Workplace Wrap—July 2026

As we find ourselves in the new financial year, a number of the key financial thresholds relating to employees have changed. Click here to view our summary of the key thresholds for the 2026/2027 financial year. 

From 1 July 2026, the national minimum wage has increased by 6% to AU$26.44 per hour. Award minimum wages have also risen, by 4.75%. 

The Fair Work Commission noted that determination of the review was particularly challenging this year because of the unusual degree of complexity in the economic and business performance in Australia. Ultimately, the Fair Work Commission cited moderate wage growth, increasing inflation, a predicted slowing economy over the next year, and uncertainty in the Middle East as reasons for its decisions. 

Echoing its concerns from the 2025 national wage review, the Fair Work Commission was again fundamentally guided by its view that most Award-reliant employees found the real value of their wages to be lower than prior to the July 2021-post-panedmic inflation spike. The Fair Work Commission noted the resulting 'real wage gap' is particularly affecting the living standards of the low paid and their capacity to meet non-discretionary needs. 

The Fair Work Commission also determined that structural changes to Award wages were necessary, electing to eliminate classifications paid at the lowest wage rates; C13 and C14. 

The C13 rate is the lowest wage rate applicable to ongoing employment in the Award system, while the C14 rate is a transitional wage rate applicable to a limited initial period of employment. The phasing out of the C13 and C14 wage rates will occur in three stages, and C12 will then become the lowest wage rate for ongoing employment. The first of the three stages involves additional, proportional increases to the relevant wage rates. 

The Fair Work Commission otherwise noted it intends to continue its review of particular Award classifications with the objective of eliminating gender-based undervaluation. The Fair Work Commission confirmed review of priority Awards is now complete and will see a phasing in of wage increases accordingly. The Fair Work Commission intends to have completed the entirety of this review by the delivery of the national wage decision next year.  

At 1 July 2026, the Superannuation Guarantee rate will remain unchanged at 12%. An annual maximum contribution base of AU$270,830 for the 2027 income year will apply. 

This means that once an employee's ordinary time earnings exceed AU$270,830 per annum, employers are not required to make further superannuation contributions under the Superannuation guarantee legislation. If separate contractual obligations to pay superannuation apply, these obligations are unaffected.

With the introduction of Payday Super, there will be no per quarter maximum contribution base. 

The changes will apply from 1 July 2026.

The Fair Work Act’s high income threshold will also be indexed from 1 July 2026, and has increased to AU$190,100. Non-award and non-enterprise agreement covered employees who earn in excess of AU$190,100 will be unable to bring an unfair dismissal claim.

The value of penalty units applicable to the Fair Work Act has increased with effect from 1 July 2026 from AU$330 per unit to AU$364 per unit. 

What Should You Be Doing From 1 July?

Employers should:

• Review annualised salary arrangements to ensure that the annualised wage rate is sufficient to meet or exceed the employees’ minimum award or minimum wage entitlements taking into account the 4.75% or 6% increase respectively.
• Update payroll systems and processes to ensure that wages and superannuation contributions take into account 1 July 2026 increases and removal of the per quarter maximum contribution following the introduction of Payday Super.
• Review enterprise agreement pay rates (where applicable) and ensure the pay rates do not fall below the applicable modern award base rate or the national minimum wage (as applicable).
• Ensure all employees who are eligible are being paid the appropriate super guarantee. 
• Be mindful of the new high income threshold of AU$190,100.

How Can We Help?

If you have any questions about the effect of the 1 July 2026 threshold increases on your payment obligations as an employer, please contact our Labour, Employment and Workplace Safety team.