What changes on 1 July 2026

Every employee covered by a modern award or paid the National Minimum Wage. Approximately 2.6 million workers under awards directly, plus flow-on impact across enterprise agreements that benchmark to award rates.

Update payroll on the first full pay period on or after 1 July 2026. Recheck classification rates for any junior employees whose age has tipped them into a new bracket.

Every Australian employer with employees eligible for the Superannuation Guarantee. The change is the biggest payroll-systems shift in two decades — affecting ~1.3 million employers.

Confirm your payroll software is Payday Super-ready before 1 July 2026. Map your pay cycle: if you pay weekly, expect 52 super payments per year instead of 4. Reconcile any gap in contributions in Q4 2025-26.

All eligible primary and secondary carers with a baby born or adopted on or after 1 July 2026. The extension also affects the 'Dad and Partner Pay' equivalent, which has been merged into the unified PPL scheme.

Update your parental leave policies and any internal documentation to reflect the 26-week entitlement. Inform expecting employees of the change in writing.

All employers paying SG. Particularly relevant for employers who package salary as 'inclusive of super' — a 12% inclusive package needs different treatment to a 12% on-top package.

Confirm your salary inclusive vs exclusive treatment is correct and consistent in employment contracts. Reconfirm super on bonuses and commissions.

Every Australian taxpayer. The PAYG withholding tax tables update from 1 July, and payroll software must reflect the new thresholds.

Update payroll tax tables before the first July payroll run. Reissue tax-treatment summaries to any salary-packaged employees.

Employers of high earners (typically those on $250K+ base salary). The cap means there's an income above which SG isn't compulsory — though most employers still pay above the cap as policy.

Reconfirm your super treatment for high earners is consistent with the new MSCB. Document any policy decision to pay above the cap.