Australia is introducing new minimum standards for people delivering food and groceries through digital platforms. From August 17, 2026, they will be entitled to minimum pay of A$31.30 per hour during the time they are actively completing deliveries, as well as personal accident insurance while working. The decision was approved by Australia’s Fair Work Commission and represents a significant change in the regulation of the gig economy. People working through delivery apps are typically classified as independent contractors rather than employees and have therefore traditionally been excluded from many protections available to regular workers. The new minimum rate of A$31.30 is higher than Australia’s national minimum wage of A$26.44 per hour. There is, however, an important distinction – the new rate applies only to what the rules describe as “engaged time”. Engaged time covers the period between accepting a delivery job and completing it. Time spent logged into an app while waiting for a new order is not automatically counted as paid working time under the new standard.
In addition to minimum pay, delivery platforms will be required to provide workers with a reasonable minimum level of personal accident insurance. Gig workers will, however, remain responsible for maintaining the required insurance for vehicles they use for deliveries. Around 250,000 workers in Australia are expected to benefit from the new standards. Uber Eats and DoorDash, two of the major companies operating in the sector, have supported the new model alongside the Transport Workers’ Union. The union described the decision as a landmark moment for Australia’s gig economy, arguing that platform workers had remained outside the country’s traditional workplace protection system for too long. The companies said the new framework could demonstrate that stronger worker protections can coexist with the flexibility associated with gig work. The changes were made possible by legislation passed in Australia in 2023 and 2024. Those reforms gave the Fair Work Commission powers to establish minimum standards covering pay and insurance for certain categories of workers operating through digital platforms.
The Australian changes also come amid wider international efforts to establish clearer standards for platform workers. In June, the International Labour Organization adopted international labour standards addressing work in the platform economy, covering areas including pay, safety and social protection. Australia’s new system does not automatically turn delivery couriers into conventional employees. They retain the flexibility associated with platform work while receiving a defined minimum level of protection concerning pay and accident insurance. This balance is one of the most significant elements of the reform. Rather than fully treating couriers as traditional employees, Australia is introducing specific minimum standards designed around the way digital delivery platforms operate. The new rules take effect on August 17, and their implementation will provide an indication of how this regulatory model works in practice and whether a similar approach could be considered by other countries seeking to regulate the rapidly expanding platform economy.
