1 July 2026 Workplace Changes: What Employers Need to Know

Written By Leela Rantall

From 1 July 2026, several key updates will affect Australian employers, including changes to wages, superannuation, and parental leave. Now is the time to ensure your payroll systems, cash flow, and compliance processes are ready.

Key changes at a glance

  • National Minimum Wage rises to $26.44/hour ($1,004.90/week)

  • Modern award wages increase by 4.75%

  • Payday Super begins (super paid with each pay cycle)

  • Paid Parental Leave expands to 26 weeks

  • Superannuation will be paid on government-funded parental leave

 

1. Wage increases

From the first full pay period on or after 1 July 2026:

  • Minimum and award wages must be updated

  • Allowances, penalties, and loadings may also change

What to do:

  • Review employee classifications and award coverage

  • Update payroll systems and salary arrangements

  • Check overtime, penalties, and allowances

  • Communicate changes to staff

 

2. Payday Super

Super contributions must now be:

  • Paid at the same time as wages

  • Received by the fund within 7 business days

Why it matters: This is a major shift from quarterly payments and will impact cash flow and payroll processes.

What to do:

  • Update payroll systems

  • Adjust cash flow planning

  • Review payroll procedures and controls

  • Ensure timely super payments to avoid penalties

 

3. Expanded Paid Parental Leave

  • Increases to 26 weeks (130 days)

  • “Use-it-or-lose-it” portion rises from 3 to 4 weeks per parent

Employer considerations:

  • Workforce planning and leave management

  • Payroll administration and communication

  • Updating internal parental leave policies

 

4. Super on Paid Parental Leave

Superannuation (12%) will now be paid on government-funded parental leave.

What this means:

  • Employees benefit from continued super contributions

  • Employers need to understand how this is administered and reported

 

What businesses should do now

To prepare, employers should:

  • Review and update pay rates and awards

  • Ensure payroll systems are ready for Payday Super

  • Adjust cash flow forecasts

  • Check employment agreements and salary structures

  • Update parental leave policies

  • Train payroll and HR teams

 

Final thoughts

While wage increases are important, Payday Super will have the biggest operational impact for many businesses. Planning ahead is essential to avoid cash flow pressure, payroll errors, and compliance risks.

 

Need help?

We can assist with:

  • Payroll compliance reviews

  • Award rate checks

  • Cash flow planning

  • Payroll system updates

  • Guidance on parental leave and super changes

Get in touch with our team to ensure you’re ready.

 

This article provides general information only and should not be relied on as legal or employment advice.

Leela Rantall
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