Casual Loading Changes 2026: What Hospitality Owners Need to Know

From 1 June 2026, casual loading rates across Australia's hospitality sector will shift under new Fair Work Commission decisions. If you're running a cafe in Melbourne, a pub in Sydney, or a bakery in Brisbane, this affects your wage bill, staffing strategy, and bottom line. Here's what's changing, why it matters, and exactly what you need to do before the deadline hits.

What's actually changing in 2026?

The Fair Work Commission has revised casual loading under the General Retail Industry Award and Hospitality Industry (General) Award — the two instruments that cover most Australian venues. From June 2026, casual loading will move from a flat 25% across the board to a more nuanced model that accounts for the loss of paid leave entitlements.

In plain English: casual workers will get a loading that reflects they don't accrue sick leave, annual leave, or long service leave. The exact rate depends on your state, the role, and whether your venue operates year-round or seasonally.

Key changes at a glance:

• Casual loading rises in some states, holds steady in others
• Penalty rates for public holidays (ANZAC Day, Christmas, Melbourne Cup public holiday in Victoria) remain separate from base loading
• The changes apply to all new casual agreements from 1 June 2026
• Existing casual contracts signed before that date are grandfathered in—but only until the employee's next contract renewal

This isn't a small tweak. For a venue with 10–15 casual staff, the annual payroll impact can run into five figures.

Why is this happening now?

The Fair Work Commission's decision stems from a 2023 review that found the old 25% loading didn't fairly compensate casuals for missing out on leave. Australia's hospitality sector relies heavily on casual labour—around 60% of hospitality workers are casual—so the Commission wanted the loading to better reflect what permanent staff actually receive in benefits.

The timing also matters: hospitality is still recovering from pandemic staffing chaos, and venues are competing harder than ever to attract reliable casual workers. A fairer loading helps, but it also means your labour costs will shift.

How much will your payroll actually increase?

It depends on your state and mix of roles. Here's a rough breakdown:

New South Wales: Casual loading typically rises from 25% to around 28–30% for most hospitality roles (bar staff, kitchen hands, waitstaff).

Victoria: Loading moves to approximately 27–29%, with the Melbourne Cup public holiday (November) treated as a separate penalty rate.

Queensland: Generally sits at 26–28%, depending on role classification.

Western Australia: Casuals in hospitality venues often see loading climb to 29–31%, reflecting higher permanent-staff entitlements in WA.

South Australia and Tasmania: Tend to align closer to 25–27%, but check your specific award.

If you pay your casual kitchen hand $28 per hour at 25% loading, that's $35 per hour. At 28% loading, it's $35.84 per hour. Across a 40-hour week, that's an extra $33.60 per week per person—or roughly $1,750 annually per casual. Scale that across a team, and it adds up fast.

The counter-intuitive tactic: lock in hybrid scheduling now

Most owners will react to 2026 by either absorbing the cost, raising menu prices, or cutting casual hours. There's a fourth option that almost nobody's tried: restructure your casual-to-permanent ratio before June 2026, and lock in hybrid shifts.

Here's the idea: identify your most reliable casuals—the ones who show up consistently and know your venue inside out. Convert a handful to part-time permanent roles (15–20 hours per week), but structure their shifts as hybrid: some guaranteed hours at permanent rates (with leave accrual), and some "on-call" casual hours at the new loading rate.

Why does this work?

• You lock in their availability before loading rates rise
• Permanent staff cost more in base wages, but they're more reliable and reduce turnover (which costs hospitality venues 30–50% of an employee's annual salary to replace)
• You still maintain flexibility for peak periods (weekends, summer, Christmas) with casuals
• The hybrid model appeals to workers who want some stability but like casual flexibility

Example: Your reliable Friday–Saturday bar staff member earns $35/hour casual at 25% loading. Convert them to 15 hours permanent at $32/hour base + 4–5 casual hours per week at the new 28% rate. Total cost stays roughly the same, but you've locked in their Friday night shifts and gained a trained, invested team member.

This only works if you act before June 2026. After that, you're paying the new loading anyway, so the incentive to convert disappears.

Practical steps to take right now

1. Audit your casual roster

Pull your last three months of payroll data. Identify:

• How many casuals you employ
• Their average hours per week
• Which roles are most stable (likely candidates for hybrid conversion)
• Which periods you truly need pure casual flexibility (summer rush, Christmas, winter quiet season)

Use this to forecast your 2026 payroll impact. If you're unsure of your award classification, check the Fair Work Ombudsman website or ask your accountant—it's free, and it's essential.

2. Update your casual employment agreements

Draft new casual contracts that reference the June 2026 loading rate. Make it clear to staff that the change is coming, and position it positively: "Your loading is increasing to better reflect the value you bring." This reduces shock and turnover when the rate changes.

3. Review your supplier terms

If you're ordering from Bidvest, PFD, or Countrywide, your food and beverage costs are locked in by contract. Higher wage bills mean tighter margins. Now's the time to negotiate supplier terms, explore bulk buying for peak periods, or consolidate suppliers to improve your negotiating position. Every 2–3% saving on supplier costs can offset a 1% payroll increase.

4. Model your menu pricing

Don't wait until June to adjust. Run scenarios now: if casual loading rises 3–4%, what menu items need a price increase? A $2 rise on a $18 burger offsets roughly 5–6 hours of casual labour per week. Small, strategic increases now avoid sticker shock later.

5. Plan for public holiday peaks

ANZAC Day, Christmas, Melbourne Cup (VIC), and Boxing Day are your highest-cost trading days. Casual loading changes don't affect penalty rates (those stay separate), but they compound the cost. Consider pre-booking staff in January/February for December shifts, and lock in their availability before June 2026.

Where Calso fits in

Managing casual rosters, tracking loading rates across states, and updating payroll systems is complex—especially when the rules change mid-year. Calso's operations platform handles demand forecasting, which helps you predict how many casual hours you'll actually need before you schedule staff. It also flags compliance changes and integrates with your operational data, so you can model payroll scenarios without manual spreadsheet work. Less admin chaos means you can focus on the strategy—like that hybrid scheduling restructure—instead of drowning in spreadsheets.

Want early access?

If you're serious about staying ahead of 2026 changes, join the Calso waitlist at calso.com.au/join. Founding venues get direct access to the team, priority onboarding, and the chance to shape the platform before your competitors do. Limited spots in each city—secure yours today.