Question 1

How is overtime calculated in Australia?

Accepted Answer

Standard overtime in Australia is time-and-a-half (1.5x base rate) for the first 2-3 hours of overtime in a day, then double time (2x) after that. Saturday work is typically 1.5x and Sunday work is 2x or higher. Casuals add the 25% loading on top. Exact rates and the cutoff between 1.5x and 2x are set by your modern award or enterprise agreement.

Question 2

When does overtime apply?

Accepted Answer

Overtime triggers when you exceed your ordinary hours of work, which is usually 38 hours per week (or 7.6 hours per day) for full-time employees under most awards. For part-time employees, overtime applies above the agreed hours per week or per day in your contract. Some awards also pay overtime for work outside the 'ordinary span of hours' (e.g. before 7am or after 7pm).

Question 3

Are casuals entitled to overtime?

Accepted Answer

Yes. Casuals receive overtime penalties on top of the 25% casual loading. Most awards apply this multiplicatively: casual time-and-a-half = 1.5 × 1.25 = 1.875x base rate. A handful of awards (notably Manufacturing) use additive — 1.5 + 0.25 = 1.75x. Check your specific award.

Question 4

Is overtime taxed differently?

Accepted Answer

No. Overtime is part of your assessable income and is taxed at your normal marginal rate. However, large overtime pay in one pay period can trigger PAYG withholding at a higher rate due to how the tax tables work — you may receive a refund at year-end if too much was withheld. Overtime also doesn't typically attract super (it's excluded from 'ordinary time earnings' under SG legislation).

Question 5

Can my employer make me work overtime?

Accepted Answer

Section 62 of the Fair Work Act allows employers to request 'reasonable additional hours' beyond the 38-hour standard, but you can refuse if the request is unreasonable. Reasonableness considers things like risk to your health and safety, family responsibilities, the type of role, the notice given, and any compensation. Employers cannot punish you for reasonable refusal — that would be a workplace rights breach.

Question 6

What is reasonable overtime?

Accepted Answer

There's no fixed limit, but the Fair Work Commission considers occasional and modest overtime (a few hours per week) as generally reasonable for most roles. Routine 50+ hour weeks, last-minute requests, and overtime that conflicts with personal or family responsibilities can be unreasonable. Salaried roles often have implied 'reasonable additional hours' baked in, but the same reasonableness test applies.

Question 7

Can salaried employees claim overtime?

Accepted Answer

Salaried employees are usually paid for 'reasonable additional hours' as part of the package. The salary must equal or exceed what the award would have paid (including overtime) when calculated over a year — the 'better off overall' test. If your salary doesn't reflect substantial overtime, you may have an underpayment claim. High-income earners above the threshold ($175,000 for 2025-26 indexed) may be exempt from award provisions entirely.

Question 8

How should overtime be recorded?

Accepted Answer

Employers must keep accurate records of hours worked, including overtime, for at least 7 years under the Fair Work regulations. Time-and-attendance records, signed timesheets, or rosters with exact start/end times are standard. If your employer doesn't track overtime properly, keep your own log — texts, calendar entries, photos of timesheets — in case of a dispute. Without records, claims become much harder to prove.

Question 9

What's the difference between overtime and penalty rates?

Accepted Answer

Overtime applies when you work beyond ordinary hours (e.g. more than 38 hours/week). Penalty rates apply for working at certain times — Saturday, Sunday, public holidays, late nights, early mornings — regardless of how many hours you've worked that week. They can stack: if you work overtime on a Sunday, you get the higher of the two (or sometimes both, depending on award). The terms are often used interchangeably but they're technically distinct.

Question 10

What if my employer won't pay overtime?

Accepted Answer

Step one: check your award on fairwork.gov.au and calculate what you're owed. Step two: raise it in writing with your employer with the calculation attached. Most underpayments are honest mistakes that get fixed quickly. If they refuse or stall, lodge a complaint with the Fair Work Ombudsman, who can investigate and recover unpaid wages. Underpayment claims can be made for up to 6 years back.

Scenario	Permanent rate	Casual rate (×1.25)
First 2-3 hrs weekday OT	×1.5	×1.875
Remaining weekday OT	×2.0	×2.5
Saturday work	×1.5	×1.875
Sunday work	×2.0	×2.5
Public holiday work	×2.5	×2.75

How overtime pay works in Australia

Standard overtime structure

When overtime kicks in

Reasonable additional hours

Worked examples

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