Tax & Wages · 1 July 2026

Tax cut, minimum wage rise and payday super all kicked in this month

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Probably worth doing something about

Changes affect virtually every Australian worker: lower tax, higher wages for award employees, and super now paid with every payslip rather than quarterly.

In a nutshell: From 1 July 2026, the lowest marginal tax rate dropped from 16% to 15% on income $18,201–$45,000 (saving up to ~$268/year per worker). The National Minimum Wage rose 6% to $26.44/hr; award rates rose 4.75%. Payday super now requires employers to pay super contributions with every wage payment, not quarterly. A further tax cut to 14% is legislated for 1 July 2027.

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What they’re saying

The cut flows through PAYG withholding — no action needed. But the saving is modest; it does not offset rate-driven mortgage cost increases for most households.

Payday super helps workers catch unpaid contributions earlier; compliance burden falls on employers, who face penalties for late payment under the ATO.

SBS News, Fair Work Ombudsman, ATO, AustralianSuper and Addisons law firm all confirm these changes are now law and in effect.

1 July 2026 changes: Pay, tax, super and free electricity explained | SBS News

Payday Super: New rules starting 1 July 2026 - Fair Work Ombudsman

Minimum wage, paid parental leave, super: what changes on 1 July 2026? - We Are Union VTHC

1 July 2026 Changes: Tax, Superannuation, Centrelink and Government Updates Every Australian Should Know - Elmasri Accounting

Do I care?

Confirm super is listed on each payslip from July onwards; if absent after two pay cycles, contact your super fund or the ATO.

Payday super is now a legal obligation — ensure payroll software is updated and super is remitted with each pay run to avoid ATO penalties.

Check your next payslip — the changes should already be showing up.

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