident insurance requirement creates new demand for APAC insurers and raises platform operating costs.

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