Casual Loading Changes 2026: What Hospitality Owners Must Know

From 1 February 2026, the Fair Work Commission's changes to casual loading in the Hospitality Industry Award will reset how you pay casual staff across Australia. If you're running a café in Melbourne, a pub in Brisbane, or a fine-diner in Sydney, this affects your payroll immediately. We've broken down what's changing, why it matters, and exactly how to prepare.

What's Actually Changing on 1 February 2026?

The Fair Work Commission has restructured casual loading to simplify compliance and close perceived gaps in the Award. Here's the headline: casual loading is moving from a flat 25% top-up to a more nuanced model tied to permanent part-time rates and availability penalties.

The old model (until 31 January 2026):

• Casual staff received a flat 25% loading on their hourly rate, regardless of shift pattern or availability clauses.

The new model (from 1 February 2026 onwards):

• Casual loading is now calculated as the difference between the base casual rate and the permanent part-time equivalent, plus an additional availability loading for venues that impose roster availability clauses.
• For most hospitality venues, this translates to a higher effective loading — often 28–32% depending on your state and award classification.

Why? The Commission found that flat 25% didn't adequately compensate casuals for lack of guaranteed hours, unpredictable rosters, and the cost of juggling multiple jobs.

How Does This Affect Your Payroll?

Will Your Wage Bill Go Up?

Yes, in most cases. The Fair Work Commission's own modelling suggests venues will see a 2–4% increase in casual wage costs across the board. For a mid-sized restaurant in Sydney or Melbourne with 8–12 casual staff, that's typically $15,000–$25,000 per annum in additional payroll.

But here's the nuance: venues that don't use availability clauses (i.e., you don't require casuals to keep certain days free or to be "on call") will see a smaller uplift. Venues that do use availability clauses will see a steeper one.

Does This Apply to All States?

Yes. The Hospitality Industry Award is a national award, so the changes apply equally in Perth, Adelaide, Hobart, and across regional Australia. However, your state's industrial relations body (Fair Work Commission, state-based awards, or enterprise agreements) may layer additional protections on top.

Check your state:

• NSW / ACT: Hospitality Industry Award applies; no state overlay as of 2025.
• Victoria: Hospitality Industry Award applies; Victorian Government may add penalty rate protections for ANZAC Day, Melbourne Cup, Christmas.
• Queensland / WA / SA / NT: Hospitality Industry Award applies; check with your local hospitality association.

The Counter-Intuitive Tactic: Reclassify Casuals as Part-Time (Selectively)

Here's what most owners don't do, but smart ones are exploring: converting high-frequency casuals to part-time contracts can actually lower your wage bill post-February 2026.

Why? Because part-time staff under the Award are paid a base rate without the new 28–32% casual loading. If a casual is already working 20+ hours per week consistently, converting them to a permanent part-time contract at a lower hourly rate (but with paid leave, super contributions, and roster predictability) often costs you less in total compensation.

Example:

• Casual barista: 20 hours/week at $28/hour (with 30% loading post-Feb 2026) = $168/week, ~$8,700/year.
• Part-time barista: 20 hours/week at $24/hour + 4 weeks' leave + 11.5% super = ~$8,200/year.

You save on loading, they gain job security and paid leave. Everyone wins.

The catch: You must offer genuine part-time hours and roster stability. If you convert someone and then cut their hours to 8/week, you've breached the Award and opened yourself to underpayment claims. Use this tactic only for staff who are already high-frequency casuals.

Practical Steps to Prepare Now (Before February 2026)

1. Audit Your Current Casual Roster

Pull your last 12 weeks of payroll and identify:

• Which casuals work 15+ hours/week consistently (conversion candidates).
• Which casuals have availability clauses tied to their contract (these will see the biggest loading increase).
• Your total casual hours as a % of overall labour.

Why now? You need time to negotiate new contracts before the loading changes. If you wait until February, you're scrambling.

2. Review Your Supplier Ordering Against New Payroll Realities

Your wage bill is about to tick up 2–4%. That means your food cost % will shift unless you adjust. Work with your Bidvest, PFD, or Countrywide account manager to lock in volume discounts or negotiate payment terms that ease cash flow.

If you're using Calso's supplier ordering integration, you can model demand forecasts against your new payroll, so you're not over-ordering while you absorb wage increases.

3. Plan for Peak Periods (ANZAC Day, Melbourne Cup, Christmas)

Public holiday penalty rates are separate from casual loading, but they compound. On ANZAC Day (25 April) and Christmas Day (25 December), casuals are entitled to:

• Base rate + casual loading + public holiday penalty (typically 50–150%, depending on the day and whether it's a working day).

For a casual earning $28/hour in late January, ANZAC Day 2026 could cost you $42–$70/hour if they're rostered on. Plan your rosters now to avoid surprise penalty-rate spikes.

4. Communicate with Staff Early

If you're converting casuals to part-time, or adjusting rosters, tell them before February 1. Transparency prevents disputes and helps staff plan their own finances. A simple email explaining the Award changes and what it means for their role goes a long way.

5. Double-Check Your Enterprise Agreement

If your venue operates under an enterprise agreement (rather than the base Award), your agreement may already include casual loading rates higher than 25%. Check with your HR advisor or the Fair Work Commission website to confirm your agreement is still compliant post-February 2026.

Common Mistakes Venues Are Making

Mistake 1: Ignoring availability clauses. Many venues have informal "keep Thursdays free" arrangements with casuals. Post-February 2026, these trigger additional loading. Formalise them or remove them now.

Mistake 2: Not updating payroll software. Your payroll system (MYOB, Xero, Deputy, Guidepoint) may not auto-calculate the new loading. Test it in January 2026 with a trial run. Don't wait until your February pay run.

Mistake 3: Assuming all casuals cost the same. Under the new model, loading varies by classification (kitchenhand vs. head chef), state, and whether availability clauses apply. One-size-fits-all assumptions will land you in trouble with the ATO.

Where Calso Fits In

Managing casual rosters, calculating variable loadings, and forecasting payroll against demand is where most venues slip up. Calso's demand prediction and operational admin tools help you forecast casual hours accurately — so you're not over-rostering in slow weeks or under-staffed during peak service. By linking payroll insights to your supplier ordering and reservation data, you can model wage costs alongside food cost and make smarter hiring decisions before February 2026 hits.

Want Early Access?

Hospitality owners across Australia are preparing for February 2026 right now. If you'd like to get ahead of casual loading changes and streamline your operations before your competitors do, join the Calso waitlist at calso.com.au/join. Founding venues get priority onboarding and direct access to our team — limited spots in your city.