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Rule register

Employment Leave Act replaces the Holidays Act

enactedpayroll6 Aug 2028in 1.9 years

Casual and additional hours stop attracting 8% holiday pay and start attracting a 12.5% leave compensation payment. Everybody quotes that 4.5 point gap as though it were the whole answer. Two other changes run the other way: annual leave is paid at one rate instead of the greater of two, and sick leave is counted in hours instead of days.

What it does to four different businesses

The same rule, four shapes. If one number were the answer there would be no need for any of this.

BusinessA yearWorked out from
Hospitality, 24 staffcasual-heavy — where the leave rules bite−$1,816 to $21,7354.5 points on $483,000 of casual and additional wages is $21,735. Against that, the single-rate rule and hours-based sick leave give back an estimated $17,445.
Trades, 18 staff and a fleetovertime and vans−$15,433 to $13,1224.5 points on $291,600 of casual and additional wages is $13,122. Against that, the single-rate rule and hours-based sick leave give back an estimated $21,152.
Aged care, 60 stafflong shifts — some of it comes back−$113,893 to $33,6604.5 points on $748,000 of casual and additional wages is $33,660. Against that, the single-rate rule and hours-based sick leave give back an estimated $109,299.
Professional services, 15salaried — most of this misses you−$2,464 to $2,4304.5 points on $54,000 of casual and additional wages is $2,430. Against that, the single-rate rule and hours-based sick leave give back an estimated $3,625.

What you can do about it

The casual share is the whole line. Hours inside an agreed pattern accrue leave at 7.69%; the same hours outside one are bought out at 12.5%. Work that is genuinely regular is cheaper written into the agreement.

How much to trust this

rate set in legislation. This is law with a commencement date. The date will not move without another Act and the rate is written down. It belongs in a budget.

Source: MBIE — Holidays Act reform · in the register since 27 Aug 2026 · model last revised 28 Aug 2026

What changed in the model

Split the estimate into three lines rather than one. The 12.5% on casual hours is certain; the single-rate and hours-based sick-leave credits that run the other way are estimated, so the range is now asymmetric instead of pretending all three are equally solid.

This one has a proper model behind it

The figures above are a screen: they work from nine numbers about a business. LeaveShift models this rule per employee or per vehicle, from your own data, and will disagree with this page — it knows more.

Price it against your business

This rule alongside the other 4, on a dated calendar, from nine numbers.

Price my business