Important Payroll & Employment Changes from 1 July 2026
If you are a business with employees, there are several important payroll and compliance changes taking effect from 1 July 2026 that may affect your business.
Superannuation Guarantee (SG) – rate unchanged
The SG rate remains at 12% and no further legislated increases are currently scheduled.
Payday Super Commences
From 1 July 2026, employers will be required to pay superannuation contributions at the same time they pay employees’ wages or salary, replacing the current quarterly payment system. Contributions generally need to reach the employee’s super fund within 7 business days of payday.
The ATO has indicated that super contributions received on or before 28 July 2026 will first reduce any super owing for the June 2026 quarter. Any remaining amount will then be applied under the new Payday Super rules.
For this reason, we recommend businesses plan ahead and consider paying the final June quarter super early, or at the same time as the first July Payday Super payment, to avoid allocation and cashflow issues.
This is one of the most significant payroll changes in recent years and may affect cashflows for many businesses.
There is another major change as well – the ATO’s Small Business Superannuation Clearing House (SBSCH) will close permanently from 1 July 2026. If you currently use the SBSCH, now is the time to start looking at other payment options. You should also make sure you download any records you may need before the service closes.
What employers should do before the changes commence:
- Review payroll software settings.
- Ensure employee super fund details are accurate.
- Consider the impact on cashflow and payroll processes.
- Confirm their payroll provider is ready for Payday Super reporting and payments.
Fair Work Commission Annual Wage Review 2026
Following the 2026 Annual Wage Review, the Fair Work Commission has announced increases effective from the first full pay period on or after 1 July 2026 to:
- The National Minimum Wage
- Modern Award minimum wages
This means if your weekly pay period starts on Wednesday, the new rates will apply on or after 1st July 2026. If 1st July falls in the middle of a pay period, the new payrates will apply to the next pay period.
National Minimum Wage Increase
The National Minimum Wage will increase by 6%, resulting in:
- $1,004.90 per week (based on a 38-hour week)
- $26.44 per hour
This is the first time Australia’s National Minimum Wage has exceeded $1,000 per week.
Award Minimum Wage Increase
Minimum wage rates in modern awards will increase by 4.75% from the first full pay period on or after 1 July 2026. Employers should review employee classifications and update payroll systems to ensure compliance with the new award rates.
Businesses covered by enterprise agreement
If you are covered by an enterprise agreement, the minimum wage increase may apply to your business or group of businesses because the base pay rate in an enterprise agreement should not be below the base pay rate in the relevant award.
Payroll Software Updates
Most major payroll providers, including Xero, MYOB and other cloud-based payroll systems, are expected to release updates to incorporate the new wage rates and Payday Super requirements.
Employers are expected to ensure their software is updated and tested before the first July 2026 payroll run.
What Businesses Should Do Now
With increased wage costs and the introduction of Payday Super, businesses should:
- Review payroll and superannuation processes.
- Update employee pay rates where required.
- Verify employee super fund information.
- Assess cashflow impacts of more frequent super payments.
- Confirm payroll software is configured correctly before 1 July 2026.
These changes are expected to increase compliance obligations for employers and may require additional planning to ensure payroll and superannuation obligations are met on time. As well as cashflow planning in order to avoid any negative impact on business operations.
If you require any support of guidance in transitioning into the new changes, we encourage you to reach out to the team HQB.
– Brad Sheaves
15.06.2026
This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.
