Australia's 1 July 2026 changes: minimum wage rise, payday super, tax cuts and more
1 July 2026: minimum wage rise, payday super, tax cuts and more

From 1 July 2026, a raft of new policies across Australia will affect millions of workers, businesses, and consumers. The changes include a minimum wage increase, mandatory payday superannuation, expanded parental leave, tax cuts, new anti-price-gouging measures for supermarkets, and tighter anti-money laundering rules. State-specific reforms cover rental bonds, stamp duty, food waste, motorcycle safety, and e-riders.

Minimum wage rise

About 2.8 million Australians on award and minimum wages will receive a pay increase of 4.75%. The lowest-paid workers – approximately 100,000 people on minimum pay and entry-level rates – will get a 5.97% bump. The national minimum wage will rise to $26.44 per hour, or $1,004.90 per week before tax, effective from the first full pay cycle in July.

Payday super starts

Superannuation must now be paid at the same time as wages, rather than quarterly. This reform targets the more than $3 billion of super that goes unpaid each year. Contributions must reach funds within seven business days of payday, making it easier for workers to track their retirement savings.

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Paid parental leave expanded

Government-funded paid parental leave (PPL) will increase from 24 to 26 weeks, providing a full six months of leave at the national minimum wage. Days reserved for partners will also rise from 15 to 20.

SMS sender ID

Businesses that send branded text messages must register their sender ID – the name appearing at the top of a message instead of a phone number. From July, messages from unregistered senders will be labelled “unverified” and grouped in one thread, designed to protect people from scams by making it harder for fraudsters to impersonate legitimate organisations.

Tax cuts

The lowest marginal tax rate drops from 16% to 15% for income between $18,201 and $45,000. The government says a person earning $45,000 or more will save $268 annually. Pending legislation, a proposed $1,000 instant work-expense deduction will also benefit 6.2 million workers.

Grocery price gouging crackdown

New laws targeting price gouging will be enforced by the ACCC, prohibiting any supermarket with revenue exceeding $30 billion from charging an excessive price for a grocery product compared to the cost of supply plus a reasonable margin. Only Coles and Woolworths currently fall under these rules; both have been under scrutiny over pricing and profits. Breaches will be subject to financial penalties.

Anti-money laundering laws expanded

Anti-money laundering and counter-terrorism laws now apply to more businesses, including real estate, law, accounting, conveyancing, and jewellery sectors. These businesses must register with the Australian Transaction Reports and Analysis Centre (Austrac), verify customer IDs, and report particular transactions.

Changes to the NDIS

Under expanding rules for the National Disability Insurance Scheme (NDIS), providers who work in support roles – including supported independent living and NDIS digital platform providers – must register with the NDIS quality and safeguards commission.

Centrelink indexation

There will be a small increase to payments for Centrelink recipients as regular indexation is applied, although advocates regularly say the high cost of living far outpaces the extra money.

Medicare levy surcharge (MLS) thresholds increase

The base income thresholds at which the MLS starts will increase by $4,000 to $105,000 for singles, and by $8,000 to $210,000 for families. The surcharge is an extra tax – in addition to the 2% Medicare levy – that applies if you earn over a certain income and don’t have private hospital cover.

Instant asset write-off for small businesses

An instant write-off for assets less than $20,000 will continue permanently for small businesses with annual turnover of less than $10 million.

Country of origin seafood labelling

Businesses that serve seafood for immediate consumption must label it: Australian (‘A’), Imported (‘I’), or Mixed origin (‘M’).

Child safety reforms (Queensland)

The Reportable Conduct Scheme (RCS) starts in Queensland. Organisations caring for children must follow new reporting protocols, notifying the Queensland Family and Child Commission when handling allegations of inappropriate behaviour.

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Energy consumption labelling for light vehicles

Under federal road rules, updated energy consumption labelling is mandatory for new light vehicle models supplied for the first time from 1 July 2026.

No more double rental bonds (Victoria)

In Victoria, the portable rental bond scheme will be introduced, allowing renters to move their existing bond to a new property so they are not out of pocket while waiting for a refund.

10 cent refund for wine and spirit bottles (WA)

The Containers for Change program in Western Australia, which offers 10 cent refunds for drink containers, will expand to include wine and spirit bottles. The expansion includes cask wine, flavoured milk, cordial, and concentrated fruit and vegetable juices.

Fuel support payments (WA)

Fuel support payments will be available for all WA driver’s licence, learner’s permit, and provisional and extraordinary licence holders, who can apply for a one-off $100 payment through the ServiceWA app.

Food waste mandates (NSW)

Large NSW premises – including supermarkets, hospitals, and hospitality venues – must implement food organics and garden organics waste services. Smaller businesses and households will follow in stages by 2030.

New L and P-plate motorcyclist rules (NSW)

NSW learner and provisional riders must wear protective gloves, and learners must also wear an approved hi-vis vest or jacket. Non-compliance results in a fine and the loss of at least two demerit points.

Stamp duty axed for first homebuyers (ACT)

First home buyers in the ACT will no longer have to pay conveyance duty – also known as stamp duty. The ACT becomes the first jurisdiction in Australia to completely abolish the tax for first home buyers. Homebuyers who have not owned a property for at least five years, pensioners, and eligible NDIS participants will also benefit from expanded stamp duty exemptions.

Default electricity prices reduced (Victoria)

The Essential Services Commission announced a reduction in Victoria’s default electricity prices to apply from 1 July 2026 to 30 June 2027. Approximately 17% of households (512,000) and 21% of small businesses (62,000) that are on the Victorian default offer will save $84 a year, and small businesses on the offer will save $241 a year.

New e-rider laws (Queensland)

New laws for e-bikes, e-scooters, and other personal mobility devices cap speed limits at 12 km/h on footpaths and when passing pedestrians, and up to 60 km/h on roads and bike lanes. From 1 July, parents can be fined for under 16s riding illegally. After 31 August, Queensland e-riders must be at least 16 and a licence-holder, and 12 to 17-year-olds require parental supervision.

Solar sharer offer (NSW, Queensland, SA)

Households in NSW, south-east Queensland, and South Australia with a smart meter will be able to access at least three hours of free electricity in the middle of the day. The “solar sharer” scheme is a new opt-in program designed to soak up the grid’s cheap excess generation. You don’t need to have rooftop solar panels, or own your home, to participate.