The new financial year officially kicked off on 1 July and with it a host of workplace and legislative changed came into effect. Outlined below are some of the key changes that members should be aware of.
From 1 July 2026, employers will be required to pay Superannuation Guarantee (SG) contributions at the same time they pay wages, replacing the previous quarterly payment model. SG payments must be received by employees’ super funds within seven calendar days of each payday. Failures to make timely payments may incur interest and penalties.
Each year, the Fair Work Commission conduct a wage review and increase to the minimum Award rates of pay. This year increase is published as 4.75% and is effective from the first full pay period on or after 1 July 2026.
From 1 July 2026, paid parental leave increases from 24 to 26 weeks, based on a five-day work week. The leave is flexible and can be used until the child turns two. Employers should plan ahead for longer leave coverage and consider how this may affect resourcing on your sites.
This year, the high income threshold has increased from $183,100.00 to $190,100.00. This means that, amongst other things, an employee who earns more than $190,100.00 annually may not be eligible to lodge an unfair dismissal claim in cases of termination.
If an employee brings an unfair dismissal claim, the Fair Work Commission may award compensation up to a maximum legislated amount. From 1 July 2026 the maximum amount of compensation the Commission may award for unfair dismissal claims is capped at $95,050.00.
Members are encouraged to review documentation and systems to ensure they are not caught out by the changes taking effect in the new financial year.
If you need more information or guidance about these changes, please contact the Workplace Relations Team on:
📞 (02) 6175 5900
📧 workplace@mba.org.au
