2026 Guide
Every component of a compliant Australian labour hire charge rate in 2026 — line by line, with a worked example.
Direct answer
A compliant Australian labour hire charge rate in 2026 bundles seven line items: base wage, casual loading (typically 25%), superannuation (12% from 1 July 2025), workers' compensation premium, state payroll tax (SA 4.95%, NSW 5.45%, QLD 4.75%), public liability insurance plus payroll and supervision overhead, and the agency margin (typically 15–25%). GST is added on top. Through EIR Labour Hire, all-in rates range from $41 to $103 per hour ex-GST depending on classification.
Source: EIR Labour Hire 2026 Charge Rate Guide. Statutory rates per ATO (super), Fair Work Commission (penalty rates) and state revenue offices (payroll tax).
The starting point. Set federally by Fair Work via the relevant Modern Award (Building & Construction MA000020, Manufacturing MA000010, Storage Services MA000084), or by a registered Enterprise Agreement (EBA) where one applies on site. Award rates increase annually on 1 July following the Fair Work Commission Annual Wage Review.
Under most Modern Awards, a casual worker is paid a 25% loading on top of the base hourly rate. The loading is paid in lieu of annual leave, personal/sick leave, paid public holidays and notice on termination. Adds approximately $6–$9/hr to the base depending on classification.
The Superannuation Guarantee rate is 12% from 1 July 2025 (per ATO, no further legislated increases scheduled). Calculated on ordinary time earnings, not penalty hours. Adds approximately $4–$5/hr to the base on standard hours.
Premium varies by state and industry classification. SA (ReturnToWorkSA) 1.85–4.5%, NSW (icare) 2.0–6.0%, QLD (WorkCover QLD) 1.5–5.0% of wages. Adds approximately $1–$4/hr depending on industry. Higher-risk industries (construction, civil) sit at the top of the range.
SA 4.95% (threshold $1.5M), NSW 5.45% (threshold $1.2M, plus Mental Health Levy surcharge above $10M), QLD 4.75% (threshold $1.3M). This is the only line item that meaningfully varies between SA, NSW and QLD — and why NSW all-in rates are typically 1–2% higher.
Covers $20M public liability insurance, Single Touch Payroll processing, pre-employment checks, site inductions, ticket verification (white card, forklift LF/LO, EWP), PPE supply, account management, rostering, award interpretation, timesheet processing and site supervision where applicable. Adds approximately $3–$6/hr.
The provider's gross margin to cover business operating costs. Industry-standard range is 15–25% of the underlying labour cost. EIR's where-in-the-band pricing reflects this — single worker on short booking sits at the top of the band; crew of 5+ on 13+ weeks sits at the bottom.
Base award rate: $31/hr (Construction CW1, casual). Building back up to the all-in charge rate.
| Component | Add per hour | Running total |
|---|---|---|
| Base wage (CW1 casual) | — | $31.00 |
| Casual loading (25%) | already in casual rate | $31.00 |
| Superannuation (12%) | $3.72 | $34.72 |
| Workers' comp (avg 3.5%, SA construction) | $1.21 | $35.93 |
| Payroll tax (SA 4.95%) | $1.78 | $37.71 |
| Public liability + payroll admin + PPE + supervision | $5.00 | $42.71 |
| Agency margin (~22% on the labour cost stack) | ~$10.00 | ~$52.71 |
Final all-in charge rate to client: ~$52/hr ex-GST. This sits in the middle of EIR's published CW1 band ($51–$64/hr) — the bottom of the band reflects volume + duration discount; the top reflects single-worker, short-booking premium.
Some items apply on top of the standard hourly rate. They should be itemised separately in your quote — if they aren't, ask.
| Item | When it applies | Typical cost |
|---|---|---|
| Penalty rates (Sat, Sun, public holiday) | When worker works those hours | 1.5x / 2x / 2.5x on those hours |
| Overtime | Hours beyond standard daily/weekly cap | 1.5x first 2hr, 2x thereafter (blended ~1.75x) |
| Night / afternoon shift loading | Shift starts after cut-off | 15–25% loading |
| Site allowances | EBA or site agreement specifies | Project-specific |
| Travel time / vehicle / fuel | Remote sites or worker-supplied vehicle | Project-specific |
| Specialised PPE | Site requires beyond standard PPE | At cost |
| Specialised tickets (HRWL, confined space, EWP) | Role requires non-standard tickets | At cost or as higher classification |
Penalty rates and overtime are the two biggest variables — model them in the labour hire cost calculator before signing an engagement.
When a labour hire agency says “all-inclusive”, a compliant rate should include the seven components above for the standard hours quoted. Penalty hours, overtime and site-specific allowances are typically additional.
If a quote omits any of the seven components, that's a compliance red flag. Common omissions to watch for:
Ask any provider you're considering: “Show me a sample timesheet and the rate breakdown to back out each of the 7 components.” A reputable agency answers that question without hesitation.
A compliant Australian labour hire charge rate bundles seven components: base wage (Modern Award rate), casual loading (25%), superannuation (12% from 1 July 2025), workers' compensation insurance, state payroll tax (SA 4.95%, NSW 5.45%, QLD 4.75%), public liability insurance plus payroll and supervision overhead, and the agency margin (typically 15–25%). GST is added on top.
No — labour hire charge rates in Australia are typically quoted ex-GST. GST applies at 10% on top of the all-in hourly rate. Always confirm whether a quote is inclusive or exclusive of GST before comparing.
The main variation is state payroll tax: SA 4.95%, QLD 4.75%, NSW 5.45%. That pushes NSW all-in rates roughly 1–2% higher than SA or QLD for the same classification. Base award rates are federal and identical across states.
Superannuation is 12% of ordinary time earnings as of 1 July 2025 (per the ATO). It's calculated on the base wage plus casual loading, but not on penalty rate or overtime hours. The labour hire agency pays the super to the worker's nominated fund — the host client pays the agency the all-in hourly rate that includes this 12%.
Yes — a compliant Australian labour hire charge rate includes workers' compensation insurance premium. The labour hire agency is the employer for workers' comp purposes and holds the policy. If a quote excludes workers' comp, that exposes the host client to liability and is a compliance red flag.
Because the rate includes seven components, not just the wage. Roughly half the gap between the worker's hourly take-home and the host client's hourly charge is statutory on-costs (super, workers' comp, payroll tax, leave loading). The other half is the agency's operating costs and margin.
Ask the agency for a sample timesheet plus the rate calculation back to the seven components above. Any reputable labour hire provider will share this. EIR provides it on request.
Try the EIR labour hire cost calculator — it shows every line item, every loading and every penalty rate applied. Or call 1800 LABOUR for a site-specific quote.
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