Rates
Site Allowance Explained: Tax, Super and Rates
A site allowance is an extra payment to construction workers for the conditions on a particular project, usually an hourly amount set in an enterprise agreement and scaled by project value. It is taxable: the ATO lists site allowances as working-conditions allowances that are withheld from and included in gross pay. Super is generally payable when paid for ordinary hours.
This guide covers where site allowances come from, how they differ from award allowances, tax and super treatment, and budgeting. General information, not legal advice. Yakka Labour is the hiring marketplace, not the workwear brand with a similar name.
What is a site allowance in construction?
The term is used loosely on Australian sites. It normally means one of two things:
- Project or site allowance under an enterprise agreement: many building company agreements, including those negotiated with the CFMEU, include an hourly allowance that applies to particular projects. The amount often rises with the total project value and is meant to compensate for the conditions and disabilities of that site.
- Award allowances for site conditions: the Building and Construction General On-site Award does not have a single site allowance. Instead it pays an industry allowance to everyone, plus specific allowances such as multistorey, underground, height and special rates for particular tasks.
If someone tells you a site allowance applies, ask which instrument it comes from and the clause number. Registered enterprise agreements are public: the Fair Work Commission's document search lets anyone look up an agreement by employer name and read the allowance clause directly, which avoids relying on site gossip about what a project pays.
How is a site allowance different from the award industry allowance?
| Feature | Award industry allowance | Enterprise agreement site allowance |
|---|---|---|
| Source | Building and Construction General On-site Award, clause 22 | The specific registered agreement |
| Who gets it | All employees covered by the award, by sector | Employees covered by that agreement on qualifying projects |
| Amount | $67.15/week general building; $53.72/week residential (from 1 July 2026) | Set by the agreement, often hourly and tiered by project value |
| Basis | Weekly, paid for all purposes of the award | Usually per hour worked; check the clause for overtime and leave |
The award figures come from the consolidated Building and Construction General On-site Award. Agreement amounts vary widely, so never budget from a figure quoted for another company's agreement.
To find the actual figure, ask the employer for the name of the agreement, then look it up in the Fair Work Commission's enterprise agreement search, which publishes approved agreements in full. The site allowance clause usually sits with the other allowances and lists the project value bands, the hourly amount and any conditions. Read the dates too, because agreements often step allowances up each year.
Is site allowance paid per hour?
Under most enterprise agreements, yes: an amount per hour worked on the qualifying project, sometimes with a daily or weekly cap. Some agreements pay it only for hours on site, not for travel or leave; others pay it for overtime hours too. The award's comparable allowances use different units: the industry allowance is weekly, while the multistorey allowance is hourly, from $0.77 per hour up to the 15th floor to $2.24 per hour from the 61st floor, from 1 July 2026.
Is site allowance taxable?
Yes. The ATO's guidance on withholding for allowances lists site allowances under working conditions, qualifications or special duties allowances, alongside crib, danger, dirt, height, shift and travelling time. Employers must withhold tax and include the total allowance in gross payments. For workers, that means it shows up as income on your tax return and is taxed at your marginal rate. Being taxable does not make it deductible; you cannot claim a deduction just because you received it.
Worked example: Leah, a CW2 scaffolder in Southbank, works 38 hours on a project where her agreement pays a site allowance. The allowance is added to her gross pay for the week, PAYG tax is withheld on the total, and it appears as an allowance on her payslip and in her Single Touch Payroll income statement. At tax time she reports it as income; she can still claim genuine work-related expenses such as protective clothing she paid for herself, but those are claimed on their own merits.
Does site allowance attract superannuation?
Generally yes, when it is paid for ordinary hours. The ATO's list of qualifying earnings treats task allowances for adverse conditions and industry allowances as ordinary time earnings, and therefore qualifying earnings for super guarantee. Expense allowances expected to be fully spent, such as some tool allowances, are not. Since 1 July 2026, super guarantee is 12% of qualifying earnings, paid within seven business days of each payday under Payday Super.
Where part of a site allowance is paid for overtime hours, that portion may not be ordinary time earnings. Many enterprise agreements also require contributions above the legal minimum, so check the agreement as well as the ATO rules.
How do I budget site allowances on a job?
Build the allowance into your labour rate before you quote. Worked example: a subcontractor runs a crew of six on a commercial project in Docklands for 10 weeks, 40 hours a week, and the applicable agreement sets a hypothetical site allowance of $4.00 per hour.
- Allowance hours: 6 workers × 40 hours × 10 weeks = 2,400 hours.
- Allowance cost: 2,400 × $4.00 = $9,600.
- Super at 12% on the ordinary-hours portion (say 2,280 hours, or $9,120): about $1,094.
- Add payroll tax and workers compensation on the allowance where they apply in your state.
The $4.00 figure is an illustration only; use the amount in the agreement that actually covers your workers. For overall labour budgeting see how much labour hire costs and how to pay labourers.
Who is entitled to a site allowance?
Before accepting a job offer that mentions a site allowance, workers should ask four questions: which agreement it comes from, the hourly amount, whether it is paid for overtime, rain days and leave, and whether it is listed separately on the payslip. Hirers should be able to answer all four in writing.
Only employees covered by an agreement that includes one, working on a project that qualifies under that agreement. Award-covered workers get the award allowances instead. Independent contractors do not receive allowances; they price their own costs into their rate. Labour hire workers may be entitled to the host's rates if a regulated labour hire arrangement order applies. If you are unsure which instrument covers you, read building and construction award levels or contact Fair Work.
How do I hire site labour on Yakka?
Post the job with the suburb, project type, tickets and an AUD hourly rate. If an agreement or site allowance applies, state the total hourly rate and what it includes so workers can compare jobs fairly. Workers apply directly and you agree the rate in writing in the app, then pay through the platform. Browse general labourers near you.
Frequently asked questions
Is site allowance paid when it rains and work stops?
It depends on the enterprise agreement. Some agreements pay the site allowance for all paid hours, including inclement weather time, while others pay it only for hours actually worked on site. The award has its own inclement weather clause. Read the allowance and inclement weather clauses in the agreement that covers you, or ask the employer in writing.
Is site allowance included in casual loading calculations?
Only if the instrument says so. Under the construction award, the industry allowance forms part of the ordinary hourly rate and is paid for all purposes, so casual loading applies to it. Enterprise agreement site allowances are often flat hourly amounts not subject to loadings. Check whether the agreement describes the allowance as all-purpose.
Does site allowance show on my payslip?
It should. Fair Work requires payslips to show allowances that can be separated from the ordinary hourly rate, and the ATO requires allowances to be reported through Single Touch Payroll. Check each payslip lists the allowance, the hours it was paid for and the rate. Raise any gap with your employer promptly.
Do apprentices get site allowance?
Often yes, if the enterprise agreement covering them includes apprentices in the allowance clause, although some agreements pay apprentices a reduced amount. Under the construction award, apprentices receive the industry allowance and other award allowances as the award sets out. Check the agreement or the apprentice section of the Fair Work pay guide.
Can a subcontractor claim site allowance from the head contractor?
Not as an allowance. Site allowances are employee entitlements under an agreement. A genuine subcontractor running their own business prices site conditions into their quote or contract rate. If a worker labelled a subcontractor is really an employee, they may be entitled to employee entitlements, which is a sham contracting risk for the business engaging them.
Official sources
Award rates, licences and safety rules change. Check the official source before you hire or take on a shift.
- Fair Work Ombudsman — pay guidesMinimum award rates, casual loading and penalty rates
- Fair Work Pay CalculatorWork out the minimum pay for a specific award and shift
- Australian Taxation Office — super for employersSuperannuation guarantee obligations when you pay workers
