From 1st July 2026, key changes to the National Minimum Wage and Minimum Award Rates came into effect. These changes affect payroll, budgeting, and compliance responsibilities for small businesses across Australia. Preparing early will help avoid unnecessary stress as the new financial year begins.
Minimum Wage Increase
The National Minimum Wage will increase by 4.75%. For employees not covered by an award or enterprise agreement, the new base rates will be:
- $26.44 per hour.
- $1,004.90 per week (based on a 38-hour week).
- $52,254.80 per year.
The new rates will apply from the first full pay period starting on or after 1st July 2026. For example, if your business runs weekly pay cycles beginning on Mondays, the increase will apply from Monday, 6th July 2026. Payroll systems will automatically update award rates. However, bookkeepers should still confirm that each employee is linked to the correct award classification and that no manual rates or custom pay items have been overlooked.
Must Do: Check any repeating direct debit payment systems to amend the amount of pay based on the new rates.
Source: Minimum wages increase from 1 July 2026 – Fair Work Ombudsman
New Pay Rates Available
To access the new pay rates now, you can:
- Use the FWO Pay and Conditions Tool. (To access the new rates in the Pay Calculator, set the calculation date to 1 July 2026 or later.)
- Download an updated pay guide from Pay guides.
For further information, please read Minimum wages – Fair Work Ombudsman
Source: Changes to default super funds in awards – Fair Work Ombudsman
For more information or assistance with any bookkeeping, reporting or BAS needs:
Sue Esplin 02 4339 7870
