Fair Work Act 2009

s 160 - Variation of modern award to remove ambiguity or uncertainty or correct error

Variation on the Commission's own initiative - Plumbing and Fire Sprinklers Award 2020

Variation on the Commission's own initiative - Plumbing and Fire Sprinklers Award 2020 - mileage allowance for travel beyond defined radius - meaning of defined radius - apparent cross-referencing error.

• [1] This matter has been commenced by the Commission on its own initiative under s 160 of the Fair Work Act 2009 (Cth) (FW Act) to deal with an apparent error in clause 21.9(f) of the Plumbing and Fire Sprinklers Award 2020[1] (PFS Award).

[2] Section 160 of the FW Act provides that the Commission may make a determination varying a modern award to remove ambiguity or uncertainty or correct an error, and may do so on its own initiative.

[3] Clause 21 of the PFS Award sets out Allowances. Clause 21.9 sets out Expense-related allowances - fares and travelling time. Clause 21.9(f) provides:

(f) Mileage allowance for travel beyond defined radius

An employee entitled to the additional travelling time allowance beyond the defined radius under clause 21.9(e) and who uses their own vehicle for such travel is to be paid an amount equivalent to $0.54 per kilometre as reimbursement for the additional fuel costs incurred covering the combined distance from the defined radius to the job site and return to the defined radius.

[4] Clause 21.9(f) refers to an entitlement to 'the additional travelling time allowance beyond the defined radius under clause 21.9(e)'. Clause 21.9(e) provides:

(e) Transfer between job sites during working hours

(i) Employees transferred from one job site to another during ordinary working hours must be paid their ordinary rate of pay for the time occupied in travelling, and unless transported by the employer, will be reimbursed the reasonable cost of fares by the most convenient public transport between such job sites.

(ii) Where the employer requests an employee to use their own vehicle to effect such a transfer, and the employee agrees to do so the employee will be paid an allowance at the rate of $0.98 per kilometre.

[5] It is apparent that clause 21.9(e) makes no reference to, and does not operate by reference to, a 'defined radius'. On its face therefore the cross-reference in clause 21.9(f) to clause 21.9(e) does not make sense.

[6] Clause 21.9(c) refers to Standard travelling time allowance for travel within a 'defined radius' and provides a definition of 'defined radius' at 21.9(c)(ii):

(c) Standard travelling time allowance

(i) The standard travelling time component is an amount based on travel within a defined radius set out in clause 21.9(c)(ii).

• for plumbing and mechanical services and irrigation installer employees, the standard travelling time component is an amount the equivalent of 25% of the minimum hourly rate of the employee's classification per day; and
• for fire sprinkler fitter employees the standard travelling time component is an amount the equivalent of 75% of the minimum hourly rate of the employee's classification per day.

(ii) The defined radius is 50 kms from the centre of employment as determined under clause 21.9(c)(iv).

(iii) An employer having determined its centre of employment under clause 21.9(c)(iv) will not change that centre without at least 28 days' prior notice to each of its employees.

(iv) An employer may determine its centre of employment by reference to one of the following options:

• the employer's normal base establishment or workshop;
• the GPO, or Principal Post Office of the capital city or major regional centre for all employees whose base establishment or workshop is within the defined radius from the said Post office;
• the local Post Office closest to the employer's establishment or workshop beyond the defined radius of the Post Office listed above; or
• in the case of employees sent to a distant job (as defined) the place at which such employees are domiciled with the approval of their employer, for that distant job.

[7] Clause 21.9(d) provides for a travelling time allowance for travel beyond the defined radius as follows:

(d) Travelling time allowance beyond the defined radius

(i) Where an employee is required to work at a job site beyond the defined radius, an additional travelling time component is to be paid per day of either:

• an amount equivalent to 25% of the respective minimum hourly rate; or
• an amount equivalent to the actual time incurred in travelling the distance from the defined radius to the job site and the return from the job site to the defined radius;

(ii) For the purposes of clause 21.9(d)(i), the actual time incurred in travelling is to be calculated by reference to a speed not exceeding the legal speed limit.

[8] It may be noted that the allowance for which clause 21.9(d) provides is described in subclause (i) as 'an additional travel component'.

[9] On a plain reading the reference to clause 21.9(e) appearing in clause 21.9(f) is an error. It is clause 21.9(d) which provides for an additional travelling time allowance beyond the 'defined radius', which expression is defined in clause 21.9(c)(ii).

[10] Having regard to these matters, my provisional view is that the identified error should be corrected under s 160 by varying clause 21.9(f) to provide as follows (with varied/additional cross-references emphasised):

(f) Mileage allowance for travel beyond defined radius

An employee entitled to the additional travelling time allowance under clause 21.9(d) for travel beyond the defined radius under clause 21.9(c)(ii) and who uses their own vehicle for such travel is to be paid an amount equivalent to $0.54 per kilometre as reimbursement for the additional fuel costs incurred covering the combined distance from the defined radius to the job site and return to the defined radius.

[11] A draft determination is published with this statement. Interested parties are invited to file submissions regarding the provisional view expressed in this statement and the accompanying draft determination. Submissions must be sent to awards@fwc.gov.au by 12.00pm (AEST) on 24 April 2026.

[12] In the absence of any responsive views, the variation will be made in the same terms as proposed in the draft determination.

[1] [MA000036].

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