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Stream 6 — Task 6.3: Staffing Model
Internal working document. Not for public release. Stage 1: Gauging Interest. Prepared: May 2026. Requires steering committee review before being used in any financial model, community presentation, or external communication.
ALL wage figures in this document are ILLUSTRATIVE — derived from published Award rates and market research, not from a commissioned payroll model. They must be confirmed against a payroll compliance review before inclusion in any business plan, financial projection, or prospectus.
CRITICAL GUARDRAIL: Operational roles in a trading hospitality business must be filled by paid employees engaged under the Fair Work Act 2009 and the relevant Modern Award. Volunteer labour cannot substitute for paid operational shifts. This is recorded as a risk in the project’s own audit. It is non-negotiable.
Purpose
This document sets out a minimum viable staffing model for the Commercial Hotel in a trading state, maps roles against the Hospitality Industry (General) Award 2020 (MA000009), and identifies the penalty-rate implications that are particularly material for a regional venue with limited ability to trade selectively.
The model covers opening-state operations (Option A: core pub, bar and food). Accommodation, events, and other revenue streams add staffing costs on top — those are noted but not modelled here.
1. The Award Framework
The Hospitality Industry (General) Award 2020 (MA000009) is the applicable Modern Award for employees in hotels, pubs, taverns, and bars in Australia. It is administered by the Fair Work Commission and the Fair Work Ombudsman.
Key features relevant to this project:
- Minimum rates apply by classification level (see section 2). From the first full pay period on or after 1 July 2025, Award rates increased by 3.5%.
- Casual loading is 25% on top of the ordinary rate for casual employees.
- Penalty rates apply for evening, weekend, and public-holiday work. These are not optional — they are legally required.
- Allowances include meal allowances, split-shift allowances, and tools-of-trade allowances — these vary by classification and circumstance.
- Evening and night loadings under HIGA are expressed as flat-dollar amounts per hour, not as a percentage of the ordinary rate. Applying them as a percentage is a systematic underpayment error. (Source: RosterElf HIGA guide, citing Fair Work Ombudsman.)
- Penalty for non-compliance: Civil penalties of up to $93,900 per contravention. (Source: RosterElf HIGA guide.)
FACT (Award): The Award applies to this venue regardless of the co-op’s legal structure, ownership model, or community purpose. Community ownership does not create an exemption from the Award.
2. Classification Structure (HIGA)
The HIGA classification structure runs from Introductory/Level 1 through to Level 6+ for senior kitchen and management roles. The levels most relevant to pub operations:
| Level | Typical roles | Notes |
|---|---|---|
| Introductory | New entrant (first 3 months) | One-time classification; minimum 3-month period only |
| Level 1 | Food and beverage attendant grade 1 (basic service, no prior experience) | Entry-level bar/wait staff |
| Level 2 | Food and beverage attendant grade 2 (cash handling, glassware, basic barista) | Standard bar/service staff |
| Level 3 | Food and beverage attendant grade 3 (cocktails, cellar work, senior service); Kitchen hand grade 2 | Experienced bar staff; kitchen support |
| Level 4 | Supervisor / team leader; Cook grade 1 (trade qualified, simple menu) | Bar supervisor, cook |
| Level 5 | Cook grade 2 / Chef de partie equivalent; Cellar manager | Experienced cook, section work |
| Level 6 | Chef (trade-qualified, complex menu); Senior supervisory | Chef, senior kitchen |
| Above award | Head Chef / Executive Chef; Publican / GM | Typically negotiated above Award minimum |
ILLUSTRATIVE 2025–26 base rates (full-time, ordinary hours):
- Level 1: approximately $24.95/hr (ILLUSTRATIVE — Fair Work 1 July 2025 rate, 3.5% increase applied; confirm against current Pay Guide)
- Level 2: approximately $25.50/hr (ILLUSTRATIVE)
- Level 3: approximately $26.10/hr (ILLUSTRATIVE)
- Level 4 / supervisor: approximately $27.50–$29.00/hr (ILLUSTRATIVE)
- Level 5–6 / chef: approximately $29.00–$33.00/hr (ILLUSTRATIVE)
ILLUSTRATIVE — these figures are indicative only, derived from published search results citing the Fair Work Ombudsman’s 2025–26 Pay Guide. Confirm all rates against the current official Pay Guide at fairwork.gov.au before including in any payroll model.
3. Penalty Rate Implications
This is the section most likely to be underestimated in a community-run pub’s early financial modelling.
A regional pub in Cygnet that aims to serve locals and visitors cannot trade only Monday–Friday in ordinary hours. The demand profile is almost certainly highest on weekends, public holidays, and Friday–Saturday evenings. Those are also the most expensive hours to staff.
3.1 Weekend penalties (HIGA indicative)
| Day | Full-time / Part-time loading | Casual loading (on top of base + 25%) |
|---|---|---|
| Saturday | Approximately 125% of ordinary rate | Applies separately to casual loading |
| Sunday | Approximately 150% of ordinary rate | Applies separately to casual loading |
ILLUSTRATIVE — confirm against current HIGA Pay Guide. Loadings change with Award variation.
3.2 Public holiday penalties (HIGA indicative)
Public holidays attract significantly higher rates — typically 225–250% of the ordinary rate for full-time and part-time employees under HIGA.
Tasmania has approximately 12 public holidays per year, including state-specific holidays (Eight Hours Day, Show Day for the relevant area). A pub that closes on all public holidays loses significant trading days; a pub that trades on all of them absorbs the penalty-rate cost.
RISK: Public holidays in a small regional pub are a genuine financial decision point. If there is insufficient volume to cover the penalty-rate premium, trading on a public holiday is loss-making. This needs to be explicit in the operating model.
3.3 Evening / night loadings (HIGA)
As noted above, evening and night loadings under HIGA are expressed as flat-dollar amounts per hour, not percentages. The specific rates are published in the Pay Guide. These apply to work after 10pm (night) and between certain evening hours (varies by classification).
A pub with late-night trading hours or entertainment licence endorsement will attract these loadings for all eligible staff on those shifts.
3.4 Illustrative penalty-rate cost example
For a casual Level 2 bar attendant (base ~$25.50/hr + 25% casual loading = ~$31.88/hr ordinary):
- Saturday rate: approximately $39.75–$42.00/hr (ILLUSTRATIVE)
- Sunday rate: approximately $47.00–$50.00/hr (ILLUSTRATIVE)
- Public holiday rate: approximately $70.00–$80.00/hr (ILLUSTRATIVE)
These figures compound across a full weekend team. A Saturday evening requiring 4 bar and service staff for 5 hours = 20 casual penalty-rate hours at approximately $40/hr = approximately $800 in wages for that shift alone, before kitchen staff, supervisors, or cleaning.
ALL figures ILLUSTRATIVE. The point is not the exact number — it is that weekend and public holiday staffing costs are structurally higher than weekday costs, and the financial model must reflect this.
4. Minimum Viable Opening Team
The following is the minimum team structure for a core-pub operation (bar + food, limited hours, no accommodation open). This is a floor, not a design.
Permanent / salaried roles
| Role | HIGA level | ILLUSTRATIVE annual salary | Notes |
|---|---|---|---|
| Publican / General Manager | Above Award | $85,000–$95,000 | Must be the natural-person liquor licence holder or nominee under s.22 Liquor Licensing Act 1990 (Tas). 5+ years regional pub management experience. |
| Head Chef / Executive Chef | Above Award / Level 6+ | $70,000–$85,000 | Trade-qualified. Food Safety Supervisor role. Manages kitchen compliance. |
| Bar Manager | Above Award / Level 4–5 | $60,000–$70,000 | RSA-trained. Manages bar operations, stock, and cellar. Supervises casual bar staff. |
ILLUSTRATIVE — salary ranges drawn from operating_model_source.txt (community proposal draft, pre-audit) and market benchmarks. Not derived from a payroll model.
Casual / part-time operational roles
| Role | HIGA level | ILLUSTRATIVE casual rate (weekday) | Estimated hours/week (opening state) |
|---|---|---|---|
| Bar and floor staff (×2 minimum per shift) | Level 1–2 | ~$31–$34/hr | 20–30 hrs per person |
| Kitchen hand / cook’s assistant | Level 2–3 | ~$32–$35/hr | 15–25 hrs |
| Cleaner | Level 1 | ~$31/hr | 5–10 hrs |
ILLUSTRATIVE. Actual casual rosters depend on trading hours, covers, and seasonality.
Total ILLUSTRATIVE wage cost (opening state, minimum)
| Category | ILLUSTRATIVE annual range |
|---|---|
| Permanent salaried roles (3) | $215,000–$250,000 (plus superannuation at 11.5%, plus WorkCover premium) |
| Casual operational staff (est. 4–5 FTE equivalent over casual/part-time roster) | $80,000–$140,000 (depending on hours, day-mix, and weekend ratio) |
| Total indicative wage cost | $295,000–$390,000 |
| Add superannuation (11.5%) | ~$34,000–$45,000 |
| Add WorkCover premium (hospitality — rate varies; ASSUMPTION ~1.5–2.5% of remuneration) | ~$4,500–$9,750 |
| Total indicative labour on-cost | $333,000–$445,000 |
ILLUSTRATIVE — all figures approximate, pre-model. The actual figure depends on trading hours, revenue-driven casual hours, Weekend/PH day mix, and confirmed Award rates. This range is intended to convey order-of-magnitude significance, not precision.
This is the project’s single largest operating cost line. A feasibility model that does not start here is not credible.
5. The Volunteer Substitution Risk
The project’s own audit (referenced in the feasibility briefing and workplans) confirms:
“The operating model assumes Award-compliant staffing. No volunteer substitution for operational shifts.”
This is reiterated here because it is the most common undercount in community-run hospitality proposals.
What volunteers can legitimately do (subject to legal advice on each case):
- Attend governance meetings and working groups (as co-op members)
- Assist at community events as attendees or member-participants (not as substitutes for paid roles)
- Contribute skills to non-operational activities (grant writing, marketing, community liaison)
What volunteers cannot do (without risking Fair Work liability):
- Staff bar shifts in place of a paid bar attendant
- Work in the kitchen in place of a paid cook or kitchen hand
- Clean the premises in place of a paid cleaner, as part of a regular roster
- Perform any role that would otherwise require a paid employee
RISK: If the co-op’s financial model depends — even partially — on volunteer labour substituting for paid staff, that model is legally exposed under the Fair Work Act 2009 and the Award. A Fair Work Inspector can deem volunteers to be employees and require payment of back wages, penalties, and superannuation. The reputational risk to a community co-op of a Fair Work underpayment finding would be severe.
6. Additional Staffing Costs for Other Revenue Options
If the operating model extends beyond core pub:
| Revenue option | Additional role(s) required | ILLUSTRATIVE additional cost |
|---|---|---|
| B: Accommodation | Accommodation coordinator or housekeeper (part-time); front desk (possibly absorbed by Bar Manager initially) | $20,000–$40,000 p.a. |
| C: Events | Events coordinator (casual/contract) | $10,000–$20,000 p.a. |
| F: Garden | Garden coordinator (if commercial) — MUST be paid if commercial activity | $15,000–$30,000 p.a. |
ILLUSTRATIVE. All additional roles must comply with Award or applicable employment instrument.
7. Gaps and Next Steps
| Item | Label | Action needed |
|---|---|---|
| Current HIGA Pay Guide rates (1 July 2025–30 June 2026) | FACT (available) | Download and confirm against Fair Work Pay Guide MA000009 |
| Tasmanian WorkCover rate for hospitality classification | UNKNOWN | WorkCover Tasmania industry rate table — desktop researchable |
| Realistic trading hours and day mix | ASSUMPTION | Needs operator experience; input from hospitality/licensing seat |
| Whether Publican role can be combined with licence-holder role | CHOICE + legal advice | Stream 2 liquor licensing research (task 2.2) |
| Payroll tax threshold (Tasmania) | UNKNOWN | Tasmanian Revenue Office — threshold currently ~$1.25M remuneration; likely below threshold at opening state, but confirm |
Sources: Hospitality Industry (General) Award 2020 (MA000009); Fair Work Ombudsman Pay Guide; RosterElf HIGA Pay Guide 2025/26 (pay-rate figures); FitzHR Hospitality Award Guide 2026; operating_model_source.txt (salary benchmarks from pre-audit community proposal draft); workplans.md Stream 6 guardrails; project feasibility_and_costs_briefing.md.