Site allowances under CFMEU pattern EBAs

A site allowance under a CFMEU pattern EBA is usually an hourly payment for working on a qualifying project. The rate depends on the approved enterprise agreement, project value, location and applicable allowance schedule.

There is no single national CFMEU site allowance

Here is the important bit: a CFMEU pattern EBA is a bargaining template. The enforceable document is the enterprise agreement approved by the Fair Work Commission and covering that employer and employee.

Two builders working on the same project can have different site allowance obligations. One agreement might use project value bands. Another might name a particular project or geographic area. A subcontractor could also be covered by a different agreement from the head contractor.

Do not copy the rate from another contractor’s payroll or an old tender worksheet. Get the employee’s current approved agreement, including schedules and later variations.

Our EBA payroll hub covers the wider process for checking construction agreement clauses.

How to find the correct rate

Start with the site allowance clause and its linked schedule. Check these points in order:

1. Is the employee covered by the agreement?
2. Does the project satisfy the clause’s definition of a qualifying site?
3. Is the allowance based on total project value, the employer’s package value, location or a named project?
4. Does the agreement say whether project value includes GST, variations or later increases?
5. Which rate schedule and effective date apply to the pay period?
6. Is the allowance payable for ordinary hours only, or every hour worked?
7. Does the rate increase during the life of the agreement?

Project value can be the tricky part. The agreement may place responsibility on the employer to obtain the value from the client or head contractor. If the value moves into a higher band after variations, check whether the higher allowance starts from a stated date or has another adjustment rule.

Never assume that a value band operates retrospectively. Use the wording in the approved agreement.

Site allowance compared with other construction payments

These payments can appear together, but they do different jobs.

Payment	What it generally covers	Common payroll treatment to check
Site allowance	Conditions or disabilities associated with a qualifying project	Hourly rate, project band, effective date and eligible hours
Industry allowance	General features of construction work	Classification clause, ordinary rate interaction and overtime basis
Fares and travel allowance	Cost or inconvenience of getting to work	Daily eligibility, distance rules and tax treatment
Special rates	Particular work such as confined spaces, heights or dirty work	Hours performing the task, minimum payment and stacking rules
Living-away-from-home payment	Extra costs when required to live away from home	Evidence, accommodation arrangements and ATO treatment

Do not merge these into one payroll code merely because they are all called allowances. Separate codes make rate changes, backpay and audits much easier to handle.

Four numbers payroll should keep in view

The EBA supplies the actual site allowance rate. Several national payroll rules still sit around that payment:

• As at October 2026, the National Employment Standards set a maximum of 38 ordinary hours a week, plus reasonable additional hours. The agreement can arrange those hours differently.
• As at October 2026, the statutory super guarantee rate is 12%. An EBA can require more than the statutory minimum.
• As at October 2026, employee and payroll records generally need to be retained for 7 years.
• As at October 2026, a payslip must generally be given within 1 working day of payment.

Those figures do not replace the EBA. They are checks around it.

Calculating the allowance

Suppose the applicable schedule states a site allowance of $5.20 an hour and says it is payable for every hour worked. This is an illustration only, not a quoted CFMEU rate.

An employee works 38 ordinary hours and 10 overtime hours:

48 hours × $5.20 = $249.60 site allowance

That does not automatically mean the allowance itself is multiplied by 150% or 200%. Some agreements treat it as a flat amount for each hour worked. Others include particular allowances when building the overtime rate.

Read the overtime clause, the definition of the ordinary hourly rate and any wording attached to the allowance schedule. Do not decide from the payroll code name.

Super, tax and STP reporting

A site allowance is usually taxable income, so PAYG withholding will generally apply. Its Single Touch Payroll treatment depends on what the payment compensates for and how the ATO reporting categories apply.

Super needs a separate check. An allowance paid for ordinary working conditions will often form part of ordinary time earnings for statutory super purposes. Amounts that relate solely to overtime may be treated differently under ordinary time earnings rules.

CFMEU pattern agreements can also contain a weekly super contribution obligation that is more generous than the statutory calculation. Check the actual clause rather than relying only on 12%. The minimum weekly super clause guide explains that comparison.

What happens during leave or an RDO

A site allowance is not automatically payable during annual leave, personal leave, public holidays or rostered days off. It is also not automatically excluded.

Check whether the agreement says the allowance is paid for time worked, forms part of the ordinary rate, continues during paid absences, or is included in an all-purpose rate. Different wording produces different results.

Accrued RDO arrangements need special attention. Payroll may need to calculate the allowance when hours are worked, when the RDO is taken, or through a prescribed contribution formula. Follow the agreement’s RDO clause.

A practical payroll check

For each project, keep a short allowance register showing:

• the approved agreement and clause number
• the project name and address
• the confirmed project value and evidence source
• whether GST and variations are included
• the applicable value band
• the rate and commencement date
• eligible classifications or employees
• treatment of overtime, leave and RDOs
• the next scheduled rate review.

Then reconcile hours from timekeeping to payroll. A worker transferred between projects in the same week may need two site allowance rates. If a rate increase was missed, calculate backpay by pay period and keep the workings with the payroll records.

The safe rule is simple: identify the binding agreement, confirm the project band, apply the rate effective for that period, and let the exact clause decide which hours attract payment.