Australia's 1 July 2026 Changes: Minimum Wage Rise, Payday Super, Tax Cuts & More
1 July 2026: Minimum Wage Rise, Payday Super, Tax Cuts & More

Minimum Wage and Award Wage Increases

About 2.8 million Australians on award and minimum wages will receive a pay increase of 4.75% from 1 July 2026. 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. These changes apply from the first full pay cycle in July.

Payday Super: Superannuation Paid with Wages

From 1 July, superannuation must be paid at the same time as wages, rather than quarterly. This reform targets the more than $3 billion in unpaid super each year. Contributions must reach funds within seven business days of payday, making it easier for workers to track their retirement savings.

Paid Parental Leave Expanded to 26 Weeks

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.

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Tax Cuts and Instant Asset Write-Off

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. A proposed $1,000 instant work-expense deduction, pending legislation, will benefit 6.2 million workers. Additionally, an instant write-off for assets under $20,000 will continue permanently for small businesses with annual turnover below $10 million.

Anti-Price Gouging and Supermarket Crackdown

New laws targeting price gouging will be enforced by the ACCC. Any supermarket with revenue exceeding $30 billion—currently only Coles and Woolworths—cannot charge an excessive price for a grocery product compared to the cost of supply plus a reasonable margin. Breaches will result in financial penalties.

SMS Sender ID Changes to Combat Scams

Businesses that send branded text messages must register their sender ID. From July, messages from unregistered senders will be labelled “unverified” and grouped in one thread. This change aims to protect people from scams by making it harder for fraudsters to impersonate legitimate organisations.

Anti-Money Laundering Laws Expanded

Anti-money laundering and counter-terrorism laws now apply to real estate, law, accounting, conveyancing, and jewellery sectors. These businesses must register with Austrac, verify customer IDs, and report particular transactions.

NDIS Provider Registration

Under expanding NDIS rules, providers in support roles—including supported independent living and NDIS digital platform providers—must register with the NDIS quality and safeguards commission.

Centrelink Indexation and Medicare Levy Surcharge

Centrelink payments will see a small increase due to regular indexation. The Medicare levy surcharge (MLS) base income thresholds increase by $4,000 to $105,000 for singles and by $8,000 to $210,000 for families. The surcharge applies to those without private hospital cover earning above these thresholds.

Country of Origin Seafood Labelling

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

State-Specific Changes

Queensland: Child Safety and E-Rider Laws

The Reportable Conduct Scheme (RCS) starts in Queensland, requiring organisations caring for children to notify the Queensland Family and Child Commission when handling allegations. New e-rider laws cap e-bike and e-scooter speeds at 12 km/h on footpaths and when passing pedestrians. E-scooters, e-skateboards, and e-unicycles can be ridden on roads with speed limits up to 60 km/h, including on-road bike lanes, with a maximum speed of 25 km/h. From 1 July, parents can be fined for under 16s riding illegally. After 31 August, e-riders must be at least 16 and hold a licence; 12- to 17-year-olds require parental supervision.

Victoria: Portable Rental Bonds and Default Electricity Prices

The portable rental bond scheme allows renters to move their existing bond to a new property. Victoria’s default electricity prices will be reduced from 1 July 2026 to 30 June 2027, saving approximately 512,000 households $84 a year and 62,000 small businesses $241 a year.

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Western Australia: Container Refund and Fuel Support

The Containers for Change program expands to include wine and spirit bottles, cask wine, flavoured milk, cordial, and concentrated fruit and vegetable juices, offering 10 cent refunds. Fuel support payments of $100 are available for all WA driver’s licence, learner’s permit, and provisional licence holders via the ServiceWA app.

New South Wales: Food Waste Mandates and Motorcyclist Rules

Large NSW premises—including supermarkets, hospitals, and hospitality venues—must implement food organics and garden organics waste services. Smaller businesses and households will follow by 2030. Learner and provisional motorcyclists must wear protective gloves, and learners must wear an approved hi-vis vest or jacket. Non-compliance results in a fine and at least two demerit points.

Australian Capital Territory: Stamp Duty Abolished for First Homebuyers

First home buyers in the ACT will no longer pay conveyance duty (stamp duty). Homebuyers who have not owned a property for at least five years, pensioners, and eligible NDIS participants also benefit from expanded exemptions.

Solar Sharer Offer in NSW, Queensland, and South Australia

Households with a smart meter in NSW, south-east Queensland, and South Australia can access at least three hours of free electricity in the middle of the day through the opt-in solar sharer scheme. Rooftop solar panels or home ownership are not required.