Short answer: not always, but you need a real reason, and you have to answer in writing within 21 days.
When a casual can ask
A casual can notify you that they want to change to full-time or part-time once they have been employed for at least 6 months, or 12 months if you are a small business employer. They need to believe they no longer fit the definition of a casual, which in plain terms means they are working a regular pattern with an ongoing expectation of work.
What you have to do
Respond in writing within 21 days of getting the notice. Either accept and confirm whether they become full-time or part-time, the hours and the start date, or refuse and give the reason. Talk to the employee before you decide. It is expected, and it usually sorts out the practical questions anyway.
When you can say no
You can only refuse if the employee still genuinely meets the definition of a casual, or on fair and reasonable operational grounds. That means things like a substantial change to how the business is organised, a significant impact on how it operates, or a conversion that would put you in breach of the award or a required recruitment process. “We prefer casuals” is not a ground.
If you accept
The change takes effect from the first day of the first full pay period after your response, unless you both agree on another date. Update the contract, the pay rate (the casual loading comes off), and the leave accruals in payroll.
One more thing
You can also offer permanency yourself at any time. If someone has been doing the same shifts for a year, that conversation is usually better started by you than by them.
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This is general guidance for Australian employers, not advice on your specific situation. Awards, agreements and contracts can change the answer. When in doubt, ask.
Quick answer
Does a casual have the right to become permanent?
After 6 months (12 with a small business employer) a casual who is working a regular pattern can notify you they want to be permanent. You must respond in writing within 21 days and can only refuse if they still meet the casual definition or on fair and reasonable operational grounds.
