Key Workplace Changes taking effect on 1 July 2026

Following the National Minimum Wage decision by the Fair Work Commission, the increases to the National Minimum Wage to $1,004.90 per week or $26.44 per hour, and the Modern Award increase of 4.75% to minimum rates of pay (provided that the lowest rate in any Modern Award that applies to ongoing employment must be at least the National Minimum Wage, and any entry-level rate that applies to the first 6 months (or less) of employment must be at least $978.10 per week or $25.74 per hour) will take effect from the first full pay period on or after 1 July 2026. The Fair Work Ombudsman has now released the new Pay Guides, see: Minimum wages increase from 1 July 2026 - Fair Work Ombudsman and Pay guides - Fair Work Ombudsman  There are also changes to the Children's Services Award and Pharmacy Award pay rates, see: Minimum wages increase from 1 July 2026 - Fair Work Ombudsman  If your business is covered by an enterprise agreement, please check to see if the minimum wage increase applies, and noting that the base pay rate in an enterprise agreement cannot be less than the base pay rate in the relevant Modern Award.

Also a reminder that Pay Day superannuation obligations will take effect from 1 July 2026, and contributions must be made within 7 business days of each pay cycle (rather than quarterly), and calculated based on 'Qualifying Earnings' which is a new term that brings together Ordinary Time Earnings (OTE) and other payments (including commissions (note-the only additional payment type will be commissions for work done entirely outside ordinary hours) and salary sacrifice contributions). The superannuation guarantee rate of 12% has not changed, and eligibility for superannuation guarantee contributions has not changed, so it will continue to include independent contractors paid mainly for their labour, see: About Payday Super – Superannuation Changes | Australian Taxation Office  and What payments are qualifying earnings | Australian Taxation Office

The High-Income Threshold will also increase from tomorrow to $190,100 per annum.  The new compensation cap will therefore rise to $95,050.  The Contractor High-Income Threshold will also be adjusted to the same amount, see: High income threshold | Fair Work Commission and Contractor high income threshold | Fair Work Commission

There is also an expansion of Paid Parental Leave entitlements from 1 July 2026, with the Federal Government's funded Paid Parental Leave scheme increasing from 24 weeks (120 days) to 26 weeks (130 days) for eligible parents whose child is born or adopted on or after that date, and where there are 2 eligible parents 4 weeks (20 days) Paid Parental Leave will be reserved for the other parent on a 'use it or lose it' basis, with superannuation on Paid Parental Leave by the ATO, see: Payment during parental leave - Fair Work Ombudsman and Paid Parental Leave Superannuation Contribution | Australian Taxation Office  Unpaid flexible parental leave is increasing to 130 days for a child who is born or placed for adoption on or after 1 July 2026, see: Types of parental leave - Fair Work Ombudsman

If you are operating in Victoria, the Victorian Government has introduced legislation to establish right to work from home 2 days a week from 1 September 2026. We will provide a more detailed update should these changes be passed, see: Work From Home Protected In Law From 1 September | Premier.  The Victorian Government has also brought forward the date on which restrictions on the use of Non-Disclosure Agreements (NDAs) in sexual harassment claims from 1 July 2026 (previously 1 November 2026), see: Restricting Non-disclosure Agreements (Sexual Harassment at Work) Act 2025 | vic.gov.au

With South Australia now aligning with the national approach to psychosocial hazards from 1 July 2026, this will mean that psychosocial hazard obligations will now be enforceable in all jurisdictions from 1 July 2026.

If you have any questions about the impact of these wage increases and/or changes, or what your business needs to do in light of the above, please contact Justine at IR Legal Solutions.