As we approach the end of the 2025/26 financial year, payroll professionals are managing a rare convergence of significant legislative changes, all taking effect within weeks of each other. From minimum wage increases to superannuation reform, the volume and significance of change arriving on 1 July 2026 requires immediate attention and careful preparation.
Annual Wage Review - Decision Imminent - The Fair Work Commission's Annual Wage Review decision is expected any day now, with the Australian Council of Trade Unions pushing for a five percent increase that would lift the National Minimum Wage to approximately $26.19 per hour. Once confirmed, payroll teams will need to update pay rates, review modern award obligations and ensure all affected employees are captured before the first pay run of the new financial year.
Income Tax Rate Changes - From 1 July 2026, the marginal tax rate for income between $18,201 and $45,000 drops to 15%. Payroll systems and tax tables must be updated prior to the first payroll run in July to ensure employees receive the correct take-home pay from day one.
SCHADS Award -Already in Effect - Changes to the SCHADS Award took effect 1 June 2026, introducing revised arrangements around sleepover hours. Organisations in the aged care, disability and community services sectors should confirm their payroll systems and rosters already reflect these changes.
Payday Super - Commencing 1 July 2026 - Perhaps the most significant reform in a generation, Payday Super requires employers to pay superannuation contributions within seven business days of each payday, replacing the longstanding quarterly payment cycle. The operational and cash flow implications are substantial and payroll teams should be working closely with finance and HR leadership to ensure readiness.
Now is the time to brief your key stakeholders. Share this update with your finance, HR and operations teams to ensure your organisation crosses into the new financial year fully prepared.
