A number of employment law and payroll changes will take effect from 1 July 2026. This article sets out the key changes employers should be aware of and prepare for.

Minimum wage and award wage increases

From the first full pay period starting on or after 1 July 2026, the National Minimum Wage (NMW) will increase to $1,004.90 per week, or $26.44 per hour. This represents an increase of 4.75%, as set down in the recent NMW decision.

Employers should not simply update base hourly rates. The increase may also affect overtime rates, penalty rates, allowances and leave loading. This means that employers who pay annual salaries or “above award” rates should also check whether those rates still leave employees better off when compared against their minimum award entitlements.

Employers should also be aware that some changes are award-specific, and may not apply across all industries. For example, there are ongoing or proposed changes affecting certain awards, including in the retail, fast food, pharmacy, health and children’s services sectors.

Rankin Business Lawyers can assist by reviewing applicable award coverage, checking employee classifications, assessing whether current pay rates remain compliant in the wake of the NMW decision, and advising on whether annual salary or above-award arrangements need to be updated.

Updated Fair Work Information Statement (FWIS)

An updated FWIS will be available from 1 July 2026. As before, employers are required to provide the FWIS to new employees before, or as soon as practicable after, they start employment. It is important to update onboarding packs and internal HR templates to ensure the correct version of the FWIS is provided to new employees from 1 July 2026 onwards.

Payday super starts from 1 July 2026

From 1 July 2026, employers are required to pay superannuation at the same time as wages and salary, rather than on a quarterly basis. In practice, this means the contribution must reach employees’ nominated super funds within seven business days of payday. For a new employee, the first contribution must reach the fund within 20 business days. This represents a significant operational change for many employers. Businesses should review their payroll systems to ensure employees’ superannuation is processed correctly.

Fair Work Commission high income threshold adjustment

The Fair Work Commission’s high income threshold is adjusted each year from 1 July. The threshold can determine whether an employee can bring an unfair dismissal claim, and affect the maximum compensation that may be awarded if the claim succeeds.

In practical terms, the threshold is most relevant for senior or higher-paid employees who are not covered by a modern award or enterprise agreement. An employee may still be protected from unfair dismissal (meaning they can bring an unfair dismissal claim and have their termination reviewed for fairness) if they are covered by a modern award or enterprise agreement, even if their earnings are above the high income threshold. Employers should therefore not assume that a higher salary automatically removes unfair dismissal risk.

The threshold is also relevant to the unfair dismissal compensation cap, which is generally the lesser of half of the high income threshold or an amount equivalent to 26 weeks of the employee’s remuneration.

Yuanchao Chen
Lawyer